Paras Defence and Space Technologies Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Paras-Defence-IPO

Paras Defence IPO: Key Details

  • Grey Market Premium (GMP) today: 200 – 210

Note: We ither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Paras Defence and Space Technologies Limited, with over 40 years of experience, are an Indian private sector company engaged in designing, developing, manufacturing a and testing of a wide range of defence an nd space engineering products and solutions.

They are one of the leading ‘Indigenously Designed Developed and Manufactured (“IDDM”) category private sector companies in India. They have two manufacturing facilities in Maharashtra, located at Nerul in Navi Mumbai and Ambernath in Thane.

They have five principal categories of product offerings: defence and space optics, defence electronics, EMP protection, heavy engineering for defence and niche technologies. Their current order book as of June 30, 2021, is ₹304.99 Cr. Their consolidated total income was ₹144.61 Cr, ₹1,49.05 Cr and ₹157.17 Cr for the fiscal years ended 2021, 2020 and 2019, respectively.

Competitive Strengths

  • Wide range of products a nd solutions for both defence and space applications
  • One of the few players in high precision optics manufacturing for spa ce a nd defence application in India
  • Strong R&D capabilities with a focus on innovation
  • Well positioned to benefit from the Government’s “Atma nirbhar Bharat” and “Make in India” initiatives
  • Strong relationships with a diverse customer base; and
  • Experienced management team

Company Strategy

  • Expansion of the production capacity
  • Strengthen the foothold in India’s expanding market
  • Continue to focus on R&D
  • Diversify products and solutions range, with focus on growth by expansion into opportunistic areas
  • Increasing its reach in the international market

Proceeds from Paras Defence IPO will be used to:

  • Purchase of machinery and equipment
  • Funding incremental working capital requirements of the Company
  • Repayment or prepayment of all or a portion of certain borrowings/outstanding loan facilities availed by the company
  • General corporate purposes

Paras Defence IPO: Financials

201920202021 Mar
Revenue from Ops₹154.40 Cr₹147.04 Cr₹143.33 Cr
Profit before Excep*₹26.81 Cr₹21.79 Cr₹22.61 Cr
Profit after Tax18.97 Cr₹19.66 Cr₹15.79 Cr
EPS (Basic)5.556.926.75
*Tax and Exceptional Items

As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS6.2126.5728.18
* Weighted Average for last 3 years

Paras Defence IPO: Comparison with listed industry peers

According to the RHP, the company does not have any comparable listed industry peers in India

Paras Defence IPO Dashboard

Issue Details

TypeValue
Issue Size₹170.78 Cr
Fresh Issue₹140.68 Cr
Offer for Sale₹30.10 Cr
Face Value₹10/- per Equity Share
IPO Price₹165 – ₹175
Lot Size85 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open21/09/2021
Bid Close23/09/2021
Allotment Finalization28/09/2021
Initiation of Refunds29/09/2021
Credit of Shares30/09/2021
Listing Date01/10/2021

Lot Size and Price

LotsSharesAmount
185₹14,875
131105₹1,93,375

Promoter Group Holding

HoldingPercentage
Pre-Issue79.40%
Post-Issue59.71%

Paras Defence IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%20,17,941 shares
NII15%15,36,856 shares
RII (Retail)35%35,85,996 shares
Employee– shares
Total100% shares

Paras Defence IPO: Risks

  • The business is largely dependent on contracts from the Government of India (“GoI”)and associated entities (defence and space research)
  • The company has executed various agreements with third parties, including in relation to securing contracts and manufacturing of products, which may impose certain obligations.
  • Any failure to protect or enforce rights to own or use trademarks and brand name and identity could have an adverse effect on the business and competitive position
  • They have sustained negative cash flows from operating and investingactivities in the past and may experience earnings declines or operating lossesor negative cash flows in the future
  • They could incur losses under the fixed price contracts as a result of cost overruns, delays in delivery or failures to meet contract specifications

For complete internal and external risk factors, you can refer to the RHP of the company.

Paras Defence IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime

C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: 022 4918 6200
Email: [email protected]

Lead Managers of the Issue

Anand Rathi Advisors Limited

10th Floor, Trade Tower D,
Kamala City Senapati Bapat Marg,
Lower Parel Mumbai 400 013
Maharashtra, India

Phone: +91 22 6626 6666
Email: [email protected]

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