Defence stock: This multibagger is set to see a stock split next week
The firm announced its first stock split, set for July 4. The shares currently trade at Rs 1,627, marking a substantial increase from the IPO price of Rs 175.
- Jun 27, 2025,
- Updated Jun 27, 2025 1:17 PM IST
Paras Defence and Space Technologies Ltd. is set to execute its first stock split next week. The company announced on April 30, 2025, a division of one Rs 10 share into two Rs 5 shares. The record date has been scheduled for Friday, July 4, 2025, meaning that shareholders on record by Thursday's market close will qualify for the split.
The strategic move aims to increase liquidity and make the shares more attractive to investors. By making shares more accessible, the company hopes to broaden its investor base and enhance market activity, thus strengthening its financial position.
Shares of Paras Defence are up 0.87% at Rs 1624.10 in the current session against the previous close of Rs 1614.15 This marks a nearly tenfold increase since its initial public offering (IPO) price of Rs 175.
The IPO, launched in 2021, garnered substantial attention with a subscription rate of 304 times, highlighting significant investor interest. The stock's performance has been robust since its market debut, showing considerable growth potential. Investors have shown confidence in the company's trajectory, reflected in the strong market performance and sustained interest.
Paras Defence reported a 97% rise in its net profit to Rs 19.7 crore from the Rs 10 crore profit it reported during the same quarter last year. Revenue for the company climbed 35.8% from the year-ago period to Rs 108.2 crore. Revenue for last year's quarter stood at Rs 79.7 crore.
Paras Defence's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at Rs 28.3 crore from Rs 3.4 crore last year, while margins expanded by nearly 10 percentage points to 26.2% from 15.6% last year.
This stock split comes as Paras Defence seeks to enhance shareholder value and improve market participation. The company, which has seen impressive gains since its IPO, seems poised to benefit from the increased accessibility that a stock split typically provides.
The move aligns with Paras Defence's broader strategy to fortify its market presence and attract a wider base of investors by making its shares more affordable. By lowering the price per share, the company anticipates increased trading volume and liquidity, which are crucial for sustained growth and stability in the market.
Paras Defence and Space Technologies Ltd. is set to execute its first stock split next week. The company announced on April 30, 2025, a division of one Rs 10 share into two Rs 5 shares. The record date has been scheduled for Friday, July 4, 2025, meaning that shareholders on record by Thursday's market close will qualify for the split.
The strategic move aims to increase liquidity and make the shares more attractive to investors. By making shares more accessible, the company hopes to broaden its investor base and enhance market activity, thus strengthening its financial position.
Shares of Paras Defence are up 0.87% at Rs 1624.10 in the current session against the previous close of Rs 1614.15 This marks a nearly tenfold increase since its initial public offering (IPO) price of Rs 175.
The IPO, launched in 2021, garnered substantial attention with a subscription rate of 304 times, highlighting significant investor interest. The stock's performance has been robust since its market debut, showing considerable growth potential. Investors have shown confidence in the company's trajectory, reflected in the strong market performance and sustained interest.
Paras Defence reported a 97% rise in its net profit to Rs 19.7 crore from the Rs 10 crore profit it reported during the same quarter last year. Revenue for the company climbed 35.8% from the year-ago period to Rs 108.2 crore. Revenue for last year's quarter stood at Rs 79.7 crore.
Paras Defence's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at Rs 28.3 crore from Rs 3.4 crore last year, while margins expanded by nearly 10 percentage points to 26.2% from 15.6% last year.
This stock split comes as Paras Defence seeks to enhance shareholder value and improve market participation. The company, which has seen impressive gains since its IPO, seems poised to benefit from the increased accessibility that a stock split typically provides.
The move aligns with Paras Defence's broader strategy to fortify its market presence and attract a wider base of investors by making its shares more affordable. By lowering the price per share, the company anticipates increased trading volume and liquidity, which are crucial for sustained growth and stability in the market.