Hindustan Aeronautics soared high today, hitting a new 52-week high at Rs.1126, a surge of over 10.5%, with volumes rising over 2 times. Its 20% UC for the day stands at Rs.1222.20.
The stock price has reacted to the news that the Ministry of Defence (MoD) gave its approval under the 'Make in India' campaign, of equipment worth Rs 8,722 crore of which 60% order is going to HAL.
Its approved buying 106 basic trainer aircraft (BTA) from HAL to address the basic training requirements of the IAF. Post certification, 70 BTA will be initially procured from HAL and balance 36 after operationalisation of HTT-40 fleet in IAF.
HAL’s HTT-40 is in the final stages of spin trial and it has already started production planning.
News is that the IAF was looking at Switzerland for acquiring 38 more Pilatus PC-7 Mark II basic trainers. But encouraged by the success of HAL’s HTT-40, the shift turned within, to India itself.
HAL’s one HTT-40 cost is rumoured to be around Rs.50 crore and the total cost of acquiring 106 would mean HAL’s total order is for Rs.5300 crore.