Shares of Hindustan Aeronautics skyrocketed and hit a 52-week high of Rs 2,500 on 1 December after it received approval from the Defence Acquisition Council to procure light combat helicopters for the Air Force and the Army.

In its regulatory filing on 30 November, the company said that the Defence Acquisition Council accorded Acceptance of Necessity (AoN) for various capital acquisition proposals that amount to Rs 2.23 lakh crore, from which acquisitions worth Rs 2.2 lakh crore are to be sourced from domestic industries.

The company received an AoNs for procuring Light Combat Helicopters for the Indian Air Force and Indian Army and procuring Light Combat Aircraft Mk 1A for the Indian Air Force under the Buy Indian-IDDM category. The company has also received an AoN for the upgrade of the Su-30 MKI aircraft.

The government said, “This will give a substantial boost to the Indian defence industry towards the aim of achieving the goal of ‘Aatmanirbharta’.”

To further maximise indigenisation, the Defence Acquisition Council has given the nod for a major amendment in the Defence Acquisition Procedure 2020. The council has passed that from now on, in all categories of procurement cases, a minimum of 50% of the indigenous content shall be in the form of material, components, and software that are manufactured in India.

At 12:31 pm, the shares of Hindustan Aeronautics were trading 3.84% higher at Rs 2,471.25 on NSE.