NIBE Bags Rs 563 Cr Indian Army Loiter Munition Deal
By Business Desk
NIBE secures a major Rs 563.35 crore contract from the Indian Army for 300 loiter munition systems. Shares saw a minor dip post-announcement.
NIBE has secured a significant contract valued at Rs 563.35 crore from the Indian Army, Ministry of Defence, Government of India. This agreement is for the manufacture and supply of advanced loiter munition systems, a development that saw NIBE shares decline on the BSE.
- Contract Value: Rs 563.35 crore (including taxes and duties)
- Systems to be supplied: 30 sets of loiter munition systems
- Individual Munitions: 300 loiter munitions
- NIBE Share Decline: 3.29%
- Trading Price: Rs 1,439.75 on the BSE
The contract specifically falls under the ‘Buy (Indian)’ category, underscoring domestic procurement. Beyond the munitions themselves, the order encompasses all necessary testing equipment and associated accessories to ensure operational readiness.
Contract Execution and Guarantees
Execution of this crucial contract is scheduled in tranches over a 12-month period. This timeline commences from the release of the advance payment, which will follow the official signing of the agreement.
- Performance-cum-warranty bank guarantee: 10% of total contract value
- Submission Deadline: Within 45 days of contract signing
- Additional Requirement: Stipulated bank guarantee for the annual maintenance contract
Following the announcement of this substantial order, shares of NIBE experienced a dip of 3.29%. The stock traded at Rs 1,439.75 on the BSE, reflecting immediate market reaction to the news.