Small Cap Stock Hits Upper Circuit After Licensing Deal With DRDO

Shares of Nibe Ltd. that were trailing on Thursday morning jumped up sharply after the announcement was made.

What Happened: The company on Thursday informed the exchanges that it had made two licensing deals with the Defence Research and Development Organization. DRDO grants a non-exclusive license for 10 years from the date of its execution to utilize the technology for the manufacture of Solar Heated Shelters in India and for sale in the licensing region.

See Also: Tata Stock Slumps As Brokerage Downgrades Rating From ‘Buy’

The other licensee is granted for Expandable Mobile Shelters for manufacture in India for end use/ supply to Armed Forces etc. It is also a non-exclusive license for 10 years. The company will pay a royalty for the technology transfer to DRDO as may be mutually decided between both parties.

The announcement helped the stock bounce back after it crashed on Wednesday to hit the lower circuit. The stock surged up 5% today to hit the upper circuit at ₹1,529.25.

Price Action: Nibe shares were trading 1.62% higher at ₹1,480 in early trade on Thursday.

Read Next: How To Check Owais Metal IPO Allotment Status