BEL shares snap three-day losing streak after announcing JV for HAMMER production in India

Shares of Bharat Electronics Ltd. gained on Tuesday, November 25, after it inked a joint venture cooperation agreement with France-based Safran Electronics and Defence for the production of Highly Agile Modular Munition Extended Range (HAMMER) smart precision guided air-to-ground weapon in India.

The joint venture cooperation agreement was signed on Tuesday. It formalises the Memorandum of Understanding (MoU) inked between the two companies in February this year during Aero India, BEL wrote on its social media handle on "X".

Both firms will hold equal stake in the JVC. It will localise the manufacturing, supply and maintenance of HAMMER to meet the operational needs of the Indian Air Force and the Indian Navy, the ministry of defence said in a statement.

HAMMER is a combat-proven precision-guided weapon system known for its high accuracy and modular design, making it adaptable for multiple platforms, including the Rafale and Light Combat Aircraft Tejas, the company said.

The indigenisation level will progressively increase up to 60% with key sub-assemblies and mechanical parts being manufactured locally, the statement said. The transfer of production will happen in a phased manner with BEL leading the final assembly, testing and quality assurance, it added.

BEL shares were up over 1% at ₹408.4 apiece, snapping their three-day losing streak. The stock has gained 39% this year so far.

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