Shares of Bharat Heavy Electricals Ltd (BHEL) jumped 5% to hit a fresh 52-week high of ₹164.8 per piece on BSE on Wednesday after the company said it had signed a contract worth ₹2957 crore with the defence ministry.

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The stock has been on an upward swing since November 22, and has gained 14% in the last five trade sessions. It has gained 105% this year, so far. On Wednesday, BHEL said it had signed a contract with the defence ministry to supply 16 upgraded super rapid gun mount (SRGM) against a letter of intent (LoI) received by the company in March this year.

The ministry on Tuesday said it had entered into a contract with BHEL to procure 16 upgraded SRGM, with the associated equipment or accessories for Indian Navy. The contract has been signed under the Buy (Indian) category at a total cost of ₹2,956.89 crore, the release said.

The SRGMs will be manufactured at BHEL's Haridwar plant.

The project is slated to generate employment of 2.5 lakh mandays over a period of five years while bringing along and encouraging active participation of various Indian industries, which would also include the MSME sector.

The upgraded SRGMs will be installed onboard the Indian Navy's in-service and newly-built ships by Mazagon Dock and Shipbuilders Ltd, Mumbai, and Garden Reach Shipbuilders and Engineers, Kolkata.

Bharat Heavy Electricals Ltd (BHEL) shares were trading 4.55% higher at ₹163.15 per piece on BSE at 2:15pm.

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(Edited by : Shloka Badkar)

First Published:Nov 29, 2023 3:02 PM IST