NIBE Jump Nearly 8% On Technology Transfer From DRDO; Mutibagger Defence Stock Rallies 18,700% In Five Years

NIBE Ltd. rose nearly 8% on Tuesday after it secured a technology transfer licence from the Defence Research and Development Organisation for the Modular Bridging System.

Under the terms of technology transfer, the company is licensed to manufacture this critical system in India and sell it within specified licensing regions for a period of 10 years. This includes exclusive rights to supply the system to the Indian Armed Forces and other government agencies.

The “Modular Bridging System” is a state-of-the-art, mechanically launched mobile bridge, developed by DRDO. It is a complex, multi-disciplinary engineering solution capable of rapidly deploying bridges up to spans of 46m to enable the crossing of tracked and wheeled vehicles. The system is specifically designed to address the dynamic requirements of the Indian Armed Forces and other government agencies.

This comes after the DRDO announced that it has transferred the technologies of nine advanced defence systems—including a mounted gun system and a tracked anti-terrorist vehicle—to ten public and private sector partners.

CBRN Recce Vehicle (Tracked) Mk-II has been transferred to Bharat Electronics Ltd., Mounted Gun System has been licensed to Bharat Forge Ltd., and Anti-Terrorist Vehicle (Tracked Version) has been transferred to Metaltech Motor Bodies Private Ltd.

Additionally, the full trailer for the 70-tonne tank transporter designed for the main battle tank Arjun Mk-1A has been transferred to four industry partners, including BEML Ltd. A Multi-Purpose Decontamination System has also been licensed to two defence firms.

The shares of NIBE rose as much as 7.91% to Rs 1,814.70 apiece, the highest level since May 30. It pared gains to trade 4.16% higher at Rs 1,751.60 apiece, as of 9:47 a.m. This compares to a 0.03% advance in the NSE Nifty 50 Index.

It has risen 9.86% since its listing in February. Total traded volume so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 62.3.

However, the stock was listed on the BSE in 2019 and is up 7.53% year-to-date and 6.68% in the last year. The shares have risen 18,731.24% in the last five years.