Stocks

IPO Screener: Paras Defence subscribed 16.57 times

KS Badri Narayanan Chennai | Updated on September 22, 2021

Retail portion received bids for 31.36 times

The initial public offering of Paras Defence and Space Technologies, which opened on Tuesday, saw a robust response from investors. The price band of the issue is ₹165-175 a share. The portion reserved for retail investors was subscribed 31.36 times and the Non-Institutional Investor category was subscribed 3.77 times. While the Qualified Institutional Buyer category was subscribed 0.01 times, the issue was subscribed 16.57 times overall.

The offer comprises of a fresh issuance of equity shares aggregating up to ₹140.60 crore and an offer for sale of up to 17,24,490 equity shares by selling shareholders worth ₹30.18 crore. Market lot is 85 shares.

The IPO closes on Thursday (September 23).

Paras Defence and Space Technologies, one of the ‘Indigenously Designed Developed and Manufactured Company’ category private sector companies in India, on Monday raised ₹51 crore from anchor investors.

The company has allocated 29,27,485 equity shares at an upper band of ₹175 a share to anchor investors such as Ashoka India Equity Investment Trust, Abakkus Emerging Opportunities Fund, Saint Capital Fund, Nippon Small Cap Fund and HDFC Focused 30 Fund.

The company will use the funds for capital expenditure requirements, working capital requirements, repayment or prepayment of all or a portion of certain borrowings/outstanding loan facilities availed by the company and general corporate purposes.

Anand Rathi Advisors Limited is the book running lead manager to the offer.

About Paras Defence

The company is primarily engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions.

It caters to five major segments of Indian defence sector: 1) defence and space optics, 2) defence electronics, 3) electromagnetic pulse (EMP) protection solution, 4) heavy engineering, and 5) niche technologies.

The company is in the process of developing several new products and solutions, such as hyper spectral space camera, ARINC-818 based avionic display and naval periscopes, and multi and hyper spectral cameras for drones and space, UAVs, cube sats and anti-drone systems.

Notably, the flagship product of its subsidiary - Paras Aerospace Pvt Ltd - will be a cloud-based NPNT solution (offered as software-as-a-service) and indigenous multispectral camera for various applications including agriculture; and Paras Anti-drone Technologies aims to be one of the first indigenous anti-drone technology development companies in India.

The company has two manufacturing facilities in Maharashtra, located in Navi Mumbai and Thane.

The company derives most of their revenue under the contracts from the government arms and associated entities, such as defence public sector undertakings and government organisations involved in space research

The company has two manufacturing plants in Maharashtra and is in the process of expanding its current manufacturing facility at Nerul in Navi Mumbai.

Published on September 22, 2021

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