NIBE Limited Secures Rs 563.35 Crore Contract to Supply Loiter Munition Systems to Indian Army
NIBE Limited has secured a major supply contract with the Indian Army, Ministry of Defence, Government of India. The agreement involves manufacturing and supplying Thirty (30) sets of Loiter Munition System along with associated testing equipment and accessories for a total consideration of Rs 563.35 crore, inclusive of all taxes and duties.The contract falls under the Buy (Indian) category. This significant domestic order underscores NIBE Limited's role in supplying critical defense materiel to the Indian armed forces.
According to the details of the agreement, which was awarded by a Domestic Entity, the scope encompasses the supply of thirty sets of Loiter Munition System, including three hundred Loiter Munitions and all necessary Associated Testing Equipment and Accessories.
Key terms and operational requirements of the contract are as follows:
| Particulars | Details |
|---|---|
| Client Entity | Indian Army, Ministry of Defence, Government of India |
| Nature of Order | Supply of Thirty (30) Sets of Loiter Munition System and Associated Testing Equipment and Accessories in the Buy (Indian) category. |
| Total Consideration | Rs 563.35 Crore (inclusive of all taxes and duties). |
| Execution Timeline | The order is to be executed and delivered in tranches within 12 months from the date of advance payment post signing of the contract. |
The agreement outlines specific performance commitments required from NIBE Limited. Companies must furnish a Performance cum Warranty Bank Guarantee equivalent to 10% of the Total Contract Price within 45 days of signing the Contract. Additionally, the Company is required to provide a Performance Bank Guarantee for AMC amounting to 5% of the Total Price of AMC prior to the expiration or return of the PWBG of the Main Contract.
The contract ensures that there are no conflicting interests, as the promoters and their group companies hold no interest in the entity awarding the order.
NIBE Stock Price Movement
NIBE Limited shares today slipped by 1.47% to settle at ₹1490.1, marking a decline of ₹22.00 from its previous close. During the trading session, the stock saw significant movement within a range bounded by a low of ₹1467.7 and a high of ₹1570.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.