GRSE shares jump 9% after signing Rs 32,000 crore Indian Navy contract for five next-generation corvettes

Shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped nearly 9% on Tuesday to hit an intraday high of Rs 2,231 on the NSE after the company announced that it had signed a Rs 32,000 crore contract with the Indian Navy for the construction of five Next Generation Corvettes (NGCs).

According to a filing with the exchange, the company said that signing of the contract marks a major step forward in strengthening India's indigenous warship-building capabilities and advancing the vision of Aatmanirbhar Bharat in defence manufacturing. The company had emerged as the lowest bidder (L1) for the prestigious project.

The project is to be completed within nine years and four months from the date of receipt of first stage payment. The nature of this contract is construction and delivery, and it is awarded by a domestic entity.


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The company further said that building on its extensive experience in the construction of guided-missile and antisubmarine warfare corvettes, GRSE will now undertake the construction of these next generation warships, which will feature enhanced capabilities, advanced sensors and sophisticated weapons systems.

The project further reinforces the shipyard's position as a key contributor to India's maritime defence preparedness and indigenous warship design and construction.

Highlighting the description of the next generation corvettes, the company said that they will measure 127 metres in length and 17.6 metres in beam, with a specified deadweight tonnage of 4,950 tonnes. The warships will have an endurance of 14 days at sea without replenishment and a maximum speed of 26 knots.

It is designed to accommodate 11 officers and 139 sailors, the vessels will be built to the classification requirements of a Naval Headquarters-approved classification society.

The corvettes will feature an advanced Combined Diesel and Gas Turbine–CrossConnect (CODAG-CC) propulsion arrangement, driving two Controllable Pitch Propellers (CPP) and this propulsion architecture is designed to support the operational requirements of these versatile frontline combat platforms, the filing further highlighted.

Designed for a wide spectrum of maritime missions, the NGCs will undertake multi-role operations, including offensive ship-to-ship and ship-to-surface missile attacks, anti-missile defence, anti-submarine warfare, escort duties, maritime interdiction operations (MIO), including Visit, Board, Search and Seizure (VBSS), and local naval defence.

To support these missions, the warships will be equipped with an advanced suite of weapons, sensors and navigation systems and the proposed systems include Medium Range AntiShip Missiles, Medium Range Surface-to-Air Missiles (MRSAM) and 324 mm torpedo tubes.

The shipyard is currently building nine warships, including an advanced guided missile frigate under the Navy's Project 17A, four ASW-SWCs and four Next Generation Offshore Patrol Vessels.

The company also said that apart from these, GRSE is executing orders for 36 other platforms, including 13 vessels for export.

Also Read | Defence Ministry inks Rs 53,886 crore deals for new indigenous warships

GRSE share price

The shares of Garden Reach Shipbuilders & Engineers (GRSE) rose over 4% in the last one month. In the last one year and the current calendar year so far, the stock fell over 14% and 9% respectively.

The stock has jumped nearly 197% in the last three years and nearly 791% in the last five years.

Disclosure: This article has been written by Surbhi Khanna, who is not a SEBI-registered Research Analyst or an investment advisor . Surbhi Khanna does not hold any financial interest in Economic Times as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.