Paras Defence and Space Technologies saw its shares jump by 10% on Tuesday, reaching ₹1,066.50 on the BSE. This rise came after the company announced it had received a license from the Department for Promotion of Industry & Internal Trade (DPIIT) to make Light Machine Guns (LMGs). The company shared this update in a filing with the stock exchange.
The license lets Paras Defence manufacture advanced LMGs, specifically the MK-46 and MK-48 models, with a yearly production capacity of 6,000 units for each type, according to News18. The license, issued under the Arms Act of 1959, is valid for a lifetime, further strengthening the company’s role in defense manufacturing.
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Company Order Book Crosses ₹850 Cr
Currently, the company’s order book has crossed ₹850 crore, with its Defense Engineering division contributing significantly during the first half of the year. A senior executive shared this update in an interview with CNBC-TV18.
The executive also stated they are optimistic about maintaining or slightly increasing profit margins. Even with the recent stock rise, the share price is still 40% lower than its all-time high of ₹1,592.7.
Paras Defence first gained attention during its IPO, which was one of the most subscribed in India’s history, with bids exceeding ₹38,000 crore, over 300 times the offering size.
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The company is a key private player in the defense and space sectors, focusing on designing, developing, manufacturing, and testing advanced products. Its work is divided into four main areas: defense and space optics, defense electronics, heavy engineering, and electromagnetic pulse protection solutions.
