Upper Circuit & 52-Week High Alert: Defence drone company receives USD 20-30 million drone command system manufacturing contract with CYGR

RRP Defense Limited, formerly known as Euro Asia Exports Limited, has entered into a significant Letter of Intent (LOI) with CYGR, a Franco-American drone technology company. This LOI outlines the allocation of production, assembly, and testing of CYGR's proprietary Drone Command Modules (DCMs) and related mission management units to an Indian manufacturing facility operated by RRP Defense Ltd. This strategic move aims to strengthen bilateral industrial cooperation, enhance supply chain resilience, and contribute to the "Make in India - Secure by Design" strategic defence manufacturing ecosystem.

The manufacturing contract for exports to CYGR's existing clients is estimated to be in the range of USD 20-30 million. This will encompass the production of approximately 800-1000 units of command-and-control equipment, with all associated responsibilities transferring to RRP Defense Ltd.'s Indian facility. This initiative marks a crucial step towards India's technological and defence self-reliance, aligning with the "Atmanirbhar Bharat" vision.

It's important to note that this LOI is a statement of intent and not a binding agreement. A definitive contract, which will detail the scope, timelines, licensing, sovereign security assurances, and export compliances, will be jointly negotiated and executed by both parties. In anticipation of this collaboration, RRP Defence Limited has already begun the process of incorporating a new name, "Vimanu Limited," with the Ministry of Corporate Affairs.

About the Company

RRP Defense Ltd. is an Indian company that has rapidly transformed from a trading firm (formerly Euro Asia Exports Limited) into a key player in the country's defence and drone technology sector. Under the "Make in India" initiative, RRP Defense is focused on designing, developing, and manufacturing advanced defence systems, particularly unmanned aerial systems (UAS) and related technologies. They've recently solidified their position through a significant tie-up with French-American aerospace firm CYGR to establish a drone manufacturing facility in India, focusing on producing Drone Command Modules for international export. This strategic shift and international collaboration underscore RRP Defence's commitment to indigenous capabilities and its growing presence in the global defence market.

On Friday, shares of RRP Defense Limited hit a 2 per cent upper circuit and made a new 52-week high of Rs 223.90 per share. The company has a market cap of Rs 35.13 crore and the stock has given multibagger returns of 1,238 per cent from its 52-week low of Rs 16.73 per share.

Disclaimer: The article is for informational purposes only and not investment advice.