Shares of NIBE Limited surged more than 5% in early trade after the company announced a major defence order from the Indian Army, operating under the Ministry of Defence. As of 9:38 AM, the shares were trading 5.87% higher Rs 1,309.40.
The order, valued at ₹292.69 crore inclusive of all taxes and duties, marks a significant milestone for NIBE’s growing presence in India’s defence manufacturing ecosystem. The company disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details of the Indian Army Contract
Under the terms of the agreement, NIBE will manufacture and supply ground equipment, accessories, ESP, and ammunition for a Universal Rocket Launcher System. The advanced system is designed to support multiple rocket variants, including long-range strike capabilities of up to 150 km and 300 km, highlighting its strategic importance for the Indian Army’s operational readiness.
The scope of work under this contract is strictly limited to manufacturing and supply, as specified in the agreement. No additional services or development responsibilities are included beyond the contracted deliverables.
Order Structure and Execution Timeline
The contract has been awarded by a domestic entity and does not involve any related-party transactions. NIBE has clarified that neither its promoter nor the promoter group holds any interest in the awarding entity, ensuring full regulatory compliance and transparency.
As part of the contractual obligations, NIBE will furnish a performance-cum-warranty bank guarantee equivalent to 10% of the total contract value within 30 days of signing. Execution of the order will take place in multiple tranches over a 12-month period, with deliveries scheduled as per the mutually agreed timeline.
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