L&T gains nearly 2% on winning Defence Ministry order

The shares of Larsen & Toubro Limited, an engineering, procurement and construction company, rose 1.93% to an intraday high of ₹3,700 per share on Monday as investor sentiments improved after the company won a major contract for the supply of K9 Vajra-T Artillery Platforms to the Indian Army.

The order was placed by the Ministry of Defence and its value ranges from ₹5,000 crores to ₹10,000 crores. 

In an exchange filing, the company stated, "The Ministry of Defence, Government of India, has awarded a major contract to Larsen & Toubro (L&T) for the supply of K9 Vajra-T Artillery Platforms to the Indian Army.

Co-developed by L&T and Hanwha Aerospace, the K9 Vajra-T, a 155 mm, 52-calibre tracked self-propelled artillery platform has been adapted from the world’s leading South Korean self-propelled howitzer K9 Thunder. It is customised to suit the requirements of the Indian Army for operations in varied terrains, including deserts, plains and high-altitude regions. 

In 2017, Larsen & Toubro had bagged the contract for the first batch of 100 K9 Vajra-T platforms through a global competitive bidding process and after successful field evaluation.

At close on Monday, the stock was 0.29% higher at ₹3,640.50 per share compared to its previous closing price of ₹3,629.85 per share on the National Stock Exchange.

Summary: L&T rose 2% as it won an order from the Defence Ministry to supply K9 Vajra-T Artillery Platforms to the Indian Army.