Shares of Cochin Shipyard Limited rallied more than 6% in early morning trade on Tuesday after the company announced that it has been declared the lowest bidder (L1) for a major defence contract from the Ministry of Defence.
In an exchange filing, the state-run shipbuilder said that at a meeting held in New Delhi, it was declared L1 in the tender floated by the Ministry of Defence for the construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The estimated total order value of the project is around ₹5,000 crore.
The contract involves the design and construction of five advanced survey vessels that will support the Indian Navy’s hydrographic and maritime operations. These vessels are expected to enhance the Navy’s capabilities in coastal and deep-sea survey missions.
The company clarified that the final award of the contract is subject to the satisfactory completion of necessary formalities. A formal announcement regarding the signing of the contract will be made in due course.
Cochin Shipyard also stated that none of its promoters, promoter group entities, or group companies have any interest in the awarding authority. The order does not fall under the purview of related party transactions, the filing added.
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