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) soared by almost 5 per cent on Thursday, June 5, reaching an all-time high of Rs 3,520 in BSE intraday trade. The rally comes after the defence PSU announced that it has entered into several strategic partnerships, including a memorandum of intent (MoI) with a German firm and two new memorandums of understanding (MoUs) with global companies. The GRSE shares opened at Rs 3,399 and have climbed more than 19 per cent over only the last three sessions. 

What is the MoI about?

In a filing to the exchange on June 5, GRSE wrote it signed an MoI on June 4 with Germany-based Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG to construct four follow-on 7,500 DWT multi-purpose vessels. These vessels will be constructed in unison at the GRSE Kolkata shipyard utilizing hybrid propulsion and enhanced cyber security capabilities. 

This German contract is seen as an expansion of GRSE’s current contract for eight vessels of similar capacity, which is already underway. The final contract is expected to be executed late in the second quarter of FY2026, on or before August 31, 2025. This is a key decision for GRSE as it helps expand its export-oriented growth strategy in conjunction with the expansion of its shipbuilding presence in Europe. 

MoU with Dubai-based Aries Marine for offshore expansion

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.

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…