Why are Avantel shares up 12% today? Know More
By Aditya Bhagchandani Published on May 19, 2025, 10:16 IST
Shares of Avantel Ltd surged 11.76% to ₹136.57 in early trade on May 19 following heightened activity in defence stocks amid reports of emergency procurement by the Indian armed forces. The stock hit a high of ₹139.60, up from its previous close of ₹122.20, reflecting strong investor sentiment in the sector.
The rally comes India's armed forces have initiated the process of emergency procurement to replenish ammunition and modernize capabilities. The emergency purchases will include loitering munitions, anti-tank guided missiles, counter-UAV systems, and artillery shells. This procurement can be done up to 15% of the defence modernization outlay, which stood at ₹1.6 lakh crore in the Union Budget.
Avantel, which specializes in wireless and satellite communication, defence electronics, radar systems, and network management software, has benefited from this renewed policy focus on defence preparedness.
The Nifty India Defence Index has surged 9% so far in May, following an 11.5% gain in April and a 24.6% rally in March. The index had earlier seen a 33% correction between July 2024 and February 2025 but has since rebounded sharply amid escalating geopolitical tensions and strong government backing for domestic defence manufacturing.
Investor interest has surged, pushing the combined market capitalization of 18 listed defence firms to a record ₹11.23 lakh crore — up 50% from February's lows. Fund managers also ramped up holdings in April, with notable inflows in Hindustan Aeronautics, Solar Industries, and Mazagon Dock Shipbuilders.
With defence remaining a strategic priority and growing global interest in India's military capabilities, stocks like Avantel continue to ride the wave of optimism in the sector.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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