Paras Defence and Space Technologies rallied 3.25% to Rs 724 after the Ministry of Civil Aviation (MoCA) shortlisted its subsidiary, Paras Aerospace in the category of drone component manufacturers among others.
Based on the preliminary examination of the application, the MoCA has selected the company as per the minimum value addition criterion of more than 40%. The company will receive incentives from the MoCA as per the norms stipulated under the PLI scheme for drones.
The MoCA - SDIT, on 20 April 2022 issued the first provisional list of beneficiaries under PLI scheme for drones and drone components manufacturers. The Government of India announced the PLI scheme for drones with total budget outlay of Rs 120 crore for a period of 3 years with a 20% incentive to the industry on the value addition provided by the qualified companies.
On a consolidated basis, Paras Defence and Space Technologies reported net profit of Rs 7.71 crore in Q3 December 2021 as compared to a net loss of Rs 2.55 crore in Q3 December 2020. Net sales surged 111.8% to Rs 46.44 crore in Q3 December 2021 over Rs 21.93 crore in Q3 December 2020.
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 cater 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.
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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