Last Updated:
The license allows Paras Defence to produce MK-46 and MK-48 belt-fed Light Machine Guns; Key details for investors to know
Paras Defence Shares
Shares of Paras Defence and Space Technologies rose by as much as 10% on Tuesday, reaching Rs 1,066.50 on the BSE, after the company announced that it had obtained a license from the Department for Promotion of Industry & Internal Trade (DPIIT) to manufacture Light Machine Guns (LMGs). The company revealed this development in a filing with the exchange.
The license allows Paras Defence to produce MK-46 and MK-48 belt-fed Light Machine Guns, advanced and modernized weapons, with an annual production capacity of 6,000 units for each model. The company highlighted that the license, issued under the Arms Act of 1959, holds lifetime validity, which strengthens its position in the defense manufacturing sector.
Paras Defence’s order book has now exceeded Rs 850 crore, with the company seeing increased contributions from its Defense Engineering business during the first half of the financial year, according to a senior executive’s recent interview with CNBC-TV18.
The executive also expressed confidence in maintaining or slightly improving profit margins, indicating a cautious but optimistic outlook. Despite the recent rally, the company’s stock remains 40% below its previous peak of Rs 1,592.7.
Paras Defence attracted significant attention during its IPO, which became one of India’s most subscribed offerings, with subscriptions exceeding 300 times and total bids surpassing Rs 38,000 crore during its three-day issuance.
Paras Defence and Space Technologies is a prominent private-sector company specializing in the design, development, manufacturing, and testing of advanced products and solutions for the defense and space sectors. Its operations are divided into four main segments: defense & space optics, defense electronics, heavy engineering, and electromagnetic pulse protection solutions.
