GRSE shares hit 10% upper circuit after MoU with Norway’s Kongsberg for India’s first polar research vessel

Synopsis

Shares of Garden Reach Shipbuilders and Engineers (GRSE) surged 10% after signing an MoU with Norway’s Kongsberg for India’s first Polar Research Vessel. The deal marks a significant boost for GRSE amid its ongoing defence shipbuilding projects, including the Navy’s Next Generation Corvettes order.

Shares of Garden Reach Shipbuilders and Engineers (GRSE) hit the 10% upper circuit at Rs 3,464.8 on Wednesday after the company signed a Memorandum of Understanding (MoU) with Norway’s Kongsberg Oslo to support the indigenous construction of India’s first-ever Polar Research Vessel (PRV).

The MoU was signed on June 3 in Oslo in the presence of Sarbananda Sonowal, Union Minister for Ports, Shipping, and Waterways.

Commenting on the development, Sonowal said the agreement "signals India’s unwavering commitment to scientific advancement and sustainable development." He noted that the vessel will feature advanced scientific equipment, enabling deep-sea research, marine ecosystem studies, and further exploration into the planet’s past, present, and future.

During his visit, Sonowal also participated in ministerial discussions on shipping and ocean business, reaffirming India’s vision of "MAHASAGAR"—Growth for All.

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Earlier, in May, GRSE announced that it had emerged as the lowest bidder (L1) for the Indian Navy’s Next Generation Corvettes (NGC) project, worth over Rs 25,000 crore.

In a regulatory filing, GRSE confirmed its participation in a Commercial Negotiation Committee (CNC) meeting convened by the Ministry of Defence on May 21 for the opening of bids to acquire eight NGC ships. Of these, GRSE is expected to be awarded five vessels. This move significantly strengthens the company’s order book and reinforces its position in the defence shipbuilding sector.

Separately, GRSE also disclosed in May that the Bangladesh government had cancelled a $21 million (around Rs 180 crore) order for the construction of an advanced ocean-going tug.

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GRSE Share Price Target and Performance

The stock has surged 168% in the past three months and 629% over the last two years. GRSE’s current market capitalisation stands at Rs 38,603 crore.

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