GRSE shares jump 8% after signing construction contract with Bangladesh government

Shares of Garden Reach Shipbuilders & Engineers (GRSE) surged 8% to reach a new all-time high of Rs 2,268 on the BSE on Monday following the announcement of securing a contract to build an advanced ocean-going tug for the Government of Bangladesh. The project, valued at approximately $21 million, is expected to be completed within 24 months.

of Garden Reach & Engineers () rose 8% to its new all-time high of Rs 2,268 on BSE on Monday after the company announced securing a contract to construct an for the Government of Bangladesh.

The project is valued at approximately $21 million, and GRSE anticipates completing it within a timeframe of around 24 months.

The project will be on a design, build, and deliver basis, meaning that GRSE will be responsible for the designing and construction of the project and handing it over to the , once completed.

“Keeping up the tempo in the arena of Defence Exports, Garden Reach Shipbuilders & Engineers (GRSE) Ltd signed an agreement with the Directorate General Defence Purchase, Ministry of Defence, Government of the People’s Republic of Bangladesh today for the construction of an advanced Ocean-Going Tug. A few weeks ago, GRSE signed another contract with Bangladesh for the delivery of a Trailing Suction Hopper (TSH) dredger. More recently, on June 22, 2024, GRSE entered into a contract with a German company for the delivery of at least four multi-purpose cargo vessels,” said GRSE in a filing to the stock exchanges.

The filing further stated that the overall length of the tug will be nearly 61 meters, and the vessel will measure approximately 15.80 meters in width with a depth of nearly 6.80 meters.
The tug's bollard pull capacity will be 76 tons ahead and 50 tons astern, and the ship's maximum speed with a full load will be at least 13 knots.

The shares of GRSE have shown strong performance for investors, increasing nearly 4 times in the past year and multiplying 11 times over the last 2 years, according to BSE analytics.

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Source: Stocks-Markets-Economic Times