Smallcap defence stock rise on emerging lowest bidder for PSU orders

Shares rise on winning order.

Shares of Hyderabad-based Apollo Micro Systems gained on Thursday after it emerged as the lowest bidder for orders from defence public sector undertakings (PSUs) and the Defence Research and Development Organisation (DRDO).

In a regulatory filing, the company said it has been declared the lowest bidder by DRDO for orders worth Rs 43 million and by defence PSUs for orders valued at Rs 349.7 million. The total value of orders where the company has emerged as the lowest bidder stands at Rs 392.7 million, it added.

The company further informed that it has received approval from DRDO for the Transfer of Technology (ToT) of Mechatronic Fuze for grenades.

Apollo Micro Systems operates in the aerospace and defence sector and also serves industries such as infrastructure, transportation and railways.

Shares of the company traded at Rs 292.20 per share on the NSE, up 0.36 percent.

Meanwhile, the equity benchmark indices Sensex and Nifty rose on Thursday, tracking a rally in global markets amid US Fed rate cut hopes. Fresh foreign fund inflows also added to the markets' optimism during the initial trade. The Sensex jumped 407.67 points to 83,013.10, while the Nifty surged 104 points to 25,427.55.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.