Paras Defence And Space Technologies IPO: Dates, Details and Overview4 min read
The Paras Defence and Space Technologies’ is coming up with its Rs.170.78 crores Initial Public Offering (IPO). The fresh issue aggregates up to Rs. 140.60 crores, while the OFS comes up to Rs. 30.18 crores with a total of 1,724,490 equity shares.
The price of per equity share will range between Rs. 165 to Rs. 175 and the face value of each share will Rs.10. The minimum order quantity is 85 Shares.
A retail-individual investor can apply for up to 13 lots (1105 shares or Rs.193,375).
The IPO opens on Tuesday, Sep 21, 2021, and closes on Thursday Sep 23, 2021.
Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE
Know the company:
The Navi-Mumbai based is an Indian private sector company engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions. It is one of the leading ‘Indigenously Designed Developed and Manufactured’(“IDDM”) category private sector companies in India, which caters to four major segments of Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution and heavy engineering.
The company is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India (Source F&S Report). It’s goal is to become one of the leading global companies for optics for the defence and space sector.
It has five principal categories of product offerings: defence and space optics, defence electronics, EMP protection, heavy engineering for defence and niche technologies.
The company derives most of its revenues under the contracts from the Government arms and associated entities such as defence public sector undertakings and government organizations involved in space research.
The company’s customer base includes Government arms and notable Indian public and private sector companies including Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Hindustan Shipyard Limited (HSL), Electronic Corporation of India Limited (ECIL), Tata Consultancy Services Limited (TCS), Solar Industries India Limited, Alpha Design Technologies Private Limited and Astra-Rafael Comsys Private Limited. Its foreign customers include Advanced Mechanical and Optical Systems (AMOS), Belgium, Tae Young Optics Company Limited (South Korea), and Green Optics (South Korea) etc.
Objective of the offer:
With the proceeds, the company intends to purchase machinery and equipment for the further utilisation. They also will be using the funding incremental working capital requirements of our Company. The company will also be using the amount for repayment or prepayment of all or a portion of certain borrowings/outstanding loan facilities availed by our Company. The funds will also be used for general corporate purposes. In addition, the company expects to achieve the benefit of listing Equity Shares on the Stock Exchanges, including to enhance its visibility and the brand image among the existing and potential customers and creation of a public market for the Equity Shares in India.
Important Financial data:
The company’s consolidated profit after tax was Rs.15.79 crore, Rs. 19.66 crore and Rs. 18.97 crores for the fiscal years ended March 31, 2021, March 31, 2020 and March 2019, respectively.
Strengths of the company:
- The company has a wide range of products and solutions for both defence and space applications;
- The company is one of the few players in high precision optics manufacturing for space and defence application in India;
- They have strong R&D capabilities with a focus on innovation.
- The company has positioned to benefit from the Government’s “Atmanirbhar Bharat” and “Make in India” initiatives;
- The possess strong relationships with a diverse customer base and has an experienced management team.
- There is a risk of loss, shutdown or slowdown of its business operations which will impact business.
- Adverse change in the GoI’s defence or space related policies or its budgets might affect the company
- The termination of agreements executed with third parties can impact business.
- The risks of delay in delivery or failures to meet contract specification.
- The failure to protect or enforce certain intellectual property rights.
Source – RHP, BRLM
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