The shares of this company surged over 8% after its defence arm signed a pact with the German firm. In this article, we will discuss about the scope and the details of the pact formed by its subsidiary.
With a market capitalization of Rs 11,535 crores, the shares of Reliance Infrastructure Ltd are currently trading at Rs 291, down by 17 percent from its 52-week high of Rs 351 per share. Over the last five years, the stock has delivered a multibagger return of 1,673 percent.
About the announcement
Anil Ambani’s Reliance Defence Ltd has just inked a deal with the German arms manufacturer Rheinmetall AG to provide explosives and artillery shells. As part of this collaboration, Reliance is set to establish a brand-new manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra. This plant is expected to churn out an impressive annual capacity of up to 2,00,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellants.
This venture will not only bolster Rheinmetall’s global supply chains but also play a crucial role in supporting India’s armed forces, while significantly enhancing Reliance’s capabilities in defence manufacturing.
Also read: IT stock skyrockets 18% after reporting 50% YoY net profit growth in Q4
About Rheinmetall AG
Rheinmetall AG is a German automotive and defence manufacturer with its headquarters in Düsseldorf. In March 2023, it became part of Germany’s premier stock market index, the DAX. Rheinmetall is considered the biggest arms manufacturer in Germany and the fifth in Europe. The company engages in car production for a wide variety of armoured vehicles, both wheeled and tracked.
Written by Satyajeet Mukherjee
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