Paras Defence and Space Technologies IPO Review 2021: Paras Defence and Space Technologies will be the fourth major IPO to hit the markets this month. The IPO will be open from September 21st to September 23rd. They aim to raise Rs 1,70.78 crores through the public offering.
In this article, we look into important information on the Paras Defence and Space Technologies IPO and find out the possible prospects of the company. Keep reading!
About the Company
Paras Defence and Space Technologies Ltd. is engaged in designing, developing, manufacturing, and testing a range of Defence and space engineering products and solutions.
What sets Paras apart is that it is one of the few players in the private sector encouraging locally designing, developing and manufacturing in its niche. The company products fall into 5 key categories military & space optics, Defence electronics, electro-magnetic pulse protection solutions, and heavy engineering.
Paras Defence and Space Technologies is also the only Indian company that has the design capability and which provides essential imaging components for space-optics and optomechanical assemblies. It is one of the top optics providers for various Indian Defence projects and space programs.
The company produces up to 33 different products for this niche. They also produce customized products for various Defence projects. Their clients include the following:
- Defence R&D Organisation
- Bharat Electronics
- Hindustan Aeronautics Limited
- Bharat Dynamics Ltd
- Israel Aerospace Industries
- Rafael Advanced Defense Systems
- L & T
- Godrej & Boyce
- Tata Consultancy Services
- Tata Power
Apart from these, the company’s international clients span across various countries like Belgium, Israel, and South Korea.
Paras Defence and Space Technologies currently have 2 manufacturing plants in Maharashtra. They are also currently in the process of expanding one of their manufacturing facilities. The company also has state of the art facilities which it uses along with a workforce of 400 employees. They do not have listed peers in India.
Grey Market Premium
The shares of Paras Defence and Space Technologies traded at a 60% premium in the grey market before the IPO on 16th September. The shares traded at a price of Rs.280 giving them a premium of Rs 105 over their issue price band of Rs 165-175 per share.
Key IPO Information
The promoters of the company are Sharad Virji Shah and Munjal Sharad Shah. The issue also includes an Offer for Sale of Rs. 30.18 crore. This includes the sale of 3 lakh shares by Ami Munjal Shah, 62,245 shares by Shilpa Amit Mahajan and 62,245 shares of Amit Navin Mahajan. The promoters have appointed Anand Rathi Advisors as the lead managers to the issue. Link Intime India has been appointed as the registrar of the issue.
|IPO Size||₹170.78 Cr|
|Fresh Issue||₹140.60 Cr|
|Offer For Sale(OFS)||₹30.18 Cr|
|Opening Date||Sep 21, 2021|
|Closing Date||Sep 23, 2021|
|Face Value||₹10 per equity share|
|Price Band||₹165 to ₹175 per equity share|
|Lot Size||85 Shares|
|Minimum Lot Size||1|
|Maximum Lot Size||13|
|Listing Date||Oct 1, 2021|
Purpose of the IPO
The funds raised from the Rs.140.60 crore issue will be used for the following purposes
- Capital Expenditure Requirements
- Working capital requirements
- Repayment or Prepayment of borrowings
- Other General Corporate Purposes.
In this post, we covered the Paras Defence and Space Technologies IPO Review. The IPO opens on 14th September and closes on 16th September 2021.
For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of the company.
Do let us know what you think of the Paras Defence and Space Technologies IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.