Garden Reach Shipbuilders Wins $21 Million Order; Stock Surges, Market Cap Exceeds ₹25,000 Crore

Shares of Garden Reach Shipbuilders saw a significant rise of up to 8% on Monday. This surge came after the company announced it had secured a contract to build an Advanced Ocean-Going Tug for the Bangladeshi government. According to an exchange filing, the company will handle the design, construction, and delivery of this vessel. The project, valued at nearly $21 million, is expected to be completed within the next 24 months. The tug will be approximately 61 meters long, 15.80 meters wide, and have a depth of about 6.80 meters.

This new order follows closely on the heels of another contract Garden Reach signed with a German company to deliver at least four multi-purpose cargo vessels. Additionally, a few weeks ago, the company secured another contract in Bangladesh for a Trailing Suction Hopper (TSH) dredger.

In related news, last Friday, Cochin Shipyard, a competitor of Garden Reach, entered into an agreement with a Norwegian company to build cargo vessels worth ₹1,100 crore, with a completion deadline of September 2028.

On Monday, Garden Reach Shipbuilders’ shares were trading up by 7.6% at ₹2,258. This increase has pushed the company’s market capitalization past ₹25,000 crore. At the start of 2024, the market cap was around ₹10,000 crore, meaning it has more than doubled in value. Over the past 12 months, the stock has risen by over 150%.