Paras Defence and Space Technologies, India’s most progressive tier-2 defence engineering company has announced that the company’s initial public offering (IPO) will open for subscription on September 21. This window for subscription will remain open till September 23. The shares of the company would be listed on BSE and NSE. The company is planning to raise about Rs 170.7 crore at the upper end of the price band with its IPO. The allotment will happen on September 28, refunds on September 29, however, the tentative listing date of on the bourses is October 1, 2021. The issue consists of issuance of fresh equity shares worth Rs 140.6 crore with a face value of Rs 10 each and an offer for sale (OFS) of up to 17,24,490 equity shares by promoters of the company. At the higher end of the price band, the OFS by promoters aggregates to Rs 30.17 crore and the company is eyeing to raise Rs 170.77 crore from the IPO.
Here are the 10 important things that investors should know prior to subscribing to Paras Defence IPO:
1. Paras Defence IPO price band
Paras Defence and Space Technologies has fixed the price band at 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 Defence’s offering comprises fresh issuance of shares worth Rs 140.6 crore and an offer of sale (OFS) of up to 17,24,490 equity stocks by promoters and existing shareholders.
2. Maximum And Minimum Lot Size
Investors can subscribe for the minimum 85 shares for 1 lot at Rs 14.875. And the maximum lot size is 1105 shares for 13 lots at Rs 1, 93,375.
3. Paras Defence Promoters’
Promoters including Sharad Virji Shah and Munjal Sharad Shah will sell their shares in the offer. Individual selling shareholders also include Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan.
4. Total capital raise
Paras Defence is aiming to rake in about Rs 170.7 crore at the upper end of the price band with its IPO.
5. How will Paras Defence utilise funds?
Paras Defence is planning to invest fresh funds to meet capital expenditure requirements. The proceeds will also be used to support incremental working capital needs and repayment or prepayment of loans availed by the company.
6. Reservation For Subscription
Paras Defence has reserved 50% of the issue for qualified institutional buyers (QIBs), 35 per cent is reserved for retail investors and 15 per cent is reserved for non institutional investors of the total issue.
7. Paras Defence Company Profile
Paras Defence and Space Technologies is India’s most progressive Tier 2 defence engineering company. They offer a wide range of defence products and solutions. They are the only manufacturer of Infrared Optics in large quantities in India. They are contributing to the prestigious Defence & Space Programs of our country. They are involved in five verticals namely Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions and Niche Technologies. Check out Paras Defence IPO details.
8. Paras Defence Financial Health
As far as the company’s financial health is concerned, the company is witnessing a growth in revenue from 2019 to 2021. In 2019, the company’s revenue was at Rs 330 crore which rose 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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