Garden Reach Shipbuilders gets $21 million order from Bangladesh government

1 Jul 2024 , 11:50 AM

Garden Reach Shipbuilders’ shares rose as much as 10% on Monday after the company received a contract from the Bangladesh government to build an Advanced Ocean-Going Tug.

The company will be responsible for the design, building, and delivery of the Ocean Going Tug Vessel, according to an exchange filing.

Garden Reach is expected to complete this order in the next 24 months, and it is worth about $21 Million.

The tug’s overall length (LOA) will be roughly 61 metres, and the vessel will be around 15.80 metres wide and 6.80 metres deep.

The purchase comes only a few days after the company signed a contract with a German company to deliver at least four multi-purpose cargo vessels.

Garden Reach recently also entered into another contract in Bangladesh to deliver a Trailing Suction Hopper (TSH) dredger.

Garden Reach’s competitor, Cochin Shipyard, has signed a ₹1,100 Crore contract with a Norwegian business to build cargo vessels by September 2028.

At around 11.40 AM, Garden Reach was trading 8.95% higher at ₹2,287 per piece, against the previous close of ₹2,099.10 on NSE. The counter touched a new 52-week high of ₹2,309.

With this increase, the stock’s market capitalization has now crossed ₹25,000 Crore. The company’s market capitalization has increased by more than 2.5x in 2024, from ₹10,000 Crore at the beginning of the year.

Garden Reach Shipbuilders’ stock has gained by more than 150% during the last year.

Garden Reach Shipbuilders & Engineers Ltd. is an Indian shipbuilding firm. The Company is administratively controlled by the Ministry of Defence and primarily serves the shipbuilding needs of the Indian Navy and Coast Guard.

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