Garden Reach Shipbuilders bags order worth Rs. 2,435 crore, stock soars

The Garden Reach Shipbuilders & Engineers Limited which hit the secondary market this month, has signed a contract with the Ministry of Defence, for construction and delivery of four large survey vessels, according to the company’s filing with the exchanges.

The estimated cost for these vessels is around Rs. 2,435.15 crore which will be under a fixed price basis. The company further stated that first ship is to be delivered within 36 months from the date of signing the contract. While the next ships are to be delivered in a staggered manner with a gap of 6 months each from the delivery of the previous ship. The project is expected to be completed within 54 months from the date of signing of the contract.

With this positive development, the stock of Garden Reach Shipbuilders spikes almost 10.5 per cent to touch an intraday high of Rs. 93 apiece. At 11.11 hours, the stock was trading at Rs. 91 apiece, up by almost 8 per cent on Wednesday.