Paras Defence, Israel-Based Heven Drones Form JV To Produce Logistics And Cargo Drones
The shareholding of Paras Defence in the proposed company will be 51%, while Heven Drones will have 49% of the share.
Paras Defence and Space Technologies Ltd. announced on Friday that it has executed a joint venture agreement with Israel-based Heven Drones Ltd., to facilitate the formation of a subsidiary company in India.
The company's board has approved the JV for the purpose of development and production of logistics and cargo drones for defence and civil market. This is in accordance with the Government of India's 'Make in India' initiative, the company said in an exchange filing. "Post the investment, the proposed subsidiary will be a related party of Paras Defence," it said.
Paras Defence and Space Technologies does not have any shareholding in Heven Drones or its group companies.
The shareholding of Paras Defence in the proposed company will be 51%, while Heven Drones will have 49% of the share. Paras Defence will subscribe to 5,100 equity shares of Rs 10 each aggregating to Rs 51,000.
"Each party has right to nominate two directors on the board of the proposed company. Both parties have pre-emptive right in case of issuance of equity shares. Standard clauses on restriction on transfer of shares, event of default have been incorporated in the Joint Venture agreement," the company said.
The proposed authorised share capital includes Rs 1 lakh divided into 10,000 equity shares of Rs 10 each. The proposed company's equity shares will be issued to Paras Defence and Heven Drones at face value.
Shares of Paras Defence closed 1.01% higher at Rs 1,633.2 apiece, compared to 0.99% advance in the benchmark NSE Nifty 50. The stock has risen 110.14% in the last 12 months and 62.34% on a year-to-date basis.
The one analyst tracking the company recommends a 'hold', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 7.9%.
