 "Cochin Shipyard freezes at 5% upper circuit on order boost from Adani Ports")
Cochin Shipyard shares hit a 5-per cent upper circuit band on the BSE on Friday, December 27, 2024. The share price was frozen at Rs 1,532.1 per share at 1:30 PM as against a 0.4 per cent rise in the benchmark BSE Sensex index.
The surge in Cochin Shipyard shares came after Adani Ports and Special Economic Zone (Adani Ports) informed the stock exchanges that it has placed the "largest" order of Tugs with Cochin Shipyard worth Rs 450 crore.
"Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest integrated transport utility company, is pleased to announce the procurement of eight state-of-the-art harbour tugs, all to be constructed by Cochin Shipyard Ltd," Adani Ports said.
Adani Ports expects to receive the deliveries between December 2026 and May 2028.
Adani Ports shares, meanwhile, were flat at the time of writing of this report, edging 0.5 per cent lower at Rs 1,237 per share. During the day, Adani Ports stock has hit a high of Rs 1,253.6 and a low of Rs 1,234 per share.
"Our collaboration with Cochin Shipyard Ltd demonstrates our confidence in our nation's PSUs. By leveraging local manufacturing capabilities, which are world-class, we aim to contribute to the ‘Make in India’ initiative while ensuring that our operations meet international standards of safety and efficiency," Ashwani Gupta, whole-time director and CEO of Adani Ports and Special Economic Zone Limited (APSEZ) said in a statement.
Notably, this isn't the first time Adani Ports and Cochin Shipyard have joined hands.
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Earlier, Adani Ports had placed order for the construction of two 62-tonne bollard pull ASD (Azimuthing Stern Drive) tugs with Cochin Shipyard Ltd for Ocean Sparkle Ltd, both of which were delivered ahead of schedule and deployed at Paradeep Port and New Mangalore Port.
The construction of three additional ASD tugs is currently underway, bringing the total order to 13 tugs, aimed at providing a younger fleet for efficient and reliable services in the port sector.
Cochin Shipyard Limited (CSL) is a 'Miniratna' PSU, engaged in the construction of vessels, and repairs and refits of all types of vessels including upgradation of ships, periodical lay-up repairs, and life extension of ships.
Cochin Shipyard shares hit a record high of Rs 2,977 per share on July 8, 2024. The company has a market capitalisation of Rs 40,306.6 crore.
Cochin Shipyards Recent Orders
On November 30, 2024, Cochin Shipyard signed a contract with the Ministry of Defence (MoD) for Short Refit and Dry Docking of a large Indian Naval Vessel. The estimated contract value is above Rs 1,000 crore and the estimated duration for the project is around 5 months.
Prior to that, on November 22, Cochin Shipyard entered into a Memorandum of Understanding (MOU) with Seatrium Letourneau USA, Inc. (SLET) for the design and critical equipment for jack-up rigs for the Indian Market.
“Building on CSL’s extensive experience in ship construction and engineering and SLET’s renowned technical expertise and design capabilities, the partnership aims to capitalise on opportunities for Mobile Offshore Drilling Units (MODUs) designed to meet the needs of the Indian market,” Cochin Shipyard said.