Paras Defence and Space Technologies Ltd – Globe Capital
Paras Defence and Space Technologies Ltd
Closed
Price Band
Rs. 165 – 175
IPO Issue Period
Sep 21, 2021 to Sep 23, 2021
Issue Size
Rs. 170.78 Cr.
Face value
Rs. 10/-
Fresh issue
Rs. 140.60 Cr.
Offer for sale
Rs. 30.18 Cr.
Minimum Shares for Retail
85 shares
Maximum Shares for Retail
1105 shares
Listing on
NSE, BSE
Issue Type
Book Building
Tentative Listing Date
1-Oct-21
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer
Registrar to the Issue
Link Intime India Private Ltd

Anand Rathi Securities Limited

Paras Defence and Space Technologies are primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. The company has five major product category offerings – Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies. Paras Defence and Space Technologies is the only Indian company with the design capability for space-optics and opto-mechanical assemblies and is one of the leading providers of optics for various Indian defence and space programs. The company also delivers customized turnkey projects in the defence segment. The company has partnered with some of the leading technology companies around the world to indigenize advanced technologies in the defence and space sectors for the Indian market. The company has 2 manufacturing plants in Maharashtra and is in the process of expanding its current manufacturing facility at Nerul in Navi Mumbai.

For year/ period ended ( in Cr.)

31 Mar 2021 31 Mar 2020 31 Mar 2019
Total Revenue 143.33 147.04 154.4
Profit After Tax 15.79 19.66 18.97
EPS 5.55 6.92 6.75
OPM(%) 30.28% 26.71% 27.74%
PATM(%) 11.02% 13.37% 12.29%
  • It has wide range of products and solutions offerings for defence and space applications.
  • One of the few manufacturers of optics for space and defence application in India.
  • The Company offerings are aligned with the “Atmanirbhar Bharat” and “Make in India” initiatives by the government.
  • It has strong R&D capabilities with a focus on innovation.
  • Strong customer relationship with government arms and government organizations.
  • Strong experienced management.
  • Fund capital expenditure requirements.
  • Funding incremental working capital requirements.
  • Repayment or prepayment of all or a portion of certain borrowings/outstanding loan facilities availed by the company.
  • General Corporate purposes.

Increasing spending on the defence and aerospace segment by the government has been on the rise and this augurs well for this company. However, based on its financial data the issue is fully priced discounting near term prospects. Hence cash surplus investors may consider investing in this issue for the long term.

Timeline
Application Start
21-09-2021
Application End
23-09-2021
Allotment Begins
28-09-2021
Refund Initiation
29-09-2021
Allotment Date
30-09-2021
Listing on exchange
01-10-2021
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