Goodluck India: A significant leap towards defence and aerospace; stock jumps over 10% in early trade

Goodluck India Ltd, an engineering conglomerate engaged in manufacturing and selling engineering products, has made a significant announcement regarding its expansion plans in the defence and aerospace sectors. According to the details, the company aims to capitalize on the growing opportunities within the Defence and Aerospace sectors through its wholly-owned subsidiary, Goodluck Defence and Aerospace Private Limited.

Goodluck Defence And Aerospace Private Limited, incorporated on August 31, 2023, is a private limited company with the primary objective of engaging in the forging, machining, treatment, and coating of steel, stainless steel, special steel, alloys, or other metals, using methods such as open forging, die forging, robotic forging, or any applicable technique. It’s important to note that the company has not started its business operations currently.

Furthermore, the company plans to issue 5,00,000 preferential warrants to promoters at an exercise price of Rs 600 per share, and 11,00,000 preferential equity shares to non-promoters at the same price, aiming to raise approximately Rs 96 crore in total. Of which Rs 40 crore from the preferential issue of the parent company will be used as an investment in the subsidiary.

In response to these developments, M.C. Garg, Chairman of Goodluck India, expressed his enthusiasm, stating, “We are excited to embark on a new journey focused on growth and value creation. India is on the verge of a significant period of innovation and industrial resurgence, driven by the government’s strong commitment to initiatives like Make in India, Aatmanirbhar Bharat, and the vision of achieving a developed economy by 2047. The Defence and Aerospace sectors will play a pivotal role in realizing this ambitious vision. Hence, we have made the strategic decision to leverage our expertise and capabilities through a wholly-owned subsidiary dedicated to exploring broader opportunities in these high-growth sectors.

Following this announcement, the stock surged by over 12% in today’s trading session. The Goodluck India stock opened at Rs 678 per share, marking a roughly 7.5% increase from the previous day’s closing price of Rs 631 per share on the BSE. It reached its 52-week high of Rs 708 per share, and as of writing this article, it is trading at Rs 700 per share on the BSE.

Furthermore, the stock has delivered an impressive multibagger return of 1700% over the last three years.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.