Paras Defence & Space Technologies has officially incorporated its semiconductor subsidiary following board approval on January 19, 2026. The company informed stock exchanges about the establishment of "Paras Semiconductors Private Limited" under Regulation 30 of SEBI Listing Regulations.

Subsidiary Incorporation Details

The board of directors approved the incorporation of the new subsidiary with specific capital structure and operational focus. The subsidiary will concentrate on state-of-the-art advanced heterogeneous packaging and 3D packaging OSAT (Outsourced Semiconductor Assembly and Testing) operations.

Technology Focus Areas

The semiconductor subsidiary will target high-growth technology segments including artificial intelligence, high-performance computing (HPC), networking, and data center applications. This positioning aligns with the increasing demand for advanced semiconductor packaging solutions in these sectors.

Strategic Business Expansion

This incorporation represents Paras Defence's strategic diversification beyond aerospace and defence into the semiconductor industry. The company will hold a 70% stake in the subsidiary through cash subscription, with the investment structured as an arm's length transaction.

The subsidiary's focus on OSAT services positions it in the semiconductor assembly and testing market, which provides critical services for semiconductor device manufacturing and packaging.

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.