Shares of Paras Defence and Space Technologies surged as much as 10% on Tuesday to Rs 1,066.50 on the BSE after the company said it has secured a license from the Department for Promotion of Industry & Internal Trade (DPIIT) to manufacture Light Machine Guns (LMGs). The company disclosed this development in an exchange filing.The license permits the company to produce MK-46 and MK-48 belt-fed Light Machine Guns, advanced and modernized weapons with an annual production capacity of 6,000 units each. The company said that the license, granted under the Arms Act, 1959, has lifetime validity, further bolstering Paras Defence’s position in the defense manufacturing sector.Paras Defence and Space Technologies’ order book currently exceeds Rs 850 crore as the company’s contribution from the Defense Engineering business has grown during the first half of the financial year, a senior executive of the company highlighted in a recent interview to CNBC-TV18.The senior executive had added that the company is optimistic about maintaining or slightly improving its profit margins, reflecting its cautious yet confident outlook. The company’s stock remains 40% below its previous peak of Rs 1,592.7.Paras Defence garnered significant attention during its IPO, which was one of India’s most subscribed offerings, with over 300 times subscription and bids exceeding Rs 38,000 crore during its three-day issuance.Paras Defence and Space Technologies is a leading private-sector enterprise specializing in the design, development, manufacturing, and testing of cutting-edge products and solutions in the defence and space sectors. The company’s operations are structured into four core segments: defence & space optics, defence electronics, heavy engineering, and electromagnetic pulse protection solutions.Also read | Zomato shares fall 5% following Jefferies downgrade, target price slashed to Rs 275(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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