Shares of Cochin Shipyard Limited surged more than 3% on March 31 after the company signed a contract to build ships for the Ministry of Defence. Garden Reach Shipbuilders also jumped on orders received.

“We would like to inform you that today, March 30, 2023, Cochin Shipyard Limited (CSL) signed a contract with the Ministry of Defence in New Delhi for the construction of the above vessel at a total value of Rs 9,804.98 crore,” said Cochin Shipyard said in a regulatory filing.

Cochin Shipyard has become the L1 bidder in a tender to build six Next Generation Missile Vessels (NGMV).

The company added that the first vessel would be delivered within 48 months and the last within 108 months.

The stock was up 3.15% at Rs 473.75 on the BSE as of 10 am.

Garden Reach Shipbuilders & Engineers has also contracted with the Ministry of Defence to build four Next Generation Offshore Patrol Vessels (NGOPV). The total project cost for 4 GRSE vessels is approximately Rs 3,500 crore.

The first vessel will be delivered within 44 months of contract signing, with subsequent vessels delivered every six months.

The NGOPV has a length of 110 meters (approx.), a displacement of approximately 2900 tons and a maximum speed of over 23 knots. NGOPV should be able to fulfil roles such as Seaward Defence, “Out of Area” Contingency Operations (OOAC), Non-combatant Evacuation Operations (NEO), Convoy Operations/Counter-Piracy Missions, Anti-Infiltration Operations, Anti-Poaching/Trafficking, HADR, Search and rescue missions, hospital ships, fleet maintenance support and COMINT ships.

Shares of Garden Reach Shipbuilders rose 6% to Rs 460 on the BSE.