Garden Reach Shipbuilders wins $21 million order; Stock surges to take market cap past ₹25,000 crore
Garden Reach Shipbuilders wins $21 million order; Stock surges to take market cap past ₹25,000 crore
Shares of Garden Reach Shipbuilders surged as much as 8% on Monday after the company signed a contract for the construction of an Advanced Ocean-Going Tug for the government of Bangladesh.
The company will be involved in the design, construction and delivering the Ocean Going Tug Vessel, it said in an exchange filing.
Garden Reach is supposed to execute this order in the next 24 months and the order is valued at nearly $21 million.
The overall length (LOA) of the tug will be nearly 61 meters, and the vessel will be about 15.80 meters wide with a depth nearly 6.80 meters.
The order comes just a few days after the company had entered into a contract with a German company to deliver at least four multi-purpose cargo vessels.
A few weeks earlier, Garden Reach had signed another contract in Bangladesh for the delivery of a Trailing Suction Hopper (TSH) dredger.
Just last Friday, Garden Reach's peer, Cochin Shipyard had entered into an agreement with a Norwegian company for cargo vessels worth ₹1,100 crore, which are to be executed by September 2028.
Shares of Garden Reach Shipbuilders are trading with gains of 7.6% on Monday at ₹2,258. With this move, the stock's overall market capitalisation has now crossed ₹25,000 crore. The company's market capitalisation in 2024 has gone up by more than 2.5x, having begun the year at a figure of ₹10,000 crore.
The stock of Garden Reach Shipbuilders has risen over 150% in the last 12 months.