Paras Defence and Space Technologies Limited witnessed a sharp rise in its share price by 8% after the company announced its receipt of a lifetime license to manufacture advanced light machine guns (LMGs) under the Arms Act, 1959. This key approval, granted by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, is a significant milestone for the company.
Key Details of the License:
- Production Scope: Paras Defence has been authorized to manufacture up to 6,000 units annually of the MK-46 and MK-48 Belt-fed Light Machine Guns.
- Product Overview: The MK-46 and MK-48 models represent modernized, enhanced, and redefined firearms tailored for superior performance in modern combat scenarios.
- Validity: The license is valid for a lifetime, providing long-term strategic benefits for the company.
Strategic Significance:
The development positions Paras Defence as a key player in India’s burgeoning defence manufacturing ecosystem. The production of these advanced LMGs aligns with the country’s “Atmanirbhar Bharat” vision, emphasizing self-reliance in critical defence technologies and reducing dependency on imports.
Market Reaction:
This announcement has significantly boosted investor confidence, leading to an 8% surge in Paras Defence’s share price, reflecting market optimism regarding the company’s strengthened position in the defence sector.
