Garden Reach Shipbuilders up over 3% after receiving LoI worth ₹491 crore from Ministry of Defence

Garden Reach Shipbuilders’ share price today had hit an intraday high of ₹1,870 per share and was then trading at ₹1833.70 per share.

The company reported that it has received the Letter of Intent from the Naval Physical & Oceanographic Laboratory (NPOL), Government of India, Ministry of Defence DRDO, Kochi. The contract is for the design, development, construction, and integration of equipment, testing, certification, commissioning & supply of one Acoustic Research Ship (ARS).

The project is expected to be executed within 36 months from the signing of the contract.

Earlier this month, Garden Reach announced that it had won an order from the Transport Department of the Government of West Bengal for 13 units. The units comprised hybrid electric ferries for cross-ferry operation with a capacity of 100 people (pax). Further, the order also comprised 200 pax twin deck, hybrid electric ferries.

The company will design, build, operate, and maintain the hybrid electric ferries under the WBIWTLSD Project. The order value is worth ₹226.18 crore and is expected to be executed within 30 months.

Additionally, the company had announced that it had won an order for the construction of a 5th multi-purpose vessel (MPV) of 7,500 deadweight tons (DWT). The Garden Reach Shipbuilders order is part of the option agreement with Carsten Rehder Schiffsmakler and Reederei, Germany. The order value is worth $108 million for the construction of eight vessels.

Garden Reach Shipbuilders’ stock price has risen by nearly 111.59% since the beginning of the year. The stock has gained over 163% in the past year.