Sigma Advanced Systems has secured an export contract valued at US$21.97 Mn (nearly INR 208 crore) for the manufacture and supply of 40,000 units of 155 mm M107 artillery shell bodies to a customer in North America. The contract is scheduled for execution over a six-month period, with production and deliveries to be completed within this timeframe. This order marks a strategic expansion in Sigma Advanced Systems' munitions capabilities, transitioning the company from a fuze manufacturer to a complete artillery shell component production manufacturer.

The announcement was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on June 08, 2026. The requisite Export Authorisation from the Department of Defence Production (DDP), Ministry of Defence has been obtained.

Contract at a Glance

The key details of the awarded contract are summarised below:

Manufacturing Programme

The project involves the production of 155 mm artillery shell bodies, a critical structural component of artillery ammunition. Manufacturing these components requires advanced metallurgical expertise, precision manufacturing capabilities, and stringent quality assurance processes. The scale of the order reflects Sigma Advanced Systems' ability to execute high-volume, mission-critical defence manufacturing programmes for international customers.

About the Product

The shell body forms the primary structural element of a 155 mm artillery projectile and is among the most critical components in artillery ammunition manufacturing. Producing these structures demands specialised expertise in the following areas:

• Materials engineering
• Forging and machining
• Heat treatment
• Quality control to ensure reliability under extreme operational conditions

The 155 mm calibre remains the global standard for modern artillery systems and is widely deployed across NATO and allied platforms. Continued demand for artillery ammunition worldwide has created a growing requirement for trusted manufacturing partners capable of delivering high-quality ammunition components at scale.

Strategic Business Impact

This new order marks a strategic expansion in Sigma Advanced Systems' munitions capabilities, transitioning the company from a fuze manufacturer to a complete artillery shell component production manufacturer. This dual capability highlights the company's evolution into a comprehensive global defence munitions partner with end-to-end engineering and precision manufacturing expertise. The contract also reflects a broader shift in global supply chains, with international customers increasingly seeking reliable, high-quality manufacturing partners capable of delivering critical defence products at scale.

Commenting on the announcement, Sunil Kalidindi, CEO & Executive Director, Sigma Advanced Systems, said, "This contract reflects the confidence international customers place in India's defence manufacturing ecosystem and in Sigma's ability to deliver complex, high-precision products at scale. Manufacturing artillery shell bodies requires deep expertise in metallurgy, precision engineering, process control, and quality assurance. This order strengthens our position within the global defence supply chain and demonstrates our ability to support international customers with world-class manufacturing capabilities from India."

Company Background

Sigma Advanced Systems is a globally integrated aerospace and defence company with more than three decades of manufacturing experience. Operating across India and the UK, with expansion underway in the United States, the company is among the largest India-headquartered manufacturers of aero-engine and aerostructure components. The company works closely with global aerospace and defence OEMs at the programme level through long-term agreements and delegated responsibilities, combining customer proximity in Western markets with India's cost-efficient, talent-rich manufacturing base.

Sigma Advanced Systems has scheduled an Extra-Ordinary General Meeting (EGM) on June 28, 2026, to seek shareholder approval for the issuance of up to 1,32,56,470 fully paid-up equity shares on a preferential basis. The issue price is fixed at ₹347 per share, including a premium of ₹337, aggregating to a total of ₹459,99,95,090. The proceeds are intended for general corporate purposes and funding requirements, subject to regulatory approvals.

The preferential allotment targets non-promoters, including mutual funds such as Bank of India Flexi Cap Fund, Bank of India Small Cap Fund, and Taurus Flexi Cap Fund, as well as individual investors. The board has appointed India Ratings and Research Private Limited as the Monitoring Agency pursuant to Regulation 162A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, to oversee the utilization of funds exceeding ₹100 crore.

The EGM will be held via video conferencing at 11:00 A.M. (IST). The e-voting period begins on June 24, 2026, and ends on June 27, 2026, with the record date set as June 21, 2026. Shareholders holding shares in dematerialized form can vote through their depository accounts using CDSL or NSDL e-voting systems.

Additionally, the board approved the issuance of 4,32,777 equity shares of ₹10 each on a preferential basis for consideration other than cash. This involves acquiring an additional 25% equity shareholding in its subsidiary, AS Strategic Private Limited, through a share swap. The subsidiary, operating in the aerospace and defence sector, reported a turnover of ₹608 lacs for the twelve-month period ended March 2025.

Preferential Allotment Details