Zen Technologies shares locked in upper circuit as government 'bans' import of foreign drone

Shares of Zen Technologies were locked in 5 per cent upper circuit on Thursday after the government on Wednesday banned the import of foreign drones with certain exceptions. The move is part of the government's efforts to promote the domestic manufacturing of drones in the country.  

At 9.50 am, shares of the defence company, headquartered in Hyderabad, was locked in 5% upper circuit or with gains of Rs 10.30 to 216.40 per share in Thursday's intraday trade on the BSE. As on February 10, Shares of Zen Technologies have gained over 150% in the last six months and the return in one year also stands around the same figure, showed technical details of the stock.  

However, shares of Zen Technologies, which builds training solutions that develop combat ready soldiers, have surged over 250% in the last one year as on the February 10.  

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Anti-Drone System from Zen Technologies works on drone detection, classification and tracking on passive surveillance, camera sensors and neutralization of the threat through jamming the drone communication. 

Earlier on Wednesday, the government announced that import of drones for R&D, defence and security purposes have been exempted from the ban but such imports will require due clearances.  

"Import of drone components, however, shall not require any approvals," the civil aviation ministry said in a release on Wednesday.  

The Directorate General of Foreign Trade (DGFT) under the commerce and industry ministry has issued a notification banning the import of foreign drones.  

"Import policy for drones in CBU (Completely Built Up)/CKD (Completely Knocked Down)/SKD (Semi Knocked Down ) form... is prohibited with exceptions provided for R and D, defence and security purposes," DGFT said. 

Import of drones for defence and security purposes will be allowed in CBU, SKD or CKD form subject to import authorisation issued by DGFT in consultation with concerned line ministries. 

Meanwhile, shares of the defence equipment maker have traded on 52-week high of Rs 257.70 on December 15, 2021 and touched a year low of Rs 65 on May 18, 2021.