Paras Defence shares gain 7% after adjusting for 1:2 stock split

Shares of Paras Defence and Space Technologies Ltd. gained as much as 7% on Friday, July 4. The  upmove came after the stock began trading adjusted for its stock split announced earlier.

Earlier on April 30 this year, Paras Defence had announced that it will be splitting one share of ₹10 each, into two shares of ₹5 each. This was the first stock split that the company had announced.

Paras Defence has set July 4 as the record date for its 1:2 stock split on this day. This means that shareholders, who have the stock in their portfolio at the end of Thursday’s closing, will be eligible for the stock split.
Those buying the shares today will not be eligible for the stock split.
A stock split is generally considered by a company to increase its outstanding shares, and also improve trading liquidity by making the stock more affordable to its shareholders.

Speaking to CNBC-TV18 last month, Amit Mahajan of Paras Defence said that the company’s exposure to Israel is more focussed on tech transfer instead of exports.

Mahajan said that he had anticipated a one to two-week delay in tech transfer from Israeli companies and that the total exports exposure to Israel stood at only 5%.

However, headed that he does not see any supply chain disruption that will impact the company’s component imports.

Shares of Paras Defence settled 0.24% lower on Thursday at ₹1,692.20. The stock has risen 75% over the last six months.