Shares of Premier Explosives Ltd. are locked in an upper circuit of 20 percent today after the company won defence orders from the central government worth over Rs 550 crore.

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Premier Explosives said that the Indian Air Force, Ministry of Defence, has placed one order for the supply of chaffs worth Rs 292.11 crore (including GST), while another order worth Rs 260.15 crore (including GST) for the supply of flares.

Both the orders have to be executed within the timeframe of 12 months as per government orders, Premier Explosives said in a filing to the stock exchanges.

In a separate notification, the company also announced that the meeting of the board of directors is scheduled on July 19 to approve the unaudited financial results of the company for the quarter ended June 2023 (Q1 FY24).

Last week, Premier Explosives received two orders from the Ministry of Defence and Bharat Dynamics Ltd to the tune of Rs 86.5 crore.

The order from the defence ministry was for the supply of 50 mm MTV flares at the cost of Rs 76.8 crore. The order from Bharat Dynamics, meanwhile, was related to the supply of booster grains worth Rs 9.7 crore.

On Tuesday, other defence sector stocks like Mazagon Dock and Bharat Dynamics rallied up to 10 percent on reports that the Defence Procurement Board has approved a proposal to buy 26 Rafale fighters and Scorpene submarines for the Indian Navy.

Shares of Premier Explosives are trading 20 percent higher at Rs 530.95. This is the biggest single-day jump for the stock since November 2018.

First Published:Jul 11, 2023 1:49 PM IST