Shares of Garden Reach Shipbuilders and Engineers snapped a three-day losing run and rose over 9 percent on June 24, after the company received an order worth $54 million from a German company for multi-purpose vessels. The order is expected to be executed within 33 months.
At 9.43 AM, shares of Garden Reach traded nearly 7 percent higher at Rs 1,753 apiece. The stock has doubled in the past six months.
On June 22, Garden Reach informed the exchanges that it had signed an agreement with Carsten Rehder Schiffsmakler and Reederei GmbH & Co., KG Germany for the construction and delivery of four multi-purpose vessels. Each vessel would have a deadweight tonnage (DWT) of 7,500. This agreement also includes an option to build an additional four ships in the future.
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The vessels will be 120 meters long and 17 meters wide with a maximum draft of 6.75 meters. Each ship will feature a single cargo hold capable of carrying 7,500 metric tonnes of cargo, accommodating bulk, general, and project cargoes, with containers carried on hatch covers. Notably, the design includes the capacity to transport multiple large windmill blades on deck.
The agreement was formalised in the presence of several key officials of both companies.
Garden Reach has a strong history in ship exports. It was the first Indian shipyard to export a warship CGS Barracuda to Mauritius, in 2014. Currently, the shipyard is engaged in constructing six patrol boats and a TSH dredger for Bangladesh. In 2023, GRSE delivered the MV Ma Lisha, a passenger-cum-cargo ferry, to the Cooperative Republic of Guyana, which is now the most advanced ferry in that country.
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