GRSE shares jump after signing Rs 32,000 crore Navy contract
Garden Reach Shipbuilders & Engineers shares rose on Tuesday following a contract to build five next-generation corvettes for the Indian Navy.
Garden Reach Shipbuilders & Engineers (GRSE) shares rose nearly 9 per cent on Tuesday to hit an intraday high of Rs 2,231 on the NSE. The jump followed the announcement that the company signed a Rs 32,000 crore contract with the Indian Navy to construct five Next Generation Corvettes (NGCs).
According to reports from The Economic Times and Moneycontrol, the contract was signed on Monday. GRSE emerged as the lowest bidder for the project. The Defence Ministry announced contracts worth Rs 53,866.50 crore with GRSE and Goa Shipyard Limited (GSL) for the construction of eight next-generation warships, with GRSE building five and GSL building three.
The NGCs will be 127 metres long and 17.6 metres wide, with a deadweight tonnage of 4,950 tonnes. The vessels are designed to accommodate 11 officers and 139 sailors, featuring a maximum speed of 26 knots and an endurance of 14 days at sea without replenishment.
The warships will be equipped with advanced sensors and weapons, including Medium Range Anti-Ship Missiles, Medium Range Surface-to-Air Missiles, and 324 mm torpedo tubes. They will also feature a Combined Diesel and Gas Turbine–CrossConnect (CODAG-CC) propulsion arrangement.
Defence Minister Rajnath Singh said the project would provide an impetus to the shipbuilding sector and promote the use of Made-in-India materials and technologies. The project is expected to be completed within nine years and four months from the receipt of the first stage payment.