Shares of Paras Defence and Space Technologies Ltd fell sharply by over 5% on Tuesday, trading at ₹1,620 on the NSE as of 9:47 AM, down ₹87.80 or 5.14% from the previous close. The decline comes a day after multiple bulk deals revealed that promoters trimmed their stakes in the defence manufacturing firm following a massive price rally.
According to NSE data, promoter group members — Sharad Virji Shah, Anish Mehta, and Kaajal Bhansali — offloaded a total of 13.34 lakh shares in Paras Defence on Monday. The sales were executed at prices ranging between ₹1,662 and ₹1,682 per share. Sharad Virji Shah alone sold 9 lakh shares, while Anish and Kaajal each sold over 2.17 lakh shares.
As of March 31, 2025, Sharad Shah held 18.05% stake in the company, while Anish Mehta and Kaajal Bhansali owned 3.53% each. The combined stake sold on Monday amounts to 5.8% of the total promoter holding and 3.3% of the total outstanding equity.
This selling activity follows a steep rally in the stock, which has more than doubled from its March 6 closing price of ₹834.95 to a record high of ₹1,943.60. The company’s stock had been a key outperformer in the defence segment, gaining over 106% in the last two and a half months.
The broader rally in Indian defence stocks was fueled by strategic developments such as Operation Sindoor and renewed emphasis by Prime Minister Narendra Modi on self-reliant defence capabilities. However, analysts have now turned cautious.
Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Even though the defence segment has bright medium- to long-term prospects, their valuations have become excessive. Some profit booking in this segment would be appropriate.”
As investors digest the stake sale by promoters and reassess valuations, Paras Defence has emerged as a top loser in Tuesday’s session.
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