Defence stocks were trading in the green following the product launches and MoUs and agreements at the Aero India 2023 event in Bengaluru.
Pune-based forging company Bharat Forge Ltd on Thursday announced that it has signed a memorandum of understanding (MoU) with global aerospace and technology major Paramount Group on the sidelines of the Aero India Show 2023, in Bengaluru.
The MoU has been signed between the two companies for collaboration for development and production of composite rotor blades, mission systems and stores management systems for medium lift helicopters. Bharat Forge informed the exchanges that the MoU was signed by the company’s CEO (Aerospace) Guru Biswal and Paramount Group’s SVP Clifford Dewell on February 15, 2023.
“We are excited to expand our collaboration (with Bharat Forge) into the aerospace sector. We have confidence that this initiative will leverage the unique synergies of our joint capabilities to meet the requirements for these systems for Medium Lift Helicopters in India and across the globe,” Dewell said.
Biswal said the MoU with Paramount is a testimony of the company's commitment to work for an ‘Atmanirbhar Bharat’, to create technologies that are niche and shall support Indian and global requirements.
After the announcement, shares of Bharat Forge were trading at Rs 856.80 apiece, up 2.6 percent, on BSE at 12:13 PM on Thursday.
Till February 15, Aero India witnessed 266 partnerships having potential to unlock business worth around Rs 80,000 crore. As many as 266 partnerships including 201 Memorandum of Understandings, 53 major announcements and nine product launches were firmed up at the Aero-India that could unlock business potentials worth around Rs 80,000 crore.
HAL and BEL, both said they were seeing a strong order pipeline at the event. They said a lot of interest was shown by foreign Original Equipment Manufacturers to partner with the Indian companies. Bharat Electronics Ltd (BEL) was also looking to sign more than 20 MOUs at the event. It also signed an MoU with Israel Aerospace Industries (IAI) for the domestic manufacture and supply of its Long Range Artillery Weapon System (LORA) for the Indian Tri-services.
Hindustan Aeronautics Ltd also signed multiple agreements at the event. It entered into a deal with General Atomics Aeronautical Systems Inc. (GA-ASI) for providing MRO support for turbo-propeller engines. HAL will be jointly developing the engines for the 13-ton IMRH (Indian MultiRole Helicopter) and its naval version DBMRH (Deck Based Multi-Role Helicopter) with Safran Helicopter Engines.
Bharat Dynamics Ltd also launched the vertically-launched short range surface-to-air missile as well as the semi-active laser seeker based anti-tank guided missile.
Shares of Bharat Forge were trading 3.3 percent higher around 2.40pm, while those of Bharat Dynamics and HAL were 9.3 percent and 8.5 percent higher.
Meanwhile, Bharat Heavy Electricals Ltd's shares were also trading 1.7 percent higher, even though there weren't any pacts reported yet.
