GRSE Share Price Rises Over 3% After Major Naval Contract Development

Market Performance

Garden Reach Shipbuilders & Engineers Ltd (GRSE) witnessed a notable surge in early trade on May 22, with the GRSE share price jumping over 3%.

The sharp movement came after the company announced a major development regarding a significant defence contract.

GRSE Emerges as L1 Bidder for Rs 25,000 Crore Naval Deal

In a regulatory filing, GRSE announced that it has emerged as the Lowest bidder for the Indian Navy's project to construct eight Next Generation Corvettes (NGCs).

• The estimated value of this contract is over ₹25,000 crore.
• This deal is part of a strategic initiative by the Defence Ministry of India.
• The Commercial Negotiation Committee (CNC) opened bids on May 21, with GRSE securing the lowest bid.

GRSE highlighted that the L1 bidder will be awarded five of the eight NGC ships.

Company Details

GRSE has emphasized the importance of this order, calling it a "high-value" contract that the shipyard has been anticipating.

• The company has a strong track record with the Indian Navy.
• It has built all nine currently operational Corvettes, including missile surface and anti-submarine warfare (ASW) types.
• GRSE has positioned itself as a leader in constructing Corvettes in India.

Commodore PR Hari (IN Retd), Chairman and Managing Director of GRSE, reinforced this by stating that the company has mastered Corvette building.

Timeline and Revenue Impact

Although GRSE has emerged as the L1 bidder, the official contract is expected to be finalized over the next few months.

Key highlights include:

• Contract signing expected in approximately 6 months
• Revenue recognition from the project is likely to start in 2027

This timeline suggests a long-term revenue boost for the company, potentially strengthening the GRSE share price in the future.

Summary

In summary, GRSE's share price climbed more than 3% after the company emerged as the lowest bidder for a ₹25,000 crore Indian Navy contract.

This project, which involves constructing five Next Generation Corvettes, marks a significant milestone for GRSE and reflects its ongoing leadership in naval defence manufacturing. While the actual financial impact will begin in 2027, investor sentiment has already responded positively to the development.