Paras Defence and Space Technologies Limited is seeking shareholder approval for a material related party transaction. The company plans to engage in an omnibus arrangement with its subsidiary, Paras Anti-Drone Technologies Private Limited, for an aggregate amount not exceeding ₹15,000 crore plus applicable taxes. This transaction is proposed for a period of one year and covers various operational and financial arrangements, including the sale and purchase of goods and services, corporate guarantees, and financial support.
Paras Defence Seeks Shareholder Nod for Major Subsidiary Deal
Paras Defence and Space Technologies Limited has issued a Postal Ballot Notice seeking member approval for a significant related party transaction. The company proposes an omnibus arrangement with its subsidiary, Paras Anti-Drone Technologies Private Limited, for an aggregate amount up to ₹15,000 crore (Rupees One Hundred and Fifty Crores only), plus applicable taxes, for a period of one year.
Transaction Details and Rationale
The proposed transactions are intended to facilitate the efficient execution of business opportunities within the group. They will leverage the combined technical expertise, manufacturing capabilities, and resources of both Paras Defence and its subsidiary. These arrangements are expected to support anticipated growth in business volumes and project opportunities.
The scope of these transactions includes, but is not limited to, the sale and purchase of goods and services, allocation or execution of work orders, lease arrangements, subscription to Optionally Convertible Preference Shares (OCPS), investments, corporate guarantees, reimbursement of expenses, loans, and deposits. All transactions will be undertaken on an arm’s length basis and in accordance with applicable laws and regulatory requirements.
The company clarified that an inadvertent error occurred in the wording of the resolution regarding the tenure of the approval in the initial Postal Ballot Notice dated October 29, 2026. The corrected tenure is specified as “for a period of one year from the date of approval.” An incorrect version of the Postal Ballot Notice was uploaded on the Stock Exchanges’ websites, and the corrected version, along with this corrigendum, is being submitted.
Financial Oversight and Governance
The Audit Committee and the Board of Directors have reviewed the proposed related party transactions and confirmed that they are in the ordinary course of business and on an arm’s length basis. The Audit Committee has satisfied itself that the transaction data is financially accurate, pricing frameworks reflect arm’s-length positions, and internal controls adhere to RPT Industry Standards.
The e-voting period for this resolution begins on Thursday, November 05, 2026, at 9:00 a.m. (IST) and concludes on Friday, December 04, 2026, at 5:00 p.m. (IST).
Subsidiary Financials
For the financial year FY 2026, the subsidiary, Paras Anti-Drone Technologies Private Limited, reported a turnover of ₹41.81 crore, a profit after tax of ₹6.28 crore, and a net worth of ₹28.71 crore.
Source: BSE
