Paras Defence Signs MoU With Israel's Cielo; Shares Rise Nearly 3%

Paras Defence and Space Technologies Ltd.’s share price rose nearly 3% on Tuesday after the company signed a Memorandum of Understanding with Israel based Cielo Inertial Solutions Ltd.

The company informed in an exchange filing on Tuesday that, “Paras Defence and Space Technologies Ltd. has signed a Memorandum of Understanding with Cielo Inertial Solutions Ltd., Israel.”

The company also said that Cielo is a global technology expert in inertial solutions and an Israeli manufacturer of Closed Loop FOGs, IMUs, GyroCompass, North Finding Systems and INS.

Paras and Cielo will combine their respective capabilities in order to promote and pursue opportunities in India for the adaptation, marketing, sale and production of Inertial Sensors and Closed Loop FOG based Inertial Solutions, the exchange filing said.

Paras Defence is Tier 2 Defence Engineering Company offering a range of defence products & solutions. The company has exclusive capabilities from Concept to Commissioning in the area of Defence Electronics, Defence & Space Optics and Defence Heavy Engineering, the company said on its website.

"We are the only company in India to manufacture Infrared Optics in large quantities. Our company has been significantly contributing to most of the prestigious Defence & Space Programs of our country," the company's website said.

The scrip rose as much as 2.70% to Rs 726.70 apiece. It pared gains to trade 1.24% higher at Rs 716.50 apiece, as of 09:52 a.m. This compares to a flat NSE Nifty 50 Index.

It has risen 34.26% in the last 12 months. The relative strength index was at 53.

Out of one analysts is tracking the company, and they maintain a buy rating, with no 'hold,' or 'sell,' suggestions on the script according to Bloomberg data. There is also no average 12-month consensus price target for the scrip.