Paras Defence soars after board OKs incorporating associate firm

Paras Defence and Space Technologies hit an upper circuit limit of 20% at Rs 759.90 after the company said its board approved incorporating an associate company for maintenance and servicing of defence equipment.

Shares of Paras Defence were currently frozen at a record high of Rs 759.90.

The board of directors at their meeting held on 18 October 2021 have approved incorporation of an associate company in association with Krasny Defence Technologies. The proposed associate company shall be engaged in the field of maintenance, servicing and repairs of defence equipments and naval vessels, the company said in an exchange filing.

Paras Defence and Krasny Defence will hold 47.50% each in the new company.

Krasny Defence Technologies is a prominent player in the field of defence equipment maintenance and wholesome refits of Indian Naval and Indian Coast Guard Ships (ICGS).

Paras Defence and Space Technologies is primarily engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions. Its product offerings caters to four major segments of Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (EMP) protection solution and heavy engineering for defence and niche technologies. It is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India.

The company reported a consolidated net profit of Rs 15.73 crore and sales of Rs 143.33 crore in the twelve months ended 31 March 2021.

Shares of Paras Defence entered the bourses on 1 October 2021. The stock was listed at a price of Rs 475 per share, at a premium of 171.43% to the issue price of Rs 175 per share.

The initial public offer (IPO) of Paras Defence and Space Technologies was subscribed 304.26 times. It opened for bidding on 21 September 2021 and closed on 23 September 2021. The price band of the IPO was fixed at Rs 165-175 per share.

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