2:1 Stock Split: Defence Drone Company Executes a Joint Venture Agreement with Heven Drones Ltd
The stock gave multibagger returns of over 120 per cent from its 52-week low of Rs 743.45 per share.
On Friday, shares of Paras Defence and Space Technologies Ltd gained 1.23 per cent to Rs 1,637.10 per share from its previous closing of Rs 1,617.20 per share. The stock’s 52-week high is Rs 1,943.60 per share and its 52-week low is Rs 743.45 per share.
Paras Defence and Space Technologies Ltd. has entered into a significant joint venture (JV) agreement with Heven Drones Ltd. of Israel, aimed at establishing a new drone manufacturing subsidiary in India. This collaboration is set to bolster India's defence and civil drone capabilities, aligning with the "Make in India" initiative. In this new Indian entity, Paras Defence will hold 51 per cent of the shareholding, while Heven Drones will possess 49 per cent. The initial authorized and paid-up share capital for the proposed company is set at Rs 1,00,000, divided into 10,000 equity shares of Rs 10 each. Each party will have the right to nominate two directors to the board of the new company, which is expected to be named "Paras Heven Advanced Drones Private Limited" or "Paras Heven Drones Private Limited."
This strategic partnership will combine Paras Defence's engineering and manufacturing expertise with Heven Drones' proprietary hydrogen-powered drone technology. Paras Defence will initially subscribe to 5,100 equity shares, totaling Rs 51,000, at face value. This JV signifies the first time this advanced hydrogen-powered drone solution will be available in India. The primary objective is the development and production of logistics and cargo drones for both defence and civil markets. These drones are envisioned for applications such as long-endurance missions, modular payload delivery, surveillance, and high-altitude operations, with future plans to expand into global markets after establishing a strong presence within India.
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About the Company
Paras Defence and Space Technologies Ltd (PDST) is a leading private Indian company in the defence and space sector. They design, develop, manufacture, and test a wide range of products and solutions for these critical fields. PDST caters to four main areas: Defence & Space Optics, Defence Electronics, Heavy Engineering, and Electromagnetic Pulse (EMP) Protection Solutions. This specialisation allows them to serve a diverse clientele. They supply their products to both government and private entities.
Some of their government clients include prestigious organisations like the Indian Defence Force (IDF), Defence Research and Development Organisation (DRDO), Bharat Electronics Limited (BEL), Indian Space Research Organisation (ISRO), Hindustan Aeronautics Limited (HAL), and various shipyards. In the private sector, they partner with companies like Godrej, Tata Power, Larsen & Toubro, Kirloskar, TCS, and Solar Industries. Their reach extends beyond India as well, with international clients including Israel Aerospace Industries, Rafale Advanced Defence Systems, and Elbit Systems.
Paras Defence & Space Technologies Limited has announced a sub-division or split of its existing equity shares in the ratio of 1:2, meaning every one share with a face value of Rs 10 will be divided into two shares with a face value of Rs 5 each. Furthermore, the company's board has recommended a final dividend of Rs 0.50 per equity share of Rs 5 for the financial year ending March 31, 2025, which will be paid post the completion of the aforementioned stock split.
According to Quarterly Results, the net sales increased by 36 per cent to Rs 108.23 crore and net profit increased by 117 per cent to Rs 20.76 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 44 per cent to Rs 364.66 crore and net profit increased by 104 per cent to Rs 61.46 crore in FY25 compared to FY24. The company has a market cap of over Rs 6,500 crore with a 1-year stock price CAGR of 100 per cent. The stock gave multibagger returns of over 120 per cent from its 52-week low of Rs 743.45 per share.
Disclaimer: The article is for informational purposes only and not investment advice.