The share prices of defence companies gained an upward direction on Monday after the Indian Army invited a tender to procure weapons, drones, and vehicles among other defence equipment on an emergency basis.
On Sunday, the Indian Army tweeted, “In keeping with its commitment to fight the future wars with indigenous solutions, the Indian Army invites Indian defence industries to offer critical defence equipment including guns, missiles, drones, counter-drones, loiter munition, communication and optical systems, specialist vehicles, engineering equipment and alternate energy resources.”
Later a day, Apollo Micro Systems, a small-cap defence company, increased by roughly 19 per cent to Rs 178.75. Mishra Dhatu Nigam (Midhani) increased by more than 8 per cent to reach a new 52-week high of Rs 233.15, while Data Patterns (India) increased by 7 per cent to reach a new record high of Rs 1,266.35.
Early trading hours saw increases of 6 per cent for PSU heavyweight Bharat Dynamics (BDL) and smallcap defence firm Rosell India before gains were partially slowed. Each Zen Technologies, Paras Defence, Space Technologies and Garden Reach Shipbuilders & Engineers saw a 4 per cent increase.
Bharat Electronics (BEL) and Hindustan Aeronautics (HAL), two other state-owned defence industry companies, were also trading about 2 per cent higher.
However, the Army said, “The process will be based on compressed timelines, wherein the procurement window will be open to Indian industry for six months and the industry would be expected to deliver equipment within one year of signing the contract. Procurement cases will be based on an open tender enquiry.”