Paras Defense and Space Technologys is looking to open its initial public offering (IPO) of Rs 170.78 crore on Tuesday. The company is primarily engaged in the design, manufacturing and even testing of various products and solutions falling under the purview of Defense and Space Engineering. Paras Defense and Space Technologies essentially has five unique categories of product offering, these are Defense and Space Optics, Defense Electronics, heavy engineering, electromagnetic pulse protection solutions, as well as niche technologies. The company is one of the very few Indian companies with design capability for space-optics and optomechanical assemblies. It is one of the leading providers of optics for various Indian Defense and the space program.
Having said that here are the top 10 things you should know before Paras Defense IPO opens.
10 Key Details About Paras Defense IPO
1) Paras Defense IPO Issue Size, Overview
The issue size of Paras Defense’s IPO is Rs 170.78 crore and includes a fresh issue and offer for sale (OFS). The fresh issue is up to Rs 140.60 crore, while the OFS comes out to Rs 30.18 crore with a total of 1,724,490 equity shares.
2) Defense IPO Stop Dates
The public offering is set to open on September 21, 2021. The company plans to open the IPO for trading for a total of three days, after which, it will close on the third day, September 23. Any anchor booking that may be in place will close on Monday, September 20, a day before the issue opens.
3) Issue Price Band
The price band of Paras Defense IPO is Rs 165 to Rs 175 per equity share. Its face value is also Rs 10 per equity share.
4) Paras Defense IPO Gray Market Premium (GMP)
At the time of this article, the gray market premium of Paras Defense IPO on September 20, as per information received from IPO Watch, was Rs 220. This indicated that the shares were trading at Rs 385 to Rs 395 in the unlisted gray market.
5) Paras Defense IPO Allotment, Listing
With regard to the date of basis of allotment, the company is eyeing the date of September 28, 2021. Thereafter, the company plans to initiate refunds to unlucky investors who were not able to acquire shares during the trading day. Those who manage to hold a stock during the trading day will see the same recognized in their demat accounts as on 30th September. As far as the listing is concerned, the tentative date is October 1, 2021, however, it is yet to be confirmed.
6) IPO Objectives
There are several purposes of this issue. For one, the proceeds will fund the capital expenditure requirements as well as the incremental working capital requirements. A part of this will also go towards repayment and prepayment of all or certain loans/outstanding credit facilities availed by the Company. The rest of the fund will go towards general corporate purposes.
7) Issue lot size
The minimum lot size in Paras Defense IPO is 85 shares and the application amount is Rs 14,875. At the higher level, the lot size is 1105 shares with an application amount of Rs 193,375. Retail-Individual Investors (RIIs) can apply up to 13 lots at the higher level.
8) Investor Reservation for Paras Defense IPO
Qualified Institutional Buyers (QIBs) have 50 per cent reservation. Non-institutional investors (NIIs) have 15 per cent reservation. RII has a reserve share of 35 per cent for the IPO.
9) Company Promoter
Sharad Virji Shah and Munjal Sharad Shah are the promoters of the company for Paras Defense IPO.
10) Company Overview
It should be noted that despite being in a position that makes it one of the very few companies to fulfill a niche in the defense and space technologies market in India, the company operates in a sector that requires a high level of competence. Working capital is required to survive. However, speaking about the company’s vision and stand in the industry, Anglevan said, “Paras Defense started its journey in 2009, and after 12 years, it has successfully established itself to make a mark in India’s space and defense sector. The company has two state-of-the-art manufacturing facilities in Navi Mumbai and Thane. Paras Defense is one of the few companies that can deliver customized projects related to defense and space research.
“Paras Defense’s client list includes names such as ISRO, DRDO, Bharat Electronics, Hindustan Aeronautics Limited, Godrej & Boyce, Tata Consultancy Services, Kirloskar Group, Electronics Corporation of India Limited, Bharat Dynamics Limited and many more,” AngelOne said.
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