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Premier Explosives surges 37% in three days on receiving arms license

The stock moved higher by 19% to Rs 280, surging 37% in past three days on the BSE, after the company said it obtained arms license for manufacture of propellants, ammonium perchlorate and HTPB

SI Reporter  |  Mumbai 

Two Islamic State suppliers doubled in value in two years

Shares of (PEL) have moved 19% higher to Rs 280 per share on Wednesday, surging 37% in past three days on the BSE, after the company obtained arms license for manufacture of propellants, and

“We have received arms license from Arms License Issuance Authority, Department of Industrial Policy and Promotion (DIPP) for manufacture of propellants, and at Routhusurmala village, Chittoor district, Andhra Pradesh,” said in a regulatory filing on Monday, November 19, 2018.

This license will help the company to manufacture and supply solid to meet the requirements of ISRO-SHAR satellite launches. are fuel for satellite launch vehicles and other two items are raw materials for The said license has a lifetime validity period, the company said.

Earlier, on November 9, 2018, the company announced that it had received arms license for manufacture of medium calibre ammunition (20mm to 57mm), large calibre ammunition (APFSDS and BMCS), sub-assemblies for ammunition, single base/bouble base/triple base / multi base propellants and RDX & HMX and compounds thereof at its Greenfield Katepally plant.

PEL is the first private entity in India manufacturing and supplying solid propellants for prestigious missiles like Akash, Astra, LRSAM, MRSAM, QRSAM, NGARM, RRM, ATI etc. Further in FY17 the company has entered Indian Space programme as an approved supplier of PSOMXL Motor for use in the Polar Satellite Launch Vehicle (PSLV), to ISRO.

The company in the annual report said the recent release of Draft Defence Production Policy 2018 contains helpful guidelines that promote indigenization and private sector participation in building defence ecosystem which augurs well for the company’s business.

However, thus far in the calendar year 2018, PEL underperformed the market by falling 53%, as compared to a 4% rise in the S&P BSE Sensex till Friday.

At 02:58 PM; the stock was trading 16% higher at Rs 273 on the BSE, as compared to 0.67% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 312,161 equity shares changed hands on the BSE and NSE so far.

First Published: Wed, November 21 2018. 15:01 IST