The order involves the supply of five types of electronic control sub-systems for Thermal Imaging Fire Control Systems (TIFCS), which will be delivered to the Indian Armed Forces, Paras Defence and Space Technologies said in a stock exchange filing.
Paras Defence will execute the order within 24 months.
Following the announcement, shares of Paras Defence and Space Technologies Ltd. jumped 5% to an intra-day high of ₹1,008.35 on the BSE. The gain has driven the company’s market capitalisation to over ₹4,000 crore.
This contract strengthens Paras Defence’s foothold in defence electronics, marking another milestone in its partnership with India’s Ministry of Defence.
Para Defence reported a strong performance in Q2FY25, posting a consolidated profit of ₹12.70 crore up 44.9% year on year from ₹8.76 crore a year ago.
Total income rose 42.2% YoY to Rs 88.76 crore in the quarter ended September 2024 from Rs 62.41 crore in Q2 of last year.
Amit N Mahajan, Director of Technical and R&D at Paras Defence and Space Technologies earlier this month expressed confidence that the company will surpass its projected 20-30% annual growth for FY25.
In an interview with CNBC-TV18, Mahajan shared that the ₹135 crore raised through the company’s recent Qualified Institutional Placement (QIP) will be used to meet working capital requirements and capitalize on new business opportunities.
The QIP, which concluded on October 8, positions Paras Defence to strengthen its operations. Notably, the company serves as the exclusive optics supplier for the Indian Space Research Organisation (ISRO).
The company approved the issuance of 12.93 lakh equity shares with a face value of ₹10 each, priced at ₹1,045 per share. A substantial portion of these shares has been allotted to the Abu Dhabi Investment Authority (ADIA) under the QIP.
Also Read: Explained — Why shares of Force Motors surged 20% on Wednesday
