Paras Defence & Space Technologies has provided an update on the proposed divestment of its majority stake in subsidiary Ayatti Innovative Private Limited. The company filed an intimation under Regulation 30 of SEBI regulations on December 26, 2025, extending the expected completion timeline for the transaction.

Updated Transaction Timeline

The aerospace and defence manufacturer has revised its completion timeline for the sale of 58.02% equity stake in Ayatti Innovative Private Limited. The company now expects the transaction to be completed by March 31, 2026, representing an extension from the previously indicated December 31, 2025 deadline.

Due Diligence Process Continues

The company disclosed that the due diligence exercise by prospective buyers is currently underway and is expected to take additional time. This comprehensive evaluation process is being conducted by potential purchasers to assess the subsidiary's financial, legal, and operational aspects before finalizing the transaction.

Financial Impact and Subsidiary Status

Ayatti Innovative Private Limited contributed nil turnover to the consolidated revenue of Paras Defence in the financial year 2023-24. The subsidiary reported a negative net worth of ₹2.55 crores as of March 31, 2024. Upon completion of the proposed transaction, Ayatti will cease to be a subsidiary of the parent company.

Transaction Structure

The company confirmed that the prospective buyers do not belong to the promoter, promoter group, or group companies. The transaction does not fall within the ambit of related party transactions. The final consideration amount has not been finalized as it remains dependent on the completion of the due diligence process.

Paras Defence will provide further intimation to stock exchanges upon execution of the final agreement and receipt of consideration from the buyers.

Paras Defence & Space Technologies has taken a significant step in enhancing India's defence capabilities by signing a licensing agreement with the Defence Research Development Organisation (DRDO), Ministry of Defence, Government of India. The agreement focuses on the transfer of technology for the Driver Night Sight (DNS) system for T-90 tanks.

Key Highlights of the Agreement

• Technology: Driver Night Sight (DNS) for T-90 Tank
• Parties Involved:
  • Paras Defence & Space Technologies Limited
  • Defence Research Development Organisation (DRDO), Ministry of Defence

Implications of the Agreement

1. Enhanced Defence Manufacturing: This partnership aims to boost India's domestic defence manufacturing capabilities.
2. Increased Indigenous Content: The agreement is expected to raise the percentage of domestically produced components in defence equipment.
3. Technological Advancement: The transfer of night vision technology for T-90 tanks signifies a step forward in India's military technological capabilities.

About the Technology

The Driver Night Sight (DNS) system is a crucial component for T-90 tanks, enabling drivers to navigate effectively in low-light conditions. This technology transfer could potentially improve the operational capabilities of India's armored forces.

Company Statement

Paras Defence & Space Technologies Limited has informed the stock exchanges about this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

While the financial terms of the agreement have not been disclosed, this partnership with DRDO could potentially open up new opportunities for Paras Defence & Space Technologies in the defence sector.

Investors and market watchers will likely keep a close eye on how this agreement impacts the company's future projects and financial performance.