Paras Defence and Space Technologies has been approved by capital markets regulator SEBI to launch the IPO. Paras defence design develops and manufactures defence and space engineering products and solutions for government, defence PSUs, and space research organizations.
The public issue includes a new issue of Shares, Promoters, and Existing Shareholders worth Rs 120 crore and Offers for Sale (OFS) up to 17.24 lakh shares. The company may also consider the pre-IPO placement of equity shares worth Rs 35 crore before filing a red herring prospectus. Paras Defence and Space Technologies said the amount raised from pre-placement will not be deducted from the new problem. Anand Rati Advisors is a book that works as the lead manager of the issue. Link Intime India Private Limited is the Registrar of this issue.
Paras Defence and Space Technologies do not have industry peers listed in India. The company has planned to finance capital expenditure requirements worth Rs 31.2 crore and provide Rs 50 crore in funding for rising working capital needs. The company will use the net profit to repay or pre-pay off some debts/outstanding loan facilities worth Rs 10 crore availed by the company.
The portion reserved for qualified institutional buyers (QIBs) will be up to 50 percent of the offer, while the reserved share of up to 15 percent for non-institutional investors (NIIs) will also be reserved for retail investors up to 35 percent. The customer base of Paras Defence has been distributed products and solutions to private firms including Public Sector Undertakings to various Defence PSUs like Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and Hindustan Aeronautics Limited (HAL), including Tata Consultancy Services (TCS) and Alpha Design Technologies Ltd. At present, the company operates through two manufacturing facilities in Maharashtra. Located in Nerul (Navi Mumbai) and Ambernath (Thane).
The consolidated total revenue of Paras Defence and Space Technologies for the six months ended September 30, 2020, is Rs 37.94 crore, Rs 149.05 crore, Rs 157.16 crore, and Rs 152.53 crore respectively for the financial years ended March 31, 2020, 2019, and March 31, 2018.