Shares of Hindustan Aeronautics Limited (HAL) were climbing on Tuesday as the defence contractor received a major request for proposal from the Defence Ministry for 156 homegrown light combat helicopters, valued at ₹45,000 crore.

What Happened: HAL will submit a price quote to the Ministry of Defence, followed by cost negotiations to finalise the deal. Once the terms are set, the agreement requires approval from the Cabinet Committee on Security before it can be officially signed.

Previously, the Army and the IAF had procured 15 limited series production variants of the LCH in March 2020, costing ₹3,887 crore, with infrastructure support worth ₹377 crore. This new order for 156 helicopters was greenlit by the Defence Acquisition Council last November.

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In addition, the Army is preparing to receive its first batch of AH-64E Apache attack helicopters, with six units scheduled for deployment in the desert sector starting in May.

Defence stocks have been rallying lately following the National Democratic Alliance’s return to power in hopes of continued strong defence spending. Returning Defence Minister Rajnath Singh has said that India will aim to more than double its defence exports to ₹50,000 crore over the next five years.

Price Action: HAL’s share price was up 5.28% at ₹5,475 in early morning trade on Tuesday.

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