The IPO line-up continues on the D-Street as more companies queue up to get listed. Another company is set to hit the bourse soon. Paras Defence and Space Technologies (Paras Defence) is opening its public issue for subscription.
We bring you all the key details about the latest public issue.
- IPO size: ₹171 crore
- Fresh issue: ₹140.6 crore
- Offer for sale: ₹30.1 crore
- Price band: ₹165-₹175
- Lot size: 85 shares
- Cost per lot: ₹14,875
- Issue opens: 21 September 2021
- Issue closes: 23 September 2021
- Basis of allotment date: 28 September 2021
- Initiation of refunds: 29 September 2021
- Credit of shares to demat account: 30 September 2021
If you are planning to invest in Paras Defence IPO, then here is a quick round up of its business model and fundamentals:
About Paras Defence And Space Technologies
Incorporated in 2009, Paras Defence And Space Technologies designs, develops, manufactures and tests a wide range of defence and space engineering products and solutions. The company caters to five segments - defence and space optics, defence electronic, electro-magnetic pulse protection solution, heavy engineering and niche technologies. In fact, it is the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications.
The company has a range of 34 products and solutions, with which it caters to its customers. Its customer-base includes some of the prominent domestic private and government companies including Bharat Electronics, Bharat Dynamics, Hindustan Aeronautics and Solar Industries. It derives most of its revenue by signing contracts with government arms and entities. As of June 2021, it’s order book stood at ₹304 crore, which is over two times its FY21 revenues.
Meanwhile, it’s revenue and net profit have shrunk at 3.6% and 8.7% CAGR between FY19 and FY21.
About the issue
The IPO size is ₹171 crore. Of that, about ₹140 crore is the fresh issue which will be used for the purchase of machinery and equipment, incremental working capital requirement, repayment of a portion of the borrowing and general corporate purposes. The remaining ₹30 crore is the offer for sale.
To know more about the IPO, read its red herring prospectus here. The issue opens on 21 September 2021 and you can subscribe to Paras Defence with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!