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In a regulatory filing, GRSE informed that it participated in the Commercial Negotiation Committee (CNC) meeting convened by the Ministry of Defence on May 21 for the opening of commercial bids for the acquisition of eight NGC ships.
“In terms of Regulation 30 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “SEBI Listing Regulations”), we wish to inform you that GRSE attended the Commercial Negotiation Committee (CNC) meeting convened by the Ministry of Defence (MoD) for opening of commercial bids for the acquisition of eight (08) Next Generation Corvettes (NGC) on 21 May 2025 in New Delhi,” the company said in an exchange filing.
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As per the communication, the company will be awarded five of the eight ships under the project. This significant development strengthens GRSE’s order book and enhances its positioning in the Indian defence shipbuilding sector.
In another development, GRSE on Wednesday had informed that the Bangladesh government has cancelled an order worth $21 million (approximately Rs 180 crore) for the construction of an advanced ocean-going tug.
According to the company’s exchange filing on Wednesday, the order was placed by the Directorate General Defence Purchase under the Ministry of Defence, Bangladesh. As per the initial contract, the vessel was to be designed, built, and delivered within 24 months. The tug was planned to be 61 metres long, 15.8 metres wide, with a depth of 6.8 metres and a top speed of at least 13 knots under full load.
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Kolkata-based Garden Reach Shipbuilders is a public sector company that builds and repairs commercial and naval vessels. Its primary client includes the Indian Navy and Indian Coast Guard.
The cancellation comes amid growing tensions between India and Bangladesh following the ouster of former Prime Minister Sheikh Hasina in August last year. The interim administration led by Muhammad Yunus has tilted towards China, signing deals worth $2.1 billion.
Last week, India imposed import curbs on Bangladeshi goods worth $770 million (Rs 6,600 crore), covering 42% of total bilateral imports. The move was seen as a response to Dhaka’s recent restrictions on Indian goods such as yarn and rice, and the imposition of a transit fee on Indian cargo.
GRSE share price target
According to Trendlyne, the average target price for GRSE stands at Rs 1,327, implying a downside of nearly 47% from current levels. Among the 2 analysts covering the stock, the consensus rating is ‘Hold’.
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GRSE shares performance
GRSE shares closed at Rs 2,500 on Wednesday, up 4.38% on the BSE, while the benchmark Sensex gained 0.51%. The stock has rallied 90% over the past three months and 393% in the last two years. Its current market capitalisation is Rs 28,639 crore.
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