Paras Defence and Space Technologies stock hit its 5 percent upper circuit of ₹1293.30 after the company announced a board meeting scheduled to be held on Tuesday, August 27, 2024 to raise funds.
The board will meet to consider the following matters, said the company in an exchange filing.
1. Evaluate a proposal for raising of funds, in one or more tranches, through permissible mode(s) and / or combination(s) thereof as may be considered appropriate, by way of issuance of any instruments or securities, through private placement, preferential issue, rights issue, qualified institutions placement or such other methods or combinations thereof as may be decided by the Board, subject to such approvals as may be required.
2. Introduce and implement the ‘Paras Defence and Space Technologies Limited - Employee Stock Option Plan 2024’.
This strategic move is aimed at bolstering the company’s financial position and incentivizing its workforce.
In addition to this, the company received an industrial license from the Department for Promotion of Industry & Internal Trade, Ministry of Commerce & Industry for establishing an industrial undertaking for manufacturing defence products.
This license permits Paras Defence to establish a facility for manufacturing a range of defense products, such as infrared and thermal imaging equipment, electro-optics systems, radar sub-systems, and border security surveillance systems. The license is valid for 15 years and is expected to support the company's long-term growth and innovation in defense technology.
The stock has demonstrated substantial growth, with an 81 percent increase over the past year and an 80 percent rise year-to-date. Following today's rally, the stock has surged over 112 percent from its 52-week low of ₹608.75, hit on March 28, 2024. Despite this impressive performance, it remains 19 percent below its record high of ₹1,592.75, reached on July 5, 2024.
While the stock has been relatively flat in August and experienced an 8.69 percent decline in July, it saw significant gains earlier in the year, with notable increases of 53.6 percent in June, 26.2 percent in May, and 18.7 percent in April. The stock had also faced corrections in February and March, down 10.8 percent and 15.4 percent, respectively, but showed a positive trend in January with a 12.7 percent gain.
