Shares of Punj Lloyd Ltd are soaring, thanks to the Indian Army

Shares of Punj Lloyd Ltd soared more than 9 percent on news that the engineering company was one among two shortlisted by the Indian Army to refurbish its Air Defence Guns for a contract estimated at $100 million.

Punj Lloyd and Bharat Electronics Ltd. were the only two left in the fray out of 5 companies that took part in the bidding. The final bids are to be opened within six months.

Punj Lloyd surged 2.5 rupees to 29 rupees on the National Stock Exchange, where 58.4 lakh shares changed hands compared with a 5-day average of 12.8 lakhs.

Winning this contract could be the veritable shot in the arm for Punj Lloyd which has seen its market capitalization erode 37 percent to 961 crore rupees over the past year as investors shied away from debt-laden companies.

(Image credit: Indiatimes)