Indian defense sector companies continue to receive big orders. Now in this sequence Bharat Electronics ltd (BEL) Has got approval for a big deal. The effect of which can be seen on the stock on Monday.
Bharat Electronics Limited has informed in the information sent to the stock market that the government has given its approval to the joint venture between BEL and Israel Aerospace Industries Limited. Through this JV, it will help in deploying Medium Range Surface Air Missile System used in India. This information came from the company after the market closed on Friday.
Importantly, the formation of this JV does not fall within a related party transaction as neither the promoter nor the promoter group will be setting up a new entity. However, once stabilized, this joint venture will be beneficial for Bharat Electronics. In the information sent to the stock market, the company has said that the Ministry of Corporate Affairs has given approval to form BEE IAI Aerosystems Private Limited on 25 September 2024. This company is a joint venture of Bharat Electronics Limited and Israel Aerospace Industries Limited.
According to the company, this joint venture will provide product support for the medium range surface to air missile system, which includes repair and maintenance and related activities. BEL is an important company in the defense sector and is associated with Akash Missile System, Quick Reaction Air Defense System, Naval Weapon System etc. On the other hand, according to the website of Israel Aerospace, the company’s portfolio includes air and missile defense systems, unmanned aerial systems, ground robotics.
Bharat Electronics’ profit in June quarter increased by 46% year-on-year to ₹776 crore. EBITDA also increased by 41% to Rs 937 crore.