GRSE shares surge by 10 % on May 22 after the company said in a trade filing that it has emerged as the low bidder for an over Rs 25,000 crore contract to build eight next technology Corvettes for the Indian Navy. Gains have also been visible in different shipbuilding shares, including Mazagon Dock and Cochin Shipyard.
GRSE attended the Commercial Negotiation Committee (CNC) assembly convened by the Defence Ministry for eight Next-Generation Corvettes (NGC) on May 21.
GRSE shares Rise after emerge as L1 Bidder
“During the assembly, the Commercial bids opened and it referred to that GRSE emerge as the Lowest bidder (L1) for Construction of Next Generation Corvettes (NGC) for Indian Navy. The L1 bidder presented five NGC ships at cost of over Rs 25,000 crore,” the company filing said. This L1 win is equal to GRSE’s orderbook of Rs 23,877 crore as of February 2025.
Company Signed Rs 25,000 crore contract
After emerging as the L1 bidder, it take around six months for the contract to signed, GRSE stated, and the revenue recognition from the project is anticipated to start in 2027. “As a long way as Corvettes are concerned, we’ve mastered the construction of Corvettes. Nine Corvettes, each missile surface as well as ASW, currently going for walks in the Navy, and all Nine constructed by GRSE,” Commodore PR Hari said.
GRSE shares show that future bids for Naval orders would work in favor of the shipbuilder, as they might accrue because the modern order book starts to dip.
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