Paras Defence and Space Technologies Ltd. has said that its Board of Directors will shortly convene to discuss a proposal for splitting the equity shares of the company, which could make the high-flying defence stock more accessible to retail investors and improve trading liquidity.
Key Highlights:
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The board meeting is convened on February 8, 2025, when the key agenda is to consider an equity share split. It is the first such corporate action in the past few years for the company, whose share price has risen to more than ₹1,070, with a 52-week high of ₹1,592.70.
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A share split generally lowers the face value of each share and increases the number of outstanding shares, making the stock more accessible for small investors without impacting the company's overall market capitalization.
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Paras Defence has been on a growth path, posting strong financials with a PE ratio of 80.41 and a market cap of over ₹4,300 crore. The firm has also been busy with strategic endeavors, such as new technology alliances and recent disposals to rationalize its portfolio.
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The move comes amid a period of strong institutional interest, with both domestic and foreign institutional investors increasing their stakes in the company over the past year.
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Investors are watching closely, as a share split could enhance liquidity and potentially attract a broader base of shareholders, supporting the company’s long-term growth ambitions.
Stay tuned for the board’s decision, which could mark a new chapter for Paras Defence’s dynamic journey.
Sources: Moneycontrol, Economic Times, Finology Ticker