Garden Reach share in focus after $62 million order win, multiple MoUs

Shares of Garden Reach Shipbuilders & Engineers Ltd. (GRSE), the state-run defence company, will be in focus on Monday, September 22, following two major developments.

GRSE signed a $62 million agreement with Germany's Carsten Rehder Schiffsmakler and Reederei GmbH & Co for the construction of four Hybrid Multi-Purpose Vessels (MPVs), with a provision to build an additional two vessels.

The contract is to be executed within 33 to 42 months, the company said in an exchange filing.

This agreement marks a natural extension of the successful partnership between GRSE and Carsten Rehder, following the ongoing 7,500 DWT MPV project currently under execution in Kolkata.

According to the company, the four new hybrid MPVs underscore GRSE's expanding global footprint in commercial and green shipbuilding.

The vessels will measure 120 metres in length and 17 metres in width, with a maximum draft of 6.75 metres, and will be capable of carrying 7,500 metric tonnes of cargo in a single large hold, suitable for bulk, general, and project cargoes.

A unique design feature of these ships is their ability to transport multiple large windmill blades on deck, catering to the growing renewable energy logistics sector.

The MPV program had commenced with an initial contract for four vessels in June 2024, followed by further agreements in September 2024, December 2024, and March 2025, bringing the total to eight vessels.

Steel cutting for the CORAL 7500 DWT MPV series, GRSE’s first major international export order in the commercial vessel segment, began on April 17, 2025, formally marking the start of construction.

Separately, GRSE signed five Memoranda of Understanding (MoUs) with the Deendayal Port Authority, Kandla, Syama Prasad Mookerjee Port Authority, Kolkata, Indian Port Rail & Ropeway Corporation Limited, The Shipping Corporation of India, and Modest Infrastructure.

The MoUs create a structured framework for GRSE and its partners to explore and jointly develop projects across multiple domains, including newbuild construction, green and low-emission vessels, ship repair, construction of green tugs, development and maintenance of port infrastructure, jetty and berth development, multimodal logistics, last-mile connectivity, and related civil, rail, and ropeway infrastructure for ports and terminals.

Shares of Garden Reach Shipbuilders ended Friday's session 0.87% at ₹2,603.50. The stock has rallied nearly 60% so far in 2025.