Shares of HFCL Ltd rose over 4% on September 12 after Andhra Pradesh government allotted 1,000-acre land for setting up defence manufacturing facilities.
"... the proposal of the Company for allotment of 1,000 acres of land in Madakasira Mandal, Sri Sathya Sai District, has been approved by the State Investment Promotion Board, for the purpose of setting up defence manufacturing facilities," said HFCL in a stock exchange filing on September 11.
In Phase-I, Andhra Pradesh Industrial Infrastructure Corporation Limited, an industrial infrastructure agency of the Government of Andhra Pradesh, will allot 329 acres of land. In Phase II, an additional 671 acres of land will be allotted by APIICL, said the company.
The proposed facilities will include manufacturing of Artillery Ammunition Shells, TNT filling and MultiMode Hand Grenades (MMHG), among other defence products.
At 12:45 pm on September 12, HFCL shares were trading 4.4% higher at Rs 73.27 apiece. The 52-week low of the stock is Rs 68.56 and 52-week high is Rs 171. The market capitalisation of the stock is nearly Rs 10,600 crore.
"This allotment of land aligns with the Company’s strategic growth objectives and will enable further expansion of its footprint in the Defence sector," said the company.
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