Stockgram

State-run defence company Garden Reach Shipbuilders Ltd. has emerged as the lowest bidder for an Indian Navy Project, it said in an exchange filing on Thursday, May 22.





The company noted that the it has become the lowest bidder for the construction of Next Generation Corvettes for the Indian Navy. The lowest bidder will be awarded five NGC ships and the order is valued at over ₹25,000 crore.





Garden Reach emerged as the lowest bidder when bids were opened during the Commercial Negotiation Committee meeting convened by the Ministry of Defence.





The management had highlighted about the Next Generation Corvette project during its earnings call earlier this week.





Garden Reach had highlighted that the total order size is likely to be ₹40,000 crore, which will be split between two shipyard companies. The shipyard, which emerges as the lowest bidder, was likely to receive ₹25,000 crore worth of orders.





The company also said during the earnings call that it intends to increase its shipbuilding capacity from 24 to 28 ships by the end of 2025.





Defence stocks have been on an upward trajectory after Operation Sindoor after which, Prime Minister Narendra Modi called for more defence equipment that is Made in India.





Shares of Garden Reach Shipbuilders have surged to the highs of the day, currently trading 9.4% higher at ₹2,736. The stock is closing in on its 52-week high of ₹2,833, having risen over 50% in the last one month.