Shares of Paras Defence & Space Technologies Ltd. surged nearly 6% on Thursday, after signing a Memorandum of Understanding with the Maharashtra government.
The defence company signed an agreement with the Maharashtra government for the proposed Optics Park project, according to an exchange filing on Wednesday. The company will invest Rs 12,000 crore in the project over 10 years.
The Optics Park is expected to generate around 2,000 direct employment opportunities and has the potential to become India's first Technology Hub for Optics and Optical Technologies, it said.
NDTV Profit earlier reported that Paras Defence is eyeing a $1 billion opportunity in the optical system space, with plans to set up a development park with an outlay of Rs 500 crore.
The defense product manufacturer plans to set up an optical systems development park and said it was in talks with Maharashtra and Karnataka governments to acquire 20 acres of land for the facility.
"This will be India's first optics park that will be a one-stop shop for high-end design, manufacturing, and testing of optical systems used for automotive cameras to very high-end space cameras," Managing Director, Munjal Sharad Shah, said earlier.
Paras Defence Share Price Today
Paras Defence stock rose as much as 5.78% before paring gains to trade 4.26% higher at Rs 1,076.5 apiece as of 10:04 a.m., compared to a 0.23% advance in the benchmark Nifty 50.
The shares have risen 47% during the last 12 months. Total traded volume so far in the day stood at 3.1 times its 30-day average. The relative strength index was at 54.
One analyst tracking the company has a 'hold' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 3%.
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