stock jumped 6.5% to Rs 464.90 on BSE after the company received an approval for the drawing of manufacturing factory at Katepally village.
The company would manufacture HMX, ammunition, solid propellants and warheads at this Greenfields project which is located about 80km from Hyderabad.
As intimated to stock exchanges earlier, the company has already received Industrial Licences for these products. With receipt of this approval, the company can start now start construction of the plant and plans to complete it by December 2018.
Premier Explosives Ltd is currently trading at Rs 457, up by Rs 20.7 or 4.74% from its previous closing of Rs 436.3 on the BSE.
The scrip opened at Rs 436 and has touched a high and low of Rs 484 and Rs 435.7 respectively. The stock is currently trading above its 100 DMA.
Premier Explosives is a leading manufacturer of commercial explosives and the only private entity manufacturing solid propellants for Indian missiles. Its revenue comprises of explosives (69%), defence (21%), services (9%) and wind power (1%) in FY17.