Paras Defence shares rise 1% after firm forms JV with Israel's Heven Drones to make cargo drones in India

Paras Defence

The shares of Paras Defence sharply jumped over 1 percent on May 23 after the company announced that it has formed a joint venture with Israel's Heven Drones to form a company for the production of cargo drones. The shares closed at Rs 1,633 apiece, recovering all losses which were recorded earlier during the day.

In an exchange filing, Paras Defence announced that it has signed a joint venture agreement with Israel's Heven Drones to form a subsidiary company in India. The newly built company will develop and produce the cargo drones for defence and civil market. Paras Defence will hold a majority stake of 51 percent in the company, while Heven Drones will hold the rest of the stake.

The subsidiary company will be formed in accordance with Indian government's 'Made in India' push, Paras Defence further said in its press release. "Each party has right to nominate 2 Directors on the Board of the proposed Company. Both parties have pre-emptive right in case of issuance of equity shares," it added.

Notably, Paras Defence on May 5 had announced that it has formed a MoU (Memorandum of Understanding) with the foreign company to "create new opportunities and expand both parties' business in the Indian and Global Defence sector". It had also revealed the intention to form a JV in India for the development and production of logistics and cargo drones for defence and civil market.

Paras Defence shares have seen a significant surge in recent days, accompanying its defence peers. This came on the back of 'Operation Sindoor' and heightened geopolitical uncertainties.

Also read: Our LIVE updates on stock market