Garden Reach Shipbuilders & Engineers, a Government of India undertaking, has secured an order for the construction and delivery of an additional four multi-purpose vessels. This order comes from Carsten Rehder Schiffsmakler and Reederei GmbH & Co, a company with whom GRSE has previously signed a contract.
What Happened: The order, which is for vessels of 7,500 DWT (Deadweight tonnage) each, comes on the existing terms and conditions. The total value of the total order for eight vessels is approximately $108 million (around ₹896 crore). The previous order for four vessels was given back in June 2024.
The order is expected to be executed within 33 months from the date of signing the contract. The contract involves the design, construction, and delivery of the vessels, each capable of carrying 7,500 metric tonnes of cargo. The vessels, specifically designed to carry multiple large windmill blades on deck, will be 120 metres long and 17 metres wide with a maximum draft of 6.75 metres.
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Earlier in the day, the Kolkata-based shipbuilding company was elevated from ‘Schedule B' to ‘Schedule A' Central Public Sector Enterprise (CPSE) by the Government of India. This upgrade was a significant milestone for GRSE, reflecting its robust financial performance, operational efficiency, and contribution to national security.
Shares of Garden Reach Shipbuilders have surged over 130% in the past six months. Analysts at Antique Broking maintained their "buy" rating for the shipbuilder with a target price of ₹2,092, indicating an around 17% upside from the stock's last closing price. The company's current order book stands at ₹25,230 crore, with major projects set for execution over the next 2-3 years.
Price Action: GRSE’s share price was down 0.56% to close at ₹1,717.10 on Wednesday.
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