Shares of Hindustan Aeronautics Ltd. surged 14% to Rs 1048 apiece on Thursday after the Cabinet approved procurement of Tejas aircraft for the Indian Air Force.
The Cabinet has given an approval to procure 73 Tejas Mk-1A fighter aircraft and 10 Tejas Mk-1 trainer aircraft. The total cost for the aircraft will be Rs 45,696 crore, along with design and development sanctions worth Rs 1,202 crore, PIB said in a press release.
Rising for the second straight session, the stock price of Hindustan Aeronautics opened with a gain of 10.11% today at Rs 68.40 today and gained by 13.69% to the day's high of Rs 1,047, as against the last close of Rs 920.90. The stock also touched a low of Rs 967.50 on BSE in early session.
HAL stock has risen 12% in the last 2 days of consecutive gains.
HAL stock stands higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages.
Hindustan Aeronautics stock price has gained 8% in one week. Year-to date, the stock has gained by 19%.
Market capitalisation of Hindustan Aeronautics stood at Rs 33,739.70 crore today. The stock has touched a 52 week high of Rs 1,423.55 and a 52-week low of Rs 448. Share of HAL, with Rs 10 face value has risen 15% in a month and 17% in one year.
"The manufacturing of light combat aircraft by Hindustan Aeronautics will give a further push to Atmanirbhar Bharat initiative and boost indigenisation of defence production and the defence industry in the country," it added.
As per the statement, around 500 Indian companies, including micro, small and medium enterprises in the design and manufacturing sectors, will be working with HAL in this procurement.
Defence Minister Rajnath Singh also tweeted on Wednesday that the LCA-Tejas programme will act as a catalyst for transforming the Indian Aerospace manufacturing ecosystem.
HAL share closed 9.57% higher today at Rs 1,009 on BSE.