RInfra arm secures Rs 600 crore export order from Germany's Rheinmetall; stock jumps 5%

Reliance Infrastructure Ltd-backed Reliance Defence Ltd has clinched a major export order worth Rs 600 crore from German defence and ammunitions giant Rheinmetall Waffe Munition GmbH, the company announced on Wednesday.

Described as one of the largest orders in the high-tech ammunition segment, the deal marks a key milestone in Reliance Defence's global expansion strategy. The order comes on the heels of a recently unveiled strategic partnership between the two firms, aimed at enhancing collaboration in advanced defence manufacturing.

"This significant export order underscores the strength of our partnership with Rheinmetall and reaffirms Reliance Defence's position as a trusted player in the global defence supply chain," the Anil Dhirubhai Ambani Group (ADAG)-controlled company said in a stock exchange filing.

The firm added that the collaboration not only paves the way for long-term cooperation but also aligns with India's 'Atmanirbhar Bharat' and 'Make in India' missions. Through this partnership, RDefence aims to bolster indigenous capabilities and emerge as one of the top three defence exporters in the country.

The deal is expected to strengthen India's footprint in Europe's defence sector while fostering technology transfer and self-reliance in critical military hardware.

Anil D Ambani, Founder Chairman, Reliance Group said, "The strategic partnership with Rheinmetall brings cutting-edge capabilities to India and represents a defining milestone for the country's private defence manufacturing sector."

Shares of RInfra jumped 5 per cent to hit the upper circuit limit of Rs 404.05 following the order win. At this closing price, it has zoomed 37.71 per cent in a month.

"RInfra has secured several strategic allocations, including arbitral awards, which are working out quite well for the company. There's increasing buzz and feedback indicating that the management is finally making tangible progress. We could see some positive developments for RInfra going forward," said Sharad Avasthi, Head of Research (PCG) at SMIFS, in a recent conversation with Business Today.

In contrast, Rudra Murthy BV, MD at Vachana Investments, advised against placing bets in RInfra shares for now. "I understand there could be short-term moves but I will not personally advocate putting any money into these two stocks unless you are a quick trader," he stated.