GRSE Shares Rise 5% on Deal with German Firm for 2 Multi-Purpose Vessels
After Garden Reach Shipbuilders and Engineers (GRSE) signed a contract with Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG of Germany for the construction and delivery of the 7th and 8th Multi-purpose Vessels (MPV) of 7,500 DWT in Hamburg, Germany, the company’s shares jumped as much as 5% to an intraday high of Rs 1,790 on the BSE on Tuesday.
The ‘Option Agreement’ previously agreed by the two parties for purchasing four further MPVs from GRSE is followed by this contract. The shipyard will construct eight boats with an expected order value of 108 million USD.
With a maximum draft of 6.75 meters and dimensions of 120 meters by 17 meters, each Multi-purpose Vessel (MPV) can transport 7,500 metric tons of cargo. Containers will be positioned on hatch covers in a single cargo hold on each vessel, which is intended to store bulk, general, and project cargoes. These vessels are made especially to carry big windmill blades on board.
In the presence of Cmde. PR Hari, IN (Retd.), Chairman & Managing Director of GRSE, Mr. Jonas Meinhardt, Managing Director of Carsten Rehder, and other senior officials, Cdr. Prasenjit Roy, IN (Retd.), Deputy General Manager (Commercial Shipbuilding) at GRSE, and Mr. Thomas Rehder, Managing Director of Carsten Rehder, signed the agreement for the 7th and 8th MPVs.
Over the past year, GRSE shares have increased by 118% and have beaten their industry by 42%. In the meantime, the stock returned an incredible 637% during the previous three years. Trendline data shows that Garden Reach Shipbuilders outperformed Sector, Industry, Nifty50, and Sensex regarding one-year gains.
The Ministry of Defence oversees(GRSE), a Defence Public Sector Undertaking (DPSU). It is categorized as a Mini Ratna Category I Schedule “A” firm. Since its founding in 1934, GRSE has established a solid reputation as one of India’s top shipyards, specializing in building various boats, including commercial, military, and security-related specialist ships.
