Tug-building deal with Bangladesh Navy lifts Indian shipbuilder's shares

Shares of an Indian warship builder jumped Monday after announcing that it signed a $21 million contract to make an advanced ocean-going tug for Bangladesh Navy.

The vessel builder, Garden Reach Shipbuilders & Engineers Ltd (GRSE), under the control of India's defence ministry, saw the prices of its shares going up from INR 2,099 on June 28 to close at INR 2,306 on July 1, posting a 9.86 percent gain after the announcement.

Today, its shares soared to as high as INR 2,473.95 at 9.25 am in intraday trade before paring down the gains on the National Stock Exchange (BSE).

GRSE said the tug would be primarily used in towing ships at sea, both alongside and astern, assisting them during berthing and casting off, and aiding in turning through pushing and pulling.

Its secondary roles would be to provide firefighting support to ships at sea and take pollution control measures on a limited scale.

The vessel will be nearly 61 metres long and 15.80 metres wide, with a maximum speed of at least 13 knots when fully loaded, according to the statement by the company issued from Kolkata yesterday.

The vessel would also have the capacity to carry out rescue and salvage operations at sea.

It would be equipped with advanced computer-controlled system that allows a ship to maintain its heading and position without the use of mooring lines or anchors, said the GRSE.

The ocean-going tug will be delivered to Bangladesh within 24 months as per the contract, according to information given by GRSE to the Indian National Stock Exchange.

A few weeks ago, GRSE had signed another contract with Bangladesh for delivery of a Trailing Suction Dredger, according to the press release.