State-owned Garden Reach Shipbuilders and Engineers Ltd (GRSE) is set to win a ₹5,400-crore order from the Navy to build eight anti-submarine warfare (ASW) corvettes. The contract is seen to boost its share value during its proposed IPO.

Kolkata-based GRSE was the second lowest bidder in a tender issued by the Navy to build 18 ASW corvettes, an order that would be split equally between two yards. The second lowest bidder will have to match the lowest bid to win the order for eight corvettes.

While Cochin Shipyard emerged the lowest bidder, the contract for the balance eight ships will be awarded to GRSE at the price quoted by the lowest bidder, said officials briefed on the tender.

GRSE was also the lowest bidder to build four survey vessels for the Navy worth ₹2,080 crore.

In April 2017, the Cabinet Committee on Economic Affairs had approved the listing of 11 State-run firms including GRSE and Mazagon Dock Shipbuilders Ltd through an IPO wherein the government will sell 25 per cent of its shareholding.

GRSE, a Mini Ratna PSU under the Defence Ministry, has five units in and around Kolkata and a diesel engine plant in Ranchi.