Hindustan Aeronautics Ltd (HAL) share price traded higher on Wednesday after the PSU company signed a Technology Transfer Agreement for Small Satellite Launch Vehicle with multiple space agencies. The PSU defence stock gained as much as 1.38% to ₹4,515.00 apiece on the BSE.
HAL said it has signed the agreement with Indian National Space Promotion and Authorisation Centre (IN-SPACe), NewSpace India Limited (NSIL) and Indian Space Research Organisation (ISRO).
The SSLV is a three-stage vehicle designed to launch satellites weighing less than 500 kg into Lower Earth Orbit (LEO). Under this contract, HAL will absorb the technology in the first two years, followed by a 10-year production phase.
“The agreement grants HAL a non-exclusive, non-transferable license to the SSLV technology, which includes comprehensive design, manufacturing, quality control, integration, launch operations, and post-flight analysis documentation, as well as training and support,” Hindustan Aeronautics said in a regulatory filing on September 10.
HAL will be responsible for the mass production of SSLV to meet Indian and global demands, it added.
Through this transfer, HAL will now have the autonomy to build, own and operate the launch vehicle, a move that aligns with its long-term strategy to establish a dedicated space vertical. This strategic technology transfer will enable HAL to transition from a component supplier to a comprehensive launch service provider and a key player in the rapidly expanding small satellite market, the defence PSU said.
HAL Share Price Performance
HAL share price has remained flat in one month and has fallen 12% in three months. The PSU defence stock has rallied 32% in six months and has gained 8% on a year-to-date (YTD) basis. Over the past one year, HAL share price has fallen 4%, while it has delivered multibagger returns of 942% in five years.
At 11:45 AM, HAL share price was trading 1.12% higher at ₹4,503.55 apiece on the BSE.
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