Shares of Paras Defence and Space Technologies Ltd. were in the limelight on Monday after the company announced that shareholders have formally approved a 1:2 stock split, marking the first-ever stock split in the firm’s history.
The development comes following a postal ballot vote concluded on June 7, 2025, with an overwhelming 99.995% shareholder approval, as per the company’s regulatory filing dated June 9.
📉 Market Reaction
Despite the positive news, Paras Defence shares declined 2.39%, closing at ₹1,607.20 on the BSE—down from the previous close of ₹1,646.60. The company's market capitalization stood at approximately ₹6,476 crore.
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📊 Volume traded: 0.66 lakh shares
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💰 Turnover: ₹10.60 crore
📅 What’s Next: Awaiting Record Date
Investors are now eyeing the record date announcement, which will determine eligibility for the stock split. A stock split typically makes shares more affordable by increasing the number of shares in circulation while reducing the face value per share.
🧾 In this case, the 1:2 split means every existing share will be split into two shares, effectively halving the stock price without changing the company’s market cap.
💰 Dividend & Earnings Boost
Alongside the stock split, Paras Defence also announced its first-ever dividend of ₹0.50 per share during its Q4 FY25 earnings report on April 30.
🔼 Q4 FY25 Highlights:
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Net Profit: ₹19.7 crore, up 97% YoY (from ₹10 crore)
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Revenue: ₹108.2 crore, up 35.8% YoY (from ₹79.7 crore)
This strong performance underpins growing investor interest in the defence sector and sets the stage for sustained momentum in Paras Defence’s growth trajectory.
🧠 Why This Matters
Stock splits typically aim to:
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Improve stock liquidity
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Attract new retail investors
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Signal management’s confidence in long-term growth
With the defence sector gaining traction amid rising government focus on indigenization and tech-driven solutions, Paras Defence’s bold moves could strengthen its positioning in the mid-cap space.
🔍 Stay tuned for the official record date and potential rally post-split.
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