Paras Defence Share Price Dips Over 6% After Promoter Stake Sale

Market Performance

Paras Defence's share price fell sharply by more than 6% on May 20, following bulk stake sales by three of its promoters. The stock hit an intraday low of ₹1,620.50 on the National Stock Exchange (NSE) at around 9:50 AM.

Despite the dip, the stock closed the previous session at ₹1,707.70 after reaching an all-time high of ₹1,943.60 during the day.

Stake Sale Details

On May 19, three key promoters offloaded a significant chunk of their shares through block deals, triggering the price decline:

• Sharad Virji Shah sold 9 lakh shares at an average price of ₹1,682.87 per share.
• Anish Hemant Mehta sold 2.17 lakh shares at ₹1,664.62 each.
• Kaajal Harsh Bhansali sold 2.17 lakh shares at the same price of ₹1,664.62 per share.

Together, these promoters sold a total of 13.34 lakh shares, representing:

• 5.8% of the promoters' total holdings.
• 3.3% of the company's total outstanding shares.

Company Details

As of the March 2025 quarter, Paras Defence promoters hold a combined stake of 57.05% in the company. The individual holdings are:

• Sharad Shah: 18.05%
• Anish Mehta: 3.53%
• Kaajal Bhansali: 3.53%

Paras Defence & Space Technologies launched its Initial Public Offering (IPO) in September 2021, priced at ₹175 per share. Since then, the stock has gained substantial ground, reflecting growing investor interest in India's domestic defence manufacturing sector.

Defence Sector Context

The Indian defence sector has gained strong momentum recently, highlighted by Operation Sindoor, which showcased India's growing self-reliance in defence production.

• The Nifty India Defence Index has surged over 50% since February 2025.
• The index recovered from a prior 33% correction.
• In May alone, the index posted a 9% gain.

Only six defense stocks have surpassed their previous highs, including Paras Defence, while others remain below their peak levels.

Summary

Paras Defence's share price slipped over 6% following bulk stake sales by three promoters, totaling 13.34 lakh shares or 3.3% of the total equity. Despite the dip, the company remains a key player in India's growing domestic defence manufacturing landscape.

The broader defence sector attracts investor attention, driven by increased defence budgets and strong government policies like Make in India and Atmanirbhar Bharat, supporting long-term growth prospects.