Shares of Dynamatic Technologies soared by over 12 per cent today on the buzz of a major deal with global giant Airbus, prompting the stock exchange to issue a notice to the little-known firm based in Bangalore.
Abuzz with activities, the stock closed the day 12.5 per cent higher at Rs 2,443 at the BSE, after hitting an intra-day high of Rs 2,574 -- its highest level in at least a year.
The surge coincided with media reports that Dynamatic Technologies has signed an agreement with European aircraft major Airbus, following which the stock exchanges issued notices to the company to verify the news.
In a reply to the clarifications sought by the exchanges, the company said, "Dynamatic Technologies Limited has been supplying flap track beams to Airbus SAS since 2010 for A-320 family of aircraft as a single source supplier. These are reflected in the financial statements".
"Today, Airbus signed a contract with Dynamatic to extend its production of flap track beams to A-330 as well. These will be produced in the existing facilities at Dynamatic."
Along with its reply, the company also attached "a press release issued by Airbus" today in this regard.
Linking the deal to the government's 'Make in India' programme, Airbus said it has expanded its global footprint with the "new single source Tier 1 supplier in India".
Interestingly, Dynamatic had issued a press release in March 2014 as well about extending the "flap track beam business to Airbus Long Range Aircraft A-330".
It had said at that time that Dynamatic "has received an Aero Structures Contract from Airbus for the supply of Flap Track Beams for the Airbus Long Range Aircraft (A330 Family) variants, which makes it the first company in the Indian private sector to become a Global Tier One supplier to Airbus."
The company had further said it "has been producing Flap Track Beam assemblies for the Airbus Single Aisle (A320) Aircraft Family on a global single source basis since 2008 as a Tier II supplier to Airbus.
