 "Garden Reach Shipbuilders shares jump 6% on four multipurpose vessels order")
Garden Reach Shipbuilders surges: Shipmaker Garden Reach Shipbuilders shares rallied as much as 5.47 per cent to hit an intraday high of 1811.20 per share on Thursday, September 19, 2024.
The uptick in Garden Reach Shipbuilders shares came after the company announced that it has secured an order for four (4) multi-purpose vessels from Carsten Rehder Schiffsmakler and Reederei GmbH & Co.
In an exchange filing, the company said, “We would like to inform you that on 18 Sep 2024, the Company has received a confirmation from the customer to buy and deliver additional four (4) Multi-Purpose Vessels, on the existing terms and conditions.”
According to the order, Garden Reach Shipbuilders will be responsible for the construction and delivery of additional four (4) multipurpose vessels of 7,500 DWT each, totaling to eight (08) vessels.
The cost of 4 additional multi-purpose vessels is approximately $54 million. Now, the total value would be approximately $108 million for eight vessels.
The company is expected to execute the project within 31 months from the date of signing of the contract.
More From This Section
Earlier in June, the company announced that it has secured an international order worth $54 million for the construction and delivery of four (4) multi-purpose vessels of 7,500 DWT each, with an option of building another four (04) ships in near future.
In an exchange filing, GRSE said, “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. The vessels will have a single cargo hold each to accommodate bulk, general and project cargoes. Containers will be carried on hatch covers. The ships have been specifically designed to carry multiple large windmill blades on deck.”.
GRSE has been a pioneer in the export of warships. 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, the company said.
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, GRSE 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, the company added.
GRSE is engaged in building warships and other vessels for the Indian Navy and Indian Coast Guard. It has also diversified into engineering business with a product profile of pre-fabricated steel bridges, various deck machinery items and assembly, as well as testing & overhauling of marine diesel engines.
At 11:11 AM, shares of Garden Reach Shipbuilders were trading 0.55 per cent lower at Rs 1,707.80 per share. In comparison, BSE Sensex was trading 0.67 per cent higher at 83,506.23 levels.