Small-cap defence stock rises 13% in 5 trading sessions post order from ISRO’s arm: Do you own it?

Stock Market Today: Small-cap defence stock Avantel Ltd has risen 13% in 5 trading sessions post receiving order from ISRO's arm NewSpace India Limited.

The Defence, telecom and technology company Avantel Ltd in its release on 19 February informed the Exchanges regarding having received order from NewSpace India Limited.

Avantel Order details

An order for ₹43.25 crore (taxes included) had been signed by Avantel Limited and NewSpace India Limited (NSIL). In order to improve security throughout India's coastal areas, the contract calls for the supply, installation, and commissioning of 45,252 Xponder devices, which will be installed on marine fishing vessels.

NewSpace India Limited, the commercial arm of the Indian Space Research Organisation (ISRO), is a Central Public Sector Enterprise under the Department of Space. The collaboration exemplifies the synergy between public sector enterprises and private industry in advancing India's technological capabilities and maritime security.

Avantel Ltd in its release said that the contract order is to be completed by August 2025

Two supply orders for 26,743 Xponder units and the construction of the Ground Segment Hub for the Vessel Communication and Support System have already been received by Avantel. By enhancing monitoring, control, and surveillance capabilities, these deployments will improve maritime security and the fisheries industry's operating effectiveness.

Siddhartha Abburi, Director, Avantel Limited, in a statement said that "We are continuing our collaboration with NewSpace India Limited. This order strengthens our efforts to provide communication solutions for maritime safety and efficiency. Our Xponder devices demonstrate Avantel's focus on technology for India's maritime infrastructure".

Avantel Ltd Share price movement

Avantel share price that had dipped to closing lows of ₹101.60 has rebounded and has been rising ever since to near ₹118 levels it was trading on Tuesday. While this translated into more than 16% gains, Avantel share price over past five sessions is up more than 12%.

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