Garden Reach: GRSE shares rise 5% as defence PSU secures additional order

Shares of Garden Reach Shipbuilders & Engineers Ltd surged 6 per cent in Thursday's trade after the defence PSU secured an additional order for vessels from a German company. The shipbuilder said it received a confirmation from a customer to buy and deliver four additional multi-purpose vessels.

The size of the order is $54 million. The company had on Jun 22 informed stock exchanges about the signing of the contract with Carsten Rehder Schiffsmakler and Reederei GmbH & Co., KG Germany, for construction and delivery of multi-purpose vessels, with an option of building another four ships in near future.

Following the development, the stock jumped 5.47 per cent to hit a high of Rs 1,811.20 on BSE. With this, the stock has delivered 102 per cent return in 2024 so far and 110 per cent in the past one year.

Garden Reach Shipbuilders has been upgraded from 'Schedule B' to 'Schedule A' CPSE by the government, the PSU said on Wednesday. This upgradation of GRSE's status will enable the company enhance its senior management capacity, allowing it to more effectivity oversee and manage its business.

"This is a significant milestone for GRSE, reflecting its robust financial performance, operational efficiency, and contribution to national security. The Department of Public Enterprises, Ministry of Finance, Government of India , officially notified this upgradation on its website on 17 Sep 2024," it GRSE on Wednesday.