Share of Hindustan Aeronautics Limited (HAL) was trading in the green and 2% higher on 13 December after the company announced signing a contract with the Ministry of Defence (MoD) for the purchase of 12 Sukhoi Su-30 MKI aircraft and related equipment at an estimated cost of Rs 13,500 crore, including taxes and duties.

In an exchange filing, Hindustan Aeronautics Limited said, “We wish to inform you that a contract for procurement of 12 Su-30 MKI aircraft along with associated equipment has been signed between the Ministry of Defence and Company at an approximate cost of Rs.13,500 Crore inclusive of taxes and duties.”

The Nasik division of HAL will produce the aircraft. The delivery of these aircraft would improve the Indian Air Force’s operating capacity and fortify the nation’s defence readiness, according to Hindustan Aeronautics Limited.  

According to Hindustan Aeronautics Limited, the aircraft would have 62.6% Indigenous content, which will be increased because many of its components will be made in India by the defence sector.
 
Hindustan Aeronautics Limited, founded in 1940 and based in Bangalore, is the biggest aerospace and defence firm in India and among the biggest and oldest in the world. 

The operations of Hindustan Aeronautics Limited include the production of aircraft, helicopters, and their parts. Notable products include the Tejas light combat aircraft, the Dhruv advanced light helicopter, and the Hindustan Ambassador automobile.

In addition, the company designs and develops new products, updates them, and repairs and overhauls helicopters and airplanes. HAL also produces important satellite components. 

The Indian Ministry of Defence oversees HAL, which has facilities spread throughout several Indian cities, including Hyderabad, Kasaragod, Koraput, Korwa, Kanpur, and Nasik.

At 12:01 pm, the shares of Hindustan Aeronautics were trading 0.90% higher at Rs 4,702.60 on NSE.

Feeling overwhelmed by the markets? Let Unicorn Signals be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!