First-Ever Stock Split: Paras Defence Secures Shareholders’ Nod To 1:2 Subdivision, Record Date Awaited

Paras Defence and Space Technologies Ltd. shares gained up to 2% in morning trade on Tuesday after the company announced securing approval of shareholders for its first-ever stock split proposal.

In a filing to the stock exchanges on June 9, the company said that it has received shareholders’ approval for sthe ubdivision of equity shares or stock split.  

According to the exchange filing, 99.99% of the shareholders approved the decision at the Annual General Meeting on June 7.

The promoter and promoter group and public institutions voted 100% in favour of the proposal. Public non-institutions supported the move 99.91%.

In a filing dated June 9, the company said, "This is to inform you that the shareholders of Paras Defence and Space Technologies Limited (the "Company") have approved sub-division/split of equity shares and alteration of Capital Clause of the Memorandum of Association ("MoA") of the Company by way of Ordinary Resolution through Postal Ballot on June 7, 2025."

Previously, on April 30, in an exchange filing announcing the outcome of the Board of Directors’ meeting to consider Q4 results, the company said, “The sub-division/ split of existing 1 (one) equity share of face value of Rs. 10/- (Rupees Ten Only) each, fully paid- up into 2 (Two) equity shares of face value of Rs. 5/- (Rupees Five Only) each, fully paid- up, subject to shareholders’ approval.”

The company has not announced the record date for the stock split yet. After the shareholders’ approval, the record date announcement is expected soon.

In the April 30 exchange filing, the company said, "The record date for the purpose of the above sub-division/ split of equity shares shall be decided after obtaining approval for sub-division/split from the shareholders through postal ballot, electronic voting process and will be intimated in due course."

The company reported a 117% year-on-year (YoY) jump in consolidated net profit to Rs 20.83 crore in Q4 FY25 from Rs 9.6 crore in Q4 FY24. Total income rose 31.83% YoY to Rs 112.28 crore in Q4 FY25 from Rs 85.17 crore in Q4 FY24. Total expenses increased 17.17% YoY to Rs 85.64 crore in Q4 FY25 from Rs 73.09 crore in Q4 FY24.

The Board of Directors also recommended the payment of a final dividend of Rs 0.5 per equity share of Rs 5 each for FY25.

Shares of Paras Defence rallied up to 1.82% to hit an intraday high of Rs 1,637 apiece on the NSE on Tuesday. However, the stock pared some of its early gains to trade 0.28% higher at Rs 1,612.1 apiece on the NSE at 11:20 a.m., while the benchmark Nifty50 was up 0.06% at  25,117.65.

Shares of Paras Defence and Space Technologies Ltd. were trading flat at Rs 1,609.10 apiece on the NSE. They touched an intraday high of Rs 1,637. This compares to a 0.13% rise in the benchmark Nifty 50 at 25,136.35.