Paras Defence and Space Technologies Limited IPO- Know All About It
Paras Defence and Space Technologies, incorporated in Mumbai in the year 2009 is coming up with IPO amounting to Rs Rs 170.77 crore. The company has undertaken the pre IPO placement of 2552598 equity shares for cash consideration amounting to Rs 34.40 crore.
Offer Details of Paras Defence and Space Technologies
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| Offer Details | |
| Offer Size | Rs 170.77Crore |
| of which | |
| Fresh Issue | Rs 140.6 crore |
| Offer for sale | upto 17,24,490 equity shares amounting to Rs 30.16 crore |
| Price Band | Rs 165-175 per share |
| Offer Period | Sep 21- Sep 23, 2021 |
| Offer Structure | QIBs: upto 50% of the offer NIIs: upto 15% of the offer RIIs : upto 35% of the offer |
| Market Lot | Minimum 1 lot; 85 shares (Rs 14,875) |
| Listing on | BSE, NSE |
| BRLM’s | Anand Rathi Advisors Limited |
| Registrar | LinkIntime |
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Sansera Engineering IPO Fundamental Analysis- Should you subscribe?
Objects of Offer of Paras Defence and Space Technologies IPO
The Net Proceeds from the Fresh Issue are proposed to be utilised as follows:
- Purchase of machinery and equipment (Rs 34.66 crore)
- Funding incremental working capital requirements of our Company (Rs 60 crore)
- Repayment or prepayment of all or a portion of certain borrowings/outstanding loan facilities availed by our Company (Rs 12 crore)
- General corporate purposes.
Business Review
Paras Defence 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. The current order book as of June 30, 2021, is Rs 304.99 crore. The company caters to four major segments of the Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution and heavy engineering. It is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India.
Product offerings:
Defence and space optics– operations include manufacturing high precision optics for defence and space applications such as thermal imaging and space imaging systems.
Defence electronics– includes providing a wide array of high-performance computing and electronic systems for defence applications, including subsystems for border defence, missiles, tanks and naval applications.
EMP protection– includes designing, developing, manufacturing and commissioning various solutions for EMP Protection.
Heavy engineering for defence– involves providing heavy engineering products and solutions, such as components for rockets and missiles along with providing mechanical manufacturing support to other verticals of our business.
Niche technologies– Under our niche technologies division, we have identified and partnered with some of the leading technology companies around the world in order to indigenous advanced technologies in the defence and space sectors for catering to the Indian market. This also affords us an opportunity to serve as a manufacturing partner for the global requirements of such overseas technology companies.
Mostly, the revenues are derived under the contracts from the Government arms and associated entities such as defence public sector undertakings and government organizations involved in space research.
The Issuer’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. The foreign customers include Advanced Mechanical and Optical Systems (AMOS), Belgium, Tae Young Optics Company Limited (South Korea), and Green Optics (South Korea) etc.
The company also partners with international players such as Holland Shielding Systems BV Netherlands, HPS, Gmbh and Invent, Gmbh to provide the customers in India with products and technologies for defence and space applications.
Manufacturing Facilities
The Issuer has two manufacturing facilities in Maharashtra, located at Nerul in Navi Mumbai and Ambernath in Thane. The Nerul facility is an advanced nanotechnology machining centre for producing high-quality optics and ultra-precision components and is engaged in the manufacturing of Optics, Design, Development, Manufacturing and Integration of Electronics and EMP protection products and solutions.
The Ambernath facility is engaged in manufacturing of heavy engineering products such as flow-formed motor tubes, vacuum brazed cold plates, titanium structures and assemblies, large and heavy dynamic structures with built-in automation for strategic applications, indigenously designed and manufactured flow-forming machines and mechanical racks, cabinets and consoles for various defence applications.
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Disclaimer: The above content is for general info purpose only and does not constitute professional advice. The author/ website will not be liable for any inaccurate / incomplete information and any reliance you place on the content is strictly at your risk.
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