Paras Defense and Space Technologies, India’s most progressive tier-2 defense engineering company, has announced that the company’s first public offer (IPO) will open for subscription on September 21. This window for subscription will remain open till 23 September. The shares of the company will be listed on BSE and NSE. The company is planning to raise around Rs 170.7 crore with its IPO at the upper end of the price band. The allotment will take place on September 28, refund will be on September 29, however, the tentative date of listing on the exchanges is October 1, 2021. The issue involves issue of fresh equity shares of Rs 140.6 crore with a face value of Rs 10. and Offer for Sale (OFS) of 17,24,490 equity shares by the promoters of the company. At the higher level of the price band, the total OFS by the promoters is Rs 30.17 crore and the company is looking to raise Rs 170.77 crore through IPO.
10 important things investors should know before subscribing to Paras Defense IPO:
1. Paras Defense IPO Price Band
Paras Defense and Space Technologies has fixed a price band of Rs 165-175 for its initial public offering. The company will allow investors to subscribe to shares worth Rs 171 crore in the initial share sale. Paras Defense’s offer includes issue of shares worth Rs 140.6 crore and Offer for Sale (OFS) of 17,24,490 equity shares by promoters and existing shareholders.
2. Maximum and Minimum Lot Size
Investors can subscribe for minimum 85 shares at Rs 14.875 for 1 lot. And the maximum lot size is 1105 shares for 13 lots at Rs 1,93,375.
3. Paras Defense Promoters
Promoters including Sharad Virji Shah and Munjal Sharad Shah will sell their shares in the offer. The individual selling shareholders also include Munjal Shah, Shilpa Amit Mahajan and Amit Naveen Mahajan.
4. Total Capital Raising
Paras Defense with its IPO aims to raise around Rs 170.7 crore at the upper end of the price band.
5. How will Paras use the Defense Fund?
Paras Defense is planning to invest fresh funds to meet the capital expenditure requirements. The proceeds will also be used to support incremental working capital needs and repayment or prepayment of loans taken by the company.
6. RESERVATION FOR MEMBERSHIP
Paras Defense has reserved 50 per cent of the issue for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors of the total issue.
7. Paras Defense Company Profile
Paras Defense and Space Technologies is India’s most progressive Tier 2 Defense Engineering Company. They offer a wide range of defense products and solutions. They are the only manufacturer of Infrared Optics in large quantities in India. They are contributing to the prestigious defense and space programs of our country. They are involved in five verticals namely defense and space optics, defense electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies. Check out Paras Defense IPO details.
8. Paras Defense Financial Health
As far as the financial health of the company is concerned, the company is seeing a growth in revenue from 2019 to 2021. In 2019, the company’s revenue was Rs 330 crore which increased to Rs 362 crore in 2021. However, its profit after tax declined. From Rs 18.97 crore in 2019 to Rs 15.79 crore in 2021. The company has appointed Anand Rathi Advisors to manage the issue. Link Intime India has been appointed as the Registrar of the issue.
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