GRSE shares soar over 10% as warship maker wins $54-million international order

Shares of Garden Reach Shipbuilders & Engineers (GRSE) soared by over 10% in the early hours of trade on Monday, June 24, in the backdrop of the company winning a $54-million international order.

In the first hour of trade on the NSE, the stock peaked to a high of ₹1,819.3 apiece, which was 10.6% higher as against the last closing price.

GRSE pared some of the gains as the trading progressed, and was trading at ₹1,772 apiece at 11:07 am, still up 7.7% as compared to the previous close.

$54 million order

GRSE on Saturday, June 22, informed the bourses that it signed an agreement with Germany-based Carsten Rehder Schiffsmakler and Reederei for the construction and delivery of four multi-purpose vessels of 7,500 deadweight tonnage (DWT) each, with an option of building another four ships in near future.

"The vessels will be 120 metres long and 17 metres wide with a maximum draft of 6.75 metres. Each of them can carry 7,500 metric tonnes of cargo," it said in the regulatory filing.

They will have a single cargo hold each to accommodate bulk, general and project cargoes. Containers will be carried on hatch covers, GRSE added.

The ships have been specifically designed to carry multiple large windmill blades on deck.

India's key warship exporter

Notably, GRSE is one of the major warship exporters of India. In 2014, the CGS Barracuda, an Offshore Patrol Vessel, built by GRSE, was exported to Mauritius. This was the first warship to be exported by India.

In 2021, the GRSE-built Fast Patrol Vessel PS Zoroaster was exported to the Seychelles. The ship returned to GRSE earlier this year for a refit that was completed in record time. The shipyard is also currently working on six patrol boats and a TSH dredger for the government of Bangladesh.

In 2023, the company delivered the MV Ma Lisha, a passenger-cumAnnexure-I cargo ocean-going ferry to the Cooperative Republic of Guyana. "It is the largest and most advanced ferry in that country now," according to GRSE.