Shares of DCX Systems Ltd. were locked in the upper circuit on Tuesday after the company announced that its subsidiary has received licence from the government to manufacture defence electronic equipment.
The licence has been issued to Raneal Advanced Systems Pvt., a wholly-owned unit of DCX Systems, by the Union Ministry of Commerce and Industry, an exchange filing stated.
Apart from granting the permit to make defence electronic equipment, the licence allows Raneal Advanced Systems to produce, assemble and test "microwave submodules for command and guidance units for missile subsystems", the filing added.
The licence, which is valid for 15 years, also allows the company to manufacture avionics and radar systems, it further said.
The facility where the above products will be manufactured is based in Bengaluru, DCX Systems noted.
DCX Systems' stock hit 5% upper circuit to Rs 346.9 apiece on the NSE, compared to a 0.14% advance in the Nifty 50 as of 1:28 p.m.
It has risen 12.6% during the last 12 months, and 1.6% year-to-date. Total traded volume so far in the day stood at 0.47 times its 30-day average. The relative strength index was at 57.9.
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