Why is Bharat Forge share price skyrocketing today? EXPLAINED

Shares of Bharat Forge witnessed strong gains in trade on Thursday, March 20, after the Cabinet Committee for Security approved a ₹7,000 crore deal for the acquisition of indigenous advanced towed artillery gun systems (ATAGS).

"In a significant milestone for India's defence sector, the CCS approved the acquisition of Advanced Towed Artillery Gun System (ATAGS) worth nearly ₹7000 crore, marking a major step towards self-reliance in artillery gun manufacturing," as per an official release.

Out of ₹7,000 crore, about 60% of the order will be awarded to Bharat Forge and the remaining 40% to Tata Advanced Systems Limited.

Amid this backdrop, shares of Bharat Forge witnessed a nearly 6% rally in intraday deals today. The stock gained as much as 5.97% to hit the day's high of ₹1201.55 apiece on the BSE.

What is ATAGS?

The ATAGS, India's first 155 mm artillery gun designed, developed, and made locally, is set to improve the Indian Armed Forces' capabilities with its advanced technology and powerful firepower.

The ATAGS is a towed artillery gun with a long 52-calibre barrel, allowing it to fire over longer distances of up to 40 km. Its larger calibre makes it more powerful, delivering bigger explosive payloads. The system also features automated setup, target targeting, and reduces the workload on the crew. This approval highlights India's increasing strength in making its own defence equipment and technological progress.

"A testament to the 'Make in India' initiative, ATAGS has been developed through collaboration between the Defence Research and Development Organisation (DRDO) and Indian private industry partners. Over 65% of its components are sourced domestically, including key subsystems such as the barrel, muzzle brake, breech mechanism, firing and recoil system, and ammunition handling mechanism. This development not only strengthens India's defence industry but also reduces dependency on foreign imports," the release read.

As of 3.18 pm, Bharat Forge shares were trading at ₹1194.65, up 5.36% on the BSE. The scrip has gained 9.47% in the last one year while on a five-year basis, the stock has climbed 297%.

(With inputs from ANI)

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