The shares of Bharat Forge rise 4 percent in the last half hour of trade on July 27, after the company informed the stock exchanges that it received approval to participate in potential defence programs in future.
The license is granted by the Ministry of Home Affairs under Arms Rules, 2016. This approval is for small arms and its ammunition.
Bharat Forge serves several sectors including Automotive, Railways, Aerospace, Marine, Oil & Gas, Power, Construction and Mining. It is among the largest forging companies globally.
The significant stride taken by the Government in recent years towards self-reliance with the preparation of positive indigenization list has opened huge opportunities for Indian players. Bharat Forge is a beneficiary of this defence indigenisation and established multiple capabilities in defence manufacturing, catering to the Indian and Global Armed Forces.
The company has moved towards consolidation of Defence and Aerospace businesses under Kalyani Strategic System Ltd, a 100 percent subsidiary of Bharat Forge. With this, it targets better opportunities in defence manufacturing for the Indian market as well as for exports.
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