Shares of Paras Defence and Space Technologies Ltd skyrocketed 10% on Tuesday, 7 January, after the company announced receiving a license under the Arms Act 1959.

The Department for Promotion of Industry & Internal Trade (DPIIT) has granted it permission to produce Belt-fed light machine guns (LMGs) of the MK-46 and MK-48 in accordance with the Arms Act of 1959. The company’s updated, renovated, and redesigned LMG is expected to have an annual capacity of 6000 pieces each, according to its 7 January exchange filing. The license has a lifetime validity. 

The company’s strong financial performance was demonstrated by the 45% year-over-year rise in net profit in the second quarter of FY2025. The net profit rose from Rs 8.76 crore in the same quarter of the previous fiscal year to Rs 12.70 crore, according to a stock exchange announcement. During the same period last year, the EBITDA margin climbed from 25.3% to 26.1%.

Paras Defence was one of the most heavily subscribed initial public offerings (IPOs) in India, with over 300 subscriptions. The IPO received bids totalling more than Rs 38,000 crore during its three-day span.

The company received an order from the Ministry of Defence, Government of India (Dehradun), for around Rs 61.43 crore (taxes included) last November from the Instruments Research and Development Establishment (IRDE). The order required an update of the Optronic Periscope Sight with Accessories, including ESM Warner, for the Indian Naval Submarine Application.

At 12:24 pm, the shares of Paras Defence were trading 8.83% higher at Rs 1,054.75 on NSE.

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