Zen Technologies Ltd. shares jumped on Friday after it announced receiving an arms manufacturing licence from the government to manufacture anti-aircraft cannons.
The licence authorises the company to manufacture 12.7mm, 23mm, 30mm, and 40mm cannons, critical weapon systems with strong applicability in air defence, naval operations and Counter-Unmanned Aircraft System (C-UAS) roles. These rapid-fire cannons serve as highly effective last-layer defence solutions against drones, loitering munitions, and low-flying aerial threats, according to a statement.
Additionally, when integrated with advanced fire-control systems, radar, electrooptical/infrared (EO/IR) sensors, and programmable ammunition, these systems provide highly responsive, accurate, and cost-effective protection for strategic assets, armoured formations, border areas, and critical infrastructure, the statement said.
"Against the backdrop of ongoing global conflicts, where drones, loitering munitions, and asymmetric aerial threats are increasingly prevalent, these systems equip Zen Technologies to address emerging battlefield challenges with Indiacentric, cost-effective air defence solutions," the company said.
Zen Tech has a dedicated R&D and production facility in Hyderabad and has supplied defence systems to the indian armed forces.
Shares of Zen Tech surged as much as 7.8% after the announcement, before closing 6% higher on the NSE. The stock is up 8% in the last 12 months and 18% so far this year.
ALSO READ: Apollo Micro Systems Shares Surge After Licence To Manufacture Missiles, Other Arms
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.