Axiscades Tech arm secures DRDO contract for Su-30MKI upgrade; Stock rises nearly 5%

Shares of Axiscades Technologies Ltd. surged nearly 5% on Monday, September 1, after the company said its subsidiary Mistral Solutions secured a development contract from DRDO, the Ministry of Defence, to upgrade the Su-30MKI fighter aircraft.The contract has been secured from Combat Aircraft Systems Development and Integration Centre (CASDIC), the company informed the stock exchanges. The contract entails the design and development of 10 Electronic Control Units (ECUs) for the aircraft’s cooling system, Axiscades Technologies said.

This prototype development phase, valued at around ₹3 crore (excluding GST), is scheduled to be completed within 18 months.

Following successful development, the order will transition into the production stage with a forecast requirement of 600 units, estimated at ₹150 crore over a three to five-year period, the company added.
Earlier in August, Axiscades announced that its wholly-owned subsidiary, Axiscades Aerospace and Technologies Pvt Ltd, signed a contract worth ₹223.95 crore with the Indian Army.Under the agreement, the company will deliver 212 units of 50-tonne tank transporter trailers over a period of two years.

Shares of Axiscades Technologies rallied up to 4.87% to hit an intraday high of ₹1,305 apiece in morning trade on Monday. However, the stock pared some of its early gains to trade 3.04% higher at ₹1,282.1 apiece on the BSE at 10:20 am.

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