Avantel shares jumped over 12% in Wednesday trading following the company's announcement of a significant contract win. According to reports from CNBC TV18, the aerospace and defence company received a contract worth ₹459.90 crore from Zetwerk Manufacturing Businesses Limited. The stock surged as much as 12% to ₹134.08 during intraday trading, demonstrating strong investor confidence in the defence sector opportunities. As per CNBC TV18, the contract is domestic in nature and is scheduled to be executed over a period of three years.
As reported by CNBC TV18, the contract involves the manufacturing and supply of satellite communication systems along with comprehensive support services. The agreement includes one year comprehensive onsite warranty and five years comprehensive Annual Maintenance Contract (AMC) support. The 3-year domestic order represents a substantial opportunity in the satellite communication equipment sector, showcasing the company's capabilities in defence and aerospace applications. The company clarified that the order does not fall under related party transactions and that neither the promoter group nor associated entities have any interest in the awarding company.
According to CNBC TV18 reports, Avantel shares have gained 12% following the announcement but have since pared some gains, trading at ₹134.08 as of 12.23 pm, still 10.78% above Tuesday's closing price. The stock has delivered more than 24% returns over the last 12 months but has declined over 14% year-to-date. The company has a total market capitalisation of ₹3,578.59 crore and was listed on exchanges on July 31, 2024. The stock has traded in a 52-week range of ₹97.33 to ₹215.
As reported by CNBC TV18, at 12.23 PM, Avantel shares were trading at ₹134.08 apiece on the National Stock Exchange, surging 10.78% during Wednesday's session. The stock's performance reflects continued investor interest following the major contract announcement, with the aerospace and defence sector showing strong momentum. The company's recent order wins demonstrate its expanding presence in the defence equipment supply chain.
According to CNBC TV18, Avantel has been supporting the strategic defence sector for three decades and has developed unique products for Indian defence services. The company reoriented itself from manufacturing building blocks to offering system-based solutions across four main verticals: satellite communications, HF communications, electronic warfare and radar systems. Currently, the company is enhancing its portfolio with SCA-compliant software-defined radios, high-power HF systems, air defence radars and small satellites. The company's recent order wins from NewSpace India Limited worth ₹122.58 crore for S/X-band with Ka-band-ready full-motion antennas further strengthen its defence sector presence. As per CNBC TV18, the agreement covers both equipment supply and long-term maintenance support, strengthening its order book in the communications and defence electronics segment.
