Hindustan Aeronautics (HAL) share price surged over 10 percent intraday on January 14, a day after the government approved Rs 48,000-crore deal to acquire 83 Tejas aircraft from the company.
The Cabinet Committee on Security chaired by Prime Minister Narendra Modi approved a Rs 48,000-crore deal for the purchase of 83 Light Combat Aircraft Tejas from the state-run aerospace behemoth.
Union Defence Minister Rajnath Singh announced on Twitter that it was the largest-ever procurement deal in the indigenous military aviation sector.
"The LCA-Tejas is going to be the backbone of the IAF fighter fleet in years to come," Singh said. "The indigenous content of LCA-Tejas is 50 percent in Mk1A variant which will be enhanced to 60 percent," he said.
Singh also said HAL has already set up a second line manufacturing facilities at its Nasik and Bengaluru divisions.
The Indian Air Force in 2017 issued the request for proposal (RFP) to HAL for the procurement of 83 Tejas light combat aircraft.
The stock was trading at Rs 1,014.00, up Rs 93.10, or 10.11 percent, at 1324 hours. It has touched an intraday high of Rs 1,047 and an intraday low of Rs 967.50.
The scrip also witnessed a spurt in volume by more than 6.96 times and was trading with volumes of 374,105 shares, compared to its five-day average of 38,711 shares, an increase of 866.39 percent.