Shares of Zen Technologies rose 9% in intraday trade on Thursday, hitting a fresh high of Rs 354.90 on the BSE after its board approved the allotment of more than 4 million equity shares to investors for conversion into mandatory convertible debentures (CCDs).

Shares of India’s leading provider of counter-drone technology and defence training solutions have risen 93% through 2023, compared with a gain of less than 1% for the S&P BSE Sensex.

Zen Technologies is engaged in the indigenous design, development and manufacture of defence training systems, drones and anti-drone solutions based on sensor and simulator technology and has been relentlessly providing defence training solutions to the Ministry of Defence (Armed Forces), Security Forces Police And seamless services and paramilitary forces.

Zen Technologies today said its board has approved the allotment of 4.06 million equity shares of Re 1 each on the conversion of compulsorily convertible debentures (CCDs) to CCD holders belonging to the public category. The board also approved the allotment of 469,333 equity shares on conversion of convertible warrants to warrant holders belonging to the promoter category.

The company will allot more than 1 million shares to the University of Notre Dame DU LAC (1.41 million) and investor Mukul Mahavir Agrawal (1.13 million).

Meanwhile, in fiscal year 2023 (FY23), Zen Technologies posted strong earnings, with stand-alone profit after tax (PAT) rising 1,763% YoY to Rs 3,764 crore. The company posted an after-tax profit of Rs 20.2 lakh for the 2022 financial year.

Revenue rose 201% year-on-year to Rs 161.44 crore. EBITDA improved significantly from 12.34% in FY22 to 34.62% in FY23.

As of March 31, 2023, the company has an order book of approximately Rs 473 crore. According to management, the company has tendered many orders and the results are expected to be announced in H1FY24.

Management expects to secure some orders under the emergency purchase program, which will further accelerate the company’s growth. Also optimistic about the prospects of the export market.