Shares of Bharat Electronics Ltd soared 2% on 25 November after the company signed a joint venture (JV) collaboration deal with France-based Safran Electronics and Defence to produce Highly Agile Modular Munition Extended Range (HAMMER) smart precision guided air-to-ground weapons in India.

The joint venture agreement was inked on Tuesday.  It formalises the Memorandum of Understanding (MoU) signed by the two firms in February of this year during Aero India, according to BEL’s social media handle “X”.

Both corporations will have an equal interest in the JVC. According to a statement by the Ministry of Defence, HAMMER would be manufactured, supplied, and maintained locally to satisfy the operational demands of the Indian Air Force and Indian Navy.

HAMMER is a combat-proven precision-guided weapon system with excellent accuracy and a modular architecture that allows it to be used on a variety of platforms, including the Rafale and Light Combat Aircraft Tejas, the company stated.

According to the announcement, indigenisation would gradually climb to 60%, with essential sub-assemblies and mechanical parts manufactured domestically. Production will be transferred in stages, with BEL in charge of final assembly, testing, and quality assurance, according to the statement.

At 1:05 pm, the shares of Bharat Electronics were trading 1.78% higher at Rs 411 on NSE. 

Tired of missing hot stocks? Unicorn Signals provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!