Hindustan Aeronautics shares zoom nearly 10%

Shares of Hindustan Aeronautics Limited on Thursday jumped nearly 10 per cent after the Cabinet Committee on Security approved the much-awaited deal worth Rs 48,000 crore to procure 83 indigenously-developed Light Combat Aircraft (LCA) Tejas from HAL.

The stock zoomed 9.57 per cent to close at Rs 1,009 on the BSE. During the day, it gained 13.69 per cent to Rs 1,047.

On the NSE, it jumped 9.48 per cent to close at Rs 1,008.95.

Welcoming the government's approval to the Tejas deal, chief of state-run aerospace behemoth Hindustan Aeronautics Limited R Madhavan on Wednesday described it as a major shot in the arm towards India's goal of achieving self-reliance in the aerospace and aeronautics sector.

The Cabinet Committee on Security (CCS) approved the much-awaited deal worth Rs 48,000 crore to procure 83 indigenously-developed Light Combat Aircraft Tejas from HAL to boost Indian Air Force's combat prowess.

Madhavan, chairman and managing director of the HAL, said the production rate of Tejas is being augmented from eight to 16 aircraft per year through creation of new infrastructure in Bengaluru.