Shares of Paras Defence and Space Technologies surged by five percent in early trading on August 22 after the company received an industrial license from the government.
This significant approval allows the space and defence technology company to manufacture a range of key defence products, marking an important milestone for the firm.
At 9:20 am, Paras Defence shares were trading at Rs 1,293.8 on the National Stock Exchange (NSE), representing a notable increase of around five percent from the previous day's closing price.
The rise in stock value is directly tied to the industrial license granted by the Department for Promotion of Industry & Internal Trade (DPIIT).
This newly awarded license permits Paras Defence to establish an industrial undertaking dedicated to manufacturing critical items.
These items include infrared and thermal imaging equipment, advanced electro-optic systems, radar system platforms and modules, control assemblies, opto-electronic assemblies, and border security surveillance systems.
The license is set to remain valid for approximately 15 years, allowing the company a long-term horizon to execute and expand its manufacturing operations.
The company also informed the stock exchanges that the facility for manufacturing these high-tech defence products will be based in Navi Mumbai, Maharashtra.
This strategic location is expected to bolster the company’s capacity to meet domestic and global defence demands, further strengthening its position within the industry.
In addition to this development, Paras Defence's associate company, Controp-Paras Technologies, recently secured a significant order worth Rs 305 crore from Larsen and Toubro (L&T).
The deal involves the production and delivery of 244 units of the Sight-25 HD Electro-Optics (EO) System, a critical component of L&T's Close-In Weapon System (CIWS) program, which plays an essential role in naval defence.
Over the past six months, Paras Defence shares have shown remarkable performance, rising by 66 percent, significantly outpacing the Nifty 50 index, which saw a gain of just 11.5 percent during the same period.
The company's consistent growth and expansion in the defence sector are positioning it as a key player in the industry, with promising prospects for future development.
