GRSE shares rise after Rs 2,670 crore capacity expansion plan; stock reacts

Defence stock: Garden Reach Shipbuilders & Engineers Ltd (GRSE) shares rose in Monday's trade after the defence PSU announced capacity expansion across three facilities in West Bengal with a combined investment of Rs 2,670 crore. The shipbuilder said the expansion is aimed at strengthening its shipbuilding capabilities and improving its ability to execute larger and more complex projects.

As per a BSE filing, GRSE will invest over Rs 2,500 crore at its Raichak facility, nearly Rs 100 crore at its Timber Pond facility in Shalimar and around Rs 70 crore at the Damodar facility at Kidderpore Docks.

The Raichak facility will be developed as a shipbuilding hub with a 200-metre dry dock, slipway, launching pad, jetties and block fabrication facilities. The facility, which will have a 356-metre waterfront and 96-metre jetty, will be capable of constructing warships up to 200 metres and commercial vessels up to 60,000 DWT.

At the Timber Pond facility in Shalimar, GRSE will spend nearly Rs 100 crore on medium-sized shipbuilding and repair facilities. The project includes restoration of a 130-metre dry dock and construction of a 120-metre slipway.

The company will invest around Rs 70 crore at the Damodar facility at Kidderpore Docks for medium-sized vessel repairs and construction of electric ferries and other small crafts.

The three projects are part of GRSE's broader expansion plan, with the foundation stones laid on August 23. The company said the facilities will help it meet growing requirements from maritime and defence sectors.

GRSE is a Navratna defence PSU under the Ministry of Defence and has built over 800 platforms, including 118 warships for the Indian Navy, Coast Guard and friendly foreign countries.