Garden Reach Shipbuilders (GRSE) traded higher in Monday’s session, with the PSU defence major gaining 6% to hit a 11-week high of ₹2,760 apiece on multiple positive developments that aided the rally despite the broader markets remaining subdued.
The company, on Friday, said it had signed a contract worth USD 62.44 million with Germany’s M/s Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG in Hamburg for the construction of four hybrid multi-purpose vessels (MPVs).
The contract also includes a provision for two additional hybrid propulsion vessels, the company statement said. This agreement represents a natural extension of the successful partnership between GRSE and Carsten Rehder, following the ongoing 7,500 DWT Multi-Purpose Vessel (MPV) project currently under execution in Kolkata.
The MPV program had commenced with an initial contract for four vessels signed in June 2024, followed by further agreements in September 2024, December 2024, and March 2025, bringing the total to eight vessels.
On April 17, 2025, GRSE commenced steel cutting for this prestigious project, formally beginning construction of the CORAL 7500 DWT MPV series, its first major international export order in the commercial vessel segment.
In addition, the company also signed a series of Memorandums of Understanding (MoUs) with strategic partners in the shipbuilding, port, and infrastructure sectors.
The MoUs were signed with the Deendayal Port Authority, Syama Prasad Mookerjee Port Authority, Indian Port Rail & Ropeway Corporation Ltd., The Shipping Corporation of India, and Modest Infrastructure Pvt. Ltd.
According to the company, these MoUs will create a structured framework for GRSE and its partners to explore and jointly develop projects across multiple domains.
Garden Reach Shipbuilders share price up 14% in September
The company’s shares made a strong comeback in September, rallying 14% so far after closing the last two months lower. The reversal in sentiment was buoyed by positive developments, including recent order wins and an improving outlook for the broader defence sector, which rekindled investor enthusiasm in these once high-flying stocks.
The Defence Ministry approved the new Defence Procurement Manual (DPM) 2025, aiming to expedite revenue procurement for the armed forces, encourage domestic industry participation, and align processes with modern warfare requirements.
Earlier this month, the Defence Ministry also announced a 15-year modernisation plan outlining the future technology and equipment requirements of the armed forces through the 2030s.
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