18000% rally in 5 years! Small-cap defence stock jumps 8% on THIS license agreement with DRDO. Do you own?

Small-cap defence stock NIBE Limited zoomed 8% in the early trading session on Tuesday, June 10, extending its rally to the third straight day as it secured a technology transfer license from Defence Research and Development Organisation (DRDO) for a modular bridging system.

“NIBE Limited (“The Company”), has entered into a Licensing Agreement with Research & Development Establishment (Engrs.) (R&DE(E)), Pune, Defence Research and Development Organisation (DRDO), India, Ministry of Defence, Government of India for Transfer of Technology of “Modular Bridging System” of various lengths from 14m to 46m,” the BSE Smallcap stock said in an exchange filing on Monday.

The Modular Bridging System, as explained by NIBE, is a state-of-the-art, mechanically launched mobile bridge developed by the DRDO. It is a complex, multidisciplinary engineering solution capable of rapidly deploying a bridge with spans of up to 46m, enabling the crossing of tracked and wheeled vehicles.

The system, the defence company said, is specifically designed to address the dynamic requirements of the Indian Armed Forces and other Government agencies.

Under a technology transfer agreement, Nibe Limited has been granted the license to manufacture this vital system in India. The agreement includes exclusive rights to supply the Modular Bridging System to the Indian Armed Forces and designated Government agencies within specified Licensing Regions, for a duration of 10 years.

NIBE share price trend

NIBE share price opened at ₹1732.35, significantly higher than its last closing price of ₹1678.40. Soon, it extended gains to the day's high of ₹1812.90, recording an 8% upside over Monday's closing price.

The small-cap multibagger stock NIBE has rallied 35% in the last one month following multiple order wins and amid a rally in defence counters.

While the stock is up only 7% in the past one year, it has surged a whopping 400% in two years, 3,274% in three years and 18,148% in five years.

While NIBE shares are mildly lower in June, they have risen 34% in May, 26% in April and 6% in March. Before that, however, the multibagger defence stock had declined for five straight months.

NIBE Limited is an Indian defence technology company engaged in the development, manufacturing, and integration of sophisticated defence systems.

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