Punj Lloyd surges as DIPP clears pending defence deals

The company's proposal was among the 33 defence deals cleared by the DIPP

Shares of Punj Lloyd were up over 6% at Rs 38 after the Department of Industrial Policy and Promotion (DIPP) under ministry of commerce and industry cleared 33 big ticket defence deals, out of which 19 proposals were related to foreign direct investment (FDI).

Some of the large scale defence deals that were given a go-ahead by DIPP, the nodal agency for FDI, were by Reliance Aerospace, Bharat Forge, Mahindra Telephonic Integrated Systems Ltd, Punj Lloyd Industries, Mahindra Aero Structure Pvt Ltd and Tata Advanced Materials Ltd among others.

Out the 33 pending defence applications, 14 proposals got delayed due to licensing issues. However, the applicants have now been informed that the licenses are not required anymore as a large number of defence items have been delicensed by the government recently.

The stock opened at Rs 37.70 and touched a high of Rs 39.40 so far. Over 2.8 million shares were traded on both the stock exchanges so far.