GRSE shares rise 4% as board approves Rs 2,896 crore for shipyard expansion

Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) rose 4% on Tuesday after the company's board approved a capital budget outlay of Rs 2,896 crore for the construction of a greenfield shipyard at Raichak, aimed at enhancing its shipbuilding capacity across the naval and commercial segments.

The approval was made at the company's 423rd board meeting held on September 21, according to an exchange filing. Garden Reach Shipbuilders said the development is part of its capacity expansion plan through three new facilities, including the proposed Raichak shipyard.

GRSE stock rose 3.63% to hit a high of Rs 2,458.95 apiece, compared with its previous close of Rs 2,372.80. The shares opened at Rs 2,399.95 and touched a low of Rs 2,392.95 during the session.

The company had earlier disclosed its plans for capacity expansion through three new facilities. The latest board approval specifically covers the capital budget for construction of the greenfield shipyard at Raichak. The project is intended to strengthen Garden Reach Shipbuilders' ability to undertake shipbuilding activities in both the naval and commercial segments.

The Rs 2,896-crore capital expenditure approval marks a significant investment towards expanding the company's shipbuilding infrastructure.

GRSE is a state-owned shipbuilder under the Ministry of Defence and is involved in the construction of warships and other vessels. Its operations include shipbuilding and ship repair, with the company catering primarily to the Indian Navy and Coast Guard, while also pursuing opportunities in the commercial shipbuilding segment.

The company's board approved the capital budget outlay as part of its broader capacity expansion initiative. The filing did not disclose any additional financial details related to the proposed shipyard.