Shares of Punj Lloyd surged 12.5 percent and Bharat Electronics (BEL) gained 1.8 percent intraday Friday after Indian Army shortlisted both companies for a defence contract.
"The Indian Army has shortlisted state-run Bharat Electronics and private player Punj Lloyd for a USD 100 million project to upgrade its ageing Zu 23 2B air defence guns in a selection process that has been on for over four years," said a media report quoting unnamed sources.
"While five companies had initially taken part in the competition, three did not make it past the technical evaluation, leaving only Punj Lloyd and BEL in the fray. Commercial bids for contract are likely to be opened within the next six months," it added.
Punj Lloyd is a diversified conglomerate, owing to foray into aviation, defence and upstream, through its subsidiaries and joint ventures. Bharat Electronics is an Indian state-owned aerospace and defence company.
At 10:40 hours IST, the scrip of Punj Lloyd was quoting at Rs 28.95, up Rs 2.45, or 9.25 percent and Bharat Electronics was up 1.10 percent at Rs 3,692.50 on the Bombay Stock Exchange.
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