Paras Defence secures Rs. 42.05 crore contract for electronic sub-systems
Team FS
30/Oct/2024
Key Points:
- Paras Defence has received a new order worth Rs. 42.05 crore from Opto Electronics Factory.
- The contract involves the supply of five types of electronic control sub-systems for the Indian Armed Forces.
- The order will be executed over the next 24 months, reflecting robust business potential in the domestic defence sector.
Paras Defence and Space Technologies Limited has announced that it has received a significant order from Opto Electronics Factory (OLF), a unit under India Optel Ltd.—an enterprise of the Government of India’s Ministry of Defence. The order, valued at approximately Rs. 42.05 crores (plus taxes), reflects Paras Defence's increasing involvement in critical defence systems for India.
The newly bagged order involves the supply of five types of electronic control sub-systems. These systems will be integrated into the Thermal Imaging Fire Control Systems (TIFCS), which the Opto Electronics Factory delivers to the Indian Armed Forces. Paras Defence's contribution to such sophisticated defence technologies underlines its growing capabilities in indigenous defence manufacturing.
The complete execution of this contract is expected to be accomplished within 24 months, boosting the company’s revenue stream and showcasing its expertise in executing high-value projects for defence clients. This contract is part of Paras Defence’s broader engagement with the Ministry of Defence, solidifying its role as a reliable partner for advanced military solutions.
Order Specifications and Details:
- Awarding Entity: Opto Electronics Factory (OLF), part of India Optel Ltd., Ministry of Defence, Dehradun
- Nature of Order: Supply of five types of electronic control sub-systems
- Application: Sub-systems used within Thermal Imaging Fire Control Systems (TIFCS)
- Value of Order: Rs. 42.05 crores (plus taxes)
- Execution Timeline: 24 months from the order date
- Type of Contract: Domestic defence contract
This order does not involve any related party transactions and has been awarded through a fair and competitive process. Paras Defence has confirmed that neither the promoter group nor related entities have any interest in the awarding company.
The deal adds further momentum to Paras Defence’s portfolio of high-impact defence projects, helping the company strengthen its position within the domestic defence sector. The company’s leadership in manufacturing defence electronics has been bolstered by this latest collaboration, which aligns with the Government of India’s efforts to promote Make in India in the defence space.
With the stock markets closely following the developments at Paras Defence, the company's recent order announcement is likely to attract significant attention from investors. As India continues to modernize its military capabilities, contracts like these are expected to play a pivotal role in enhancing indigenous production and reducing reliance on foreign suppliers.
This update reflects Paras Defence’s strategic ability to capture high-value orders within the domestic market, further boosting its financial outlook and ensuring sustained growth over the next two years.
Also Read : Nifty 50 ends at 24,340.9 (-126 points), Sensex slips 426.9 points to 79,942.18
The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Swiggy, ACME Solar Holdings.
The current active IPO is Afcons Infrastructure Limited.
For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.
Join our Trading with CA Abhay Telegram Channel for regular stock market trading and investment calls by CA Abhay Varn, a SEBI Registered Research Analyst. Stay updated with the latest in share market news and IPO updates by joining the Finance Saathi Telegram Channel.
Start your stock market journey today by opening a free demat account with Choice Broking FinX.