(You can now subscribe to our(You can now subscribe to our ETMarkets WhatsApp channelShares of Mazagon Dock Shipbuilders (MDL) rose 4.3% to the day’s high of Rs 4,065 on BSE as the defence company is in discussions with the Ministry of Defence for a potential Rs 35,000 crore deal for acquiring additional Kalvari-class (Scorpene) submarines for the Navy.MDL has submitted a detailed techno-commercial bid for the contract to the defence ministry, which has promised at least 60% indigenous content in the new boats, with a large chunk of the work going to Indian sub-suppliers and the MSME sector.The new submarines, three additional Kalvari-class which are under negotiation, will be larger than their predecessor and will be packed with modern electronics that will give them better strength and longer endurance, sources told ET.While the final pricing will be determined after hard negotiations between MDL and the ministry, the deal could be valued at around Rs 35,000 crore, sources quoted to ET, adding that this would be in line with international prices for new submarines of the class.Additionally, the order is also expected to create close to 5,000 jobs over the years and a major part of the contract value will remain within the Indian ecosystem.MDL is currently constructing the Kalvari class of submarines under Project 75 with French assistance, with the sixth and final one likely to be delivered by the end of this year.
As per MDL's proposal, the additional submarines can be delivered within six years.Further, another defence stock Garden Reach Shipbuilders & Engineers (GRSE) rallied about 8.5% today to day’s high of Rs 1,783.55 on BSE as the company won an international contract worth around $54 million to construct and deliver four multi-purpose vessels of 7,500 DWT each, to Carsten Rehder Schiffsmakler and Reederel GmbH & Co, KG Germany.Both stocks, i.e, MDL, as well as GRSE, have given multibagger returns of over 200% to their investors in the last 2 months.
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Shares of Mazagon Dock Shipbuilders (MDL) rose 4.3% to the day’s high of Rs 4,065 on BSE as the defence company is in discussions with the Ministry of Defence for a potential Rs 35,000 crore deal for acquiring additional Kalvari-class (Scorpene) submarines for the Navy.MDL has submitted a detailed techno-commercial bid for the contract to the defence ministry, which has promised at least 60% indigenous content in the new boats, with a large chunk of the work going to Indian sub-suppliers and the MSME sector.The new submarines, three additional Kalvari-class which are under negotiation, will be larger than their predecessor and will be packed with modern electronics that will give them better strength and longer endurance, sources told ET.While the final pricing will be determined after hard negotiations between MDL and the ministry, the deal could be valued at around Rs 35,000 crore, sources quoted to ET, adding that this would be in line with international prices for new submarines of the class.Additionally, the order is also expected to create close to 5,000 jobs over the years and a major part of the contract value will remain within the Indian ecosystem.MDL is currently constructing the Kalvari class of submarines under Project 75 with French assistance, with the sixth and final one likely to be delivered by the end of this year. As per MDL's proposal, the additional submarines can be delivered within six years.Further, another defence stock Garden Reach Shipbuilders & Engineers (GRSE) rallied about 8.5% today to day’s high of Rs 1,783.55 on BSE as the company won an international contract worth around $54 million to construct and deliver four multi-purpose vessels of 7,500 DWT each, to Carsten Rehder Schiffsmakler and Reederel GmbH & Co, KG Germany.Both stocks, i.e, MDL, as well as GRSE, have given multibagger returns of over 200% to their investors in the last 2 months.
