Bharat Dynamics jumps after signing licensing agreement with DRDO

Bharat Dynamics rose 3.25% to Rs 417.50 at 9:50 IST on BSE after the company said it signed licensing agreement with DRDO for Astra MK-1 Weapon System.

The announcement was made after market hours yesterday, 18 April 2018.

Meanwhile, the S&P BSE Sensex was up 91.38 points, or 0.27% to 34,423.06.

On the BSE, 36,000 shares were traded in the counter so far compared with average daily volumes of 35,000 shares in the past two weeks. The stock had hit a high of Rs 421.90 so far during the day, which is also a record high for the counter. The stock had hit a low of Rs 407 so far during the day. The stock hit a record low of Rs 360 on 23 March 2018.

Bharat Dynamics said it signed licensing agreement with Defence Research Development Organisation (DRDO) for ASTRA MK-1 Weapon System. Limited scale of production will commence shortly on suitable arrangements from DRDO.

Shares of Bharat Dynamics entered stock market on 23 March 2018. The stock listed at Rs 360 on BSE, a discount of 15.89% to its initial public offer (IPO) price of Rs 428 per share. On that day, it settled at Rs 390.70 on BSE, a discount of 8.71% to its issue price.

The IPO of state-run defence equipment maker Bharat Dynamics saw a subscription of 1.3 times. The price band for the issue was Rs 413 to Rs 428 per share.

Bharat Dynamics reported net profit of Rs 172.59 crore on revenue of Rs 1805.68 crore for the six months ended September 2017.

State-run Bharat Dynamics is a leading defence public sector undertaking company engaged in the manufacture of surface-to-air missiles (SAMs), anti-tank guided missiles (ATGMs), underwater weapons, launchers, countermeasures and test equipment. The company primarily caters to the requirements of the Indian armed forces.

Powered by Capital Market - Live News