Shares of engineering EPC and defence company Punj Lloyd are up 9.43% at Rs. 29 per share, with volumes spurting over 3 times. Share price had touched a high of 29.80 on NSE, within minutes of opening.

News report suggest that company is one among two to be shortlisted by the Indian Army for a possible deal worth US $ 100 million (Rs. 640 crore) for upgrading its 468 Zu 23 2B air defence guns, of 1960s vintage. While 5 players had evinced interest, only two (one PSU Bharat Electronics and other private player Punj Lloyd) cleared the technical round, underway for past 4 years now. Over the next 6 months, commercial bids will be invited to award the project to the lowest bidder.

For FY15, Punj Lloyd had reported consolidated revenue of Rs. 7,252 crore, down 35% YoY while its net loss doubled to Rs. 1,141 crore, from Rs. 548 crore a year ago. Current market cap stands at Rs. 961 crore, with net debt of Rs. 5,500 crore, as of 31-3-15. Thus, this order, even if won by the company, will not suffice to bring about a change in its fortunes.