The stock price of Cochin Shipyard Ltd. surged on Tuesday after the Ministry of Defense announced that the state-run shipbuilder emerged as the lowest bidder (L1) for a major Indian Navy project.
The company’s share gained as much as 7.2% to Rs 1,574.5 on the National Stock Exchange of India (NSE). This comes amid bearish sentiments for the equities market marked by the Nifty 50 seeing a decline of 0.1%. Cochin Shipyard’s stock also rose by 27% over the last 12 months.
₹5,000 Crore Order
The stock rallied after the company’s announcement that it was declared the lowest bidder in a tender floated by the Ministry of Defense for the construction of five Next Generation Survey Vessels (NGSV). Cochin Shipyard said that the order is worth ₹5,000 crore.
Deal Still Subject to Necessary Formalities
Despite the promising developments, the company clarified that the deal is not yet final since it is still required to comply with requirements.
“The final announcement of the contract will be subject to the satisfactory completion of necessary formalities in this regard, which will be updated in due course,” Cochin Shipyard said in a regulatory filing.
The shipmaker also recently secured an order from the Polestar Maritime to build two electric green tugs — vessels designed to replace conventional diesel-powered tugs, under the government’s Green Tug Transition program.
“The vessels will be equipped with battery-electric propulsion and will deliver zero direct emissions during harbour operations. The batteries will be sourced domestically, underscoring CSL’s
commitment to ‘Make in India’,” the company said in a statement.
The firm is scheduled to deliver the boats in August and September 2026.
Source: https://coinpaper.com/14671/cochin-share-price-up-by-over-7-after-emerging-as-lowest-bidder-for-major-indian-navy-project
