Paras Defence shares hit a day’s high of Rs 1,244 on Wednesday, 22 July, after its unit signed a Rs 6,200 crore chip plant deal in Madhya Pradesh.

Paras Semiconductors, a wholly owned subsidiary of Paras Defence, signed a Memorandum of Understanding with the state’s electronics body, MPSeDC.

The two sides plan to jointly set up a new chip packaging plant in the Indore-Ujjain belt. The facility is what is known as an OSAT unit.

In simple terms, this is where finished semiconductor chips get packaged and tested before they are fitted into phones, cars, or defence equipment. Paras plans to invest close to Rs 6,200 crore in building it.

The plant will carry out several kinds of advanced chip packaging work. This includes stacking chips together, wafer processing, and testing them for reliability before they are shipped out.

This is not the only development keeping the stock in focus. Paras Defence had earlier signed an IP licensing deal with a US firm, Tandem Defence LLC, to bring its Guardian-1 counter-drone technology into India.

Earlier this month, the government had also cleared defence deals worth Rs 52,000 crore across the Army, Navy and Air Force, a move that had already put defence names like Paras on investors’ radar.

The stock has had a strong run this year. It’s up over 54% since January and more than 50% over the past 12 months, even though it has cooled off nearly 12% in the last month. The company is yet to announce a date for its Q1 FY27 results.

At around 11:19 am, shares of Paras Defence were trading at Rs 1,223.50, up 0.07% for the day, not far from the high it touched earlier in the session.

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