Shares of Paras Defence and Space Technologies Limited were trading in the green and 1% higher on 12 January after the company announced the incorporation of its new subsidiary, Mechtech Thermal Private Limited.

In its regulatory filing, the company said that they have incorporated a wholly-owned subsidiary, Mechtech Thermal Private Limited, to design, develop, and validate thermal products for the aviation, defence & space, and related industries using cutting-edge technologies.

The company will subscribe to 70,000 equity shares of Rs 10 each of Mechtech Thermal Private Limited, aggregating to Rs 7,00,000.

Mechtech Thermal Private Limited is a private company that was incorporated on 11 January 2024 under the provisions of the Companies Act 2013 and has its registered office in the state of Telangana, India.

In its quarterly report for July-September, Paras Defence reported an 11% year-on-year increase in its net profit to Rs 10 crore from Rs 9 crore reported in the same quarter of the previous fiscal year.

With a small-cap market capitalization of Rs 3,000 crores, the company’s stock has given a return of 32% in a period of one year and a return of 13% increase in the last six months.

At 3:30 pm, the shares of Paras Defence shed all their early gains and closed 0.48% lower at Rs 770.70 on NSE.