Garden Reach Shipbuilders stock price: The shares of the shipbuilding company jumped over 7% on Wednesday after GRSE signed a Memorandum of Understanding (MoU) with Norway's Kongsberg to build India's first Polar Research Vessel (PRV), indigenously.
At 11:10 am, the Garden Reach Shipbuilders share price was trading at ₹3,417, up by 8.46% on the National Stock Exchange.
Ports, Shipping and Waterways Minister Sarbananda Sonowal was also present as the MoU was signed on June 3 in Oslo, Norway.
"The MoU between GRSE and Knogsberg marks an important milestone for India’s shipbuilding sector as it will receive design expertise for developing the PRV while taking into account the requirement of National Centre for Polar and Ocean Research (NCOPR), who will use it for research activities in the polar and southern ocean realms," the government release read.
Indian shipyards currently account for 11% of the Norwegian Shipowners’ Association (NSA)’s order book. This leaves significant room for expansion. Plus, sectoral players can also leverage India’s ship-breaking credit note scheme. In the last 5 trading sessions, GRSE stocks have witnessed a double-digit rise of 14.09% on the NSE.
"GRSE, with its rich experience of constructing complex maritime platforms like warships, survey & research vessels, will build this PRV in its yard in Kolkata, ensuring a boost to Government’s ‘Make In India’ initiative. The leadership of Kongsberg as well as GRSE joined the Union Minister, senior government officials from Norway and India at the event," the release added.
GRSE Share Price Outlook
The multibagger shipbuilding stock experienced a strong rally last month as border tensions between India and Pakistan escalated. GRSE shares jumped around 75% on the bourses. So far this year, the shares have jumped over 104% on the NSE. The stock hit a fresh all-time-high of ₹3,465 price level on Wednesday. In the 6 months period, GRSE stock has increased by nearly 90%.
Meanwhile, the broader defence index also witnessed a strong rally last month. The Nifty India Defence index soared over 25% in May, as against a minor 0.56% surge in the benchmark Nifty50 index
