Garden Reach Shipbuilders Share Gains After Securing Two Orders in a Single Day

Garden Reach Shipbuilders shares rose following the announcement of two significant orders on October 4, 2024. 

The company received letters of acceptance for contracts to design, build, operate, and maintain hybrid electric ferries under the West Bengal government’s WBIWTLSD Project, Transport Department, Government of West Bengal. 

As per the contract, the company will manufacture 13 units comprising 100 Pax Hybrid Electric Ferries for Cross Ferry Operation – Non-AC and 200 Pax Twin Deck Hybrid Electric Ferries for Cross Ferry Operation – With AC on Main Deck. The total value of the contract stands at ₹226.18 crore (excluding GST)

Earlier in the day, Garden Reach Shipbuilders announced that it has signed an agreement with M/s Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG Germany for the construction and delivery of 5th Multi-purpose vessel (MPV) of 7,500 DWT. This agreement underscores its commitment to handle export orders. 

The company further stated that this contract is in line with the ‘Option Agreement’ signed between both the parties, for procurement of four additional MPVs from GRSE. The shipyard will build a total of eight vessels (08) at an ~order value of 108 million USD.

Each multi-purpose vessel will measure 120 meters in length and 17 meters in width, with a maximum draft of 6.75 meters, capable of carrying 7,500 metric tonnes of cargo. The design includes a single cargo hold for bulk, general, and project cargo, with provisions for transporting large windmill blades on deck.

Last month, the company secured a $54 million order from Carsten Rehder Schiffsmakler and Reederei GmbH for four additional vessels, which will be designed, built, and delivered over 33 months from the original contract signing date.

In August, Garden Reach set an ambitious revenue target of ₹10,000 crore for FY30, marking a threefold increase from the ₹3,592 crore reported at the end of FY24. Commodore PR Hari, IN (Retd.), the company’s Chairman and Managing Director, expressed confidence that these targets are achievable.

On October 04, 2024, Garden Reach Shipbuilders & Engineers shares opened at ₹1,651.10 and touched the day high of ₹1,695.75 at 1:07 PM. 

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