Premier Explosives surges on licence for defense products

MUMBAI: Shares of Premier Explosives surged as much as 15.91 per cent in intraday trade on Friday as the company received Industrial License from the Department of Industrial Policy and Promotion (DIPP), for defense products, flexible liner shape charge, explosives reacting armour and single base propellant.

Last month, the company had received license from DIPP for manufacturing of ammunition such as 40 mm and above caliber rockets and missiles, cartridge explosives, mines related to defence and bombs at Katepally, Yadagirigutta Mandal, District-Nalgonda, in the State of Telangana.

A N Gupta, CMD, Premier Explosives in an interview to ET Now said, the company has just received the licence and it will take a while for the orders.

He added the company has Rs 500 crore in reserves and no debt. If required, it can borrow from banks or come to markets to raise funds.

Gupta expects order book of Rs 180-200 crore in FY16.