Garden Reach Shipbuilders Secures $21 Million Bangladesh Contract, Shares Surge

The Bangladeshi government has awarded Garden Reach Shipbuilders & Engineers Ltd. (GRSE) a $21 million contract to design, build, and deliver an advanced ocean-going tug. This contract is a major boost for the company. The company’s shares surged by as much as 10% on Monday as a result of this move, hitting a new 52-week high of ₹2,309.

In the following twenty-four months, GRSE is supposed to finish this order, according to an exchange filing. The Advanced Ocean-Going Tug will have dimensions of 6.80 meters for depth, 15.80 meters for breadth, and roughly 61 meters for overall length (LOA).

This contract comes right after GRSE has agreed to providing at least four multipurpose cargo vessels under another arrangement with a German company. Furthermore, GRSE has secured a contract in Bangladesh for the provision of a Trailing Suction Hopper (TSH) dredger.

In related industry news, GRSE’s rival Cochin Shipyard has signed a ₹1,100 crore contract with a Norwegian company to build cargo vessels, with completion scheduled for September 2028.

Monday at roughly 11:40 AM saw GRSE’s shares close at ₹2,287 per share on the NSE, 8.95% higher than when it closed at ₹2,099.10. The company’s market valuation has surpassed ₹25,000 crore thanks to the recent spike in share price. Notably, from ₹10,000 crore at the start of the year to over ₹25,000 crore, the market value of GRSE has more than doubled in 2024.

GRSE’s stock has increased impressively by more than 150% in the last year, which is indicative of the company’s strong growth and growing market position. One of the leading shipbuilding companies in India, Garden Reach Shipbuilders & Engineers Ltd., mainly serves the Indian Navy and Coast Guard. The Ministry of Defence has administrative jurisdiction over the company.

The government of Bangladesh has placed yet another order with GRSE, demonstrating the company’s expanding global reach and capacity to complete challenging shipbuilding projects. The company has established itself as a major participant in the international shipbuilding market thanks to its strategic contracts and steady performance.