GRSE share price hits record high after signing MoI with German shipbuilder; stock up 19% in 3 days

Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) rallied nearly 5 per cent on Thursday, June 5, touching an all-time high of Rs 3,520 in intraday trade on the BSE. The surge came after the defence PSU announced the signing of multiple strategic partnerships, including a memorandum of intent (MoI) with a German firm and two fresh memorandums of understanding (MoUs) with global players. The GRSE share price opened at Rs 3,399 and has gained over 19 per cent in the past three sessions alone.

GRSE inks MoI for 4 hybrid-propelled vessels with German shipping major

In a regulatory filing on June 5, GRSE said it signed an MoI on June 4 with Germany-based Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG for building four follow-on 7,500 DWT multi-purpose vessels. These will be built at GRSE’s Kolkata shipyard and will incorporate hybrid propulsion systems and state-of-the-art cybersecurity features.

The German deal is seen as a continuation of GRSE’s existing contract for eight similar vessels, which are already under construction. The final contract is expected to be sealed by August 31, 2025. This marks a significant step in GRSE’s export-oriented growth strategy and strengthens its shipbuilding footprint in Europe.

MoU with Dubai-based Aries Marine for offshore expansion

GRSE also signed a major MoU with Aries Marine, a Dubai-headquartered offshore engineering and design firm. This partnership aims to jointly identify and develop offshore orders where GRSE will execute builds of platforms designed by Aries. The collaboration is expected to significantly boost GRSE’s presence in the offshore and oil & gas segments.

In its filing, the company emphasized that the partnership aligns with its ambition to tap into global markets with turnkey defence and offshore solutions.

MoU signed with global engine major

GRSE further confirmed the signing of a third MoU on June 4 with an undisclosed global engine manufacturer. While details of the partnership remain confidential, the move indicates GRSE’s efforts to strengthen its propulsion systems portfolio and technology capabilities.

Multibagger stock with over 2,100% return in 5 years

GRSE has proven to be a multibagger stock, delivering over 2,100 per cent returns in the last five years. Year to date, the stock has jumped over 100 per cent, making it one of the top performing defence stocks on Dalal Street.

With these strategic partnerships and a strong pipeline, analysts believe GRSE is poised for long-term growth in both domestic and international markets. The latest surge in GRSE share price reflects investor confidence in the company’s overseas expansion and order execution capabilities.

More to come…