Shares of Zen Technologies Ltd. surged in early trading today following the announcement of a significant Annual Maintenance Contract (AMC) with the Ministry of Defence.
The contract, valued at ₹46 crore (including 18% GST), covers the maintenance of Zen Technologies' simulators for a period of five years. This news sent the company's stock price up by 0.5% to ₹1,726.90 on the National Stock Exchange (NSE) at 9:17 am IST.
This agreement underscores the strong relationship between Zen Technologies and the Ministry of Defence, highlighting the government's confidence in the company's advanced simulation solutions.
Zen Technologies has established itself as a leading provider of military training systems and anti-drone technology, with a portfolio encompassing land-based and driving simulators, live range equipment, and more. The company has a proven track record, having delivered over 1,000 training systems globally and holding 75 granted patents.
"This contract strengthens Zen's association with the Ministry of Defence and showcases the confidence the Ministry reposes in our high-tech defence solutions," said the company in a statement. "This also focuses on Zen's ability to cater to the operational needs of the Indian defence forces through state-of-the-art simulation solutions."
In addition to the AMC, Zen Technologies recently unveiled four new remote-controlled weapon and surveillance systems developed in collaboration with its subsidiary, AI Turing Technologies. These systems, which include the RCWS - 7.62 x 51 MMG (Parashu), Tank Mounted RCWS - 12.7 x 108 HMG (Fanish), Naval RCWS - 12.7 x 99 HMG (Sharur), and Artillery Rugged Camera (Durgam), are designed to enhance India's defence capabilities.
Ashok Atluri, Chairman and Managing Director of Zen Technologies, commented on the new systems, stating, "Our new remote-controlled weapons and surveillance systems give the armed forces superior technologies that enhance operational capabilities manifold and keep the soldiers away from danger, which will give our forces a tactical edge."
These developments come as Zen Technologies continues to experience strong growth. The company's stock has risen by approximately 128% in the past year, significantly outperforming the NSE Nifty index. With a market capitalization of ₹15,131.76 crore, Zen Technologies is well-positioned to continue its trajectory of innovation and growth within the defence sector.
