Paras Defence and Space Technologies has received capital markets regulator SEBI’s approval to launch an IPO. The public challenge comprises fresh challenge of shares worth Rs 120 crore and an offer you-for-sale (OFS) of up to 17.24 lakh shares by promoters and current shareholders. The organization might also look at a pre-IPO placement of equity shares to the tune of Rs 35 crore, prior to the filing of the red herring prospectus. Paras Defence and Space Technologies stated that the quantity raised from the pre-placement will not be decreased from the fresh challenge. Anand Rathi Advisors is the book operating lead manager to the challenge. The equity shares of the organization would be listed on BSE and NSE. The registrar to the challenge is Link Intime India Private Ltd.
Paras Defence and Space Technologies does not have any listed business peers in India. The organization has planned to utilise the net proceeds towards funding capital expenditure specifications worth Rs 31.2 crore, and funding incremental working capital specifications to the tune of Rs 50 crore. The organization will also use the net proceeds for repayment or prepayment of particular borrowings/outstanding loan facilities of Rs 10 crore availed by the organization and for common corporate purposes.
The portion reserved for certified institutional purchasers (QIBs) will be up to 50 per cent of the offer you, non-institutional investors (NIIs) will have up to 15 per cent of the portion reserved even though up to 35 per cent will be reserved for the retail investors. Paras Defence’s buyer base ranges from PSUs to several defense public sector undertakings like Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL) and Hindustan Aeronautics Limited (HAL), and has supplied solutions and options to private entities which includes Tata Consultancy Services (TCS) and Alpha Design Technologies Ltd. Currently, the organization operates via two manufacturing facilities in Maharashtra, situated at Nerul (Navi Mumbai) and Ambernath (in Thane).
Paras Defence and Space Technologies’ consolidated total earnings stood at Rs 37.94 crore for the six-month period ended September 30, 2020, and Rs 149.05 crore, Rs 157.16 crore and Rs 152.53 crore for the fiscal years ended March 31, 2020, 2019 and 2018, respectively.