Shares of Hindustan Aeronautics (HAL) and Larsen and Toubro (L&T) were gaining on Friday after the two firms bagged major orders from the Indian Ministry of Defence as part of five major capital acquisition contracts.
What Happened: The agreements are worth worth ₹39,125.39 crore in total and involve three companies: HAL, L&T and BrahMos Aerospace Private.
HAL has been contracted for the procurement of aero-engines for MiG-29 aircraft for ₹5,249.72 crore. L&T inked two contracts for the procurement of a close-in weapon System and a high-power radar for ₹7,668.82 crore.
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The remaining two contracts were signed with BrahMos Aerospace for the procurement of BrahMos missiles and a ship-borne BrahMos system for the Indian Defence Forces.
“These deals will further strengthen indigenous capabilities, save foreign exchange and reduce dependency on foreign origin equipment manufactures in future,” the Ministry of Defence said in a press release, referring to the Make-in-India initiative.
Price Action: HAL’s share price jumped 2.11% to ₹3,149.05 in afternoon trade on Friday while L&T’s shares gained 5.05% to ₹3,653.10.
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