Paras Defence and Space Technologies IPO

Paras Defence and Space Technologies Started on June 16, 2009. They offers a wide range of products and solutions for defense and space applications. Paras Defence and Space Technologies IPO will hit the market on 21 September 2021.

About

Paras Defence and Space Technologies limited is a private Indian company that designs, develops, manufactures, and tests a complete range of defence and space engineering products and systems.

They are a prominent ‘Indigenously Designed, Developed, and Manufactured’ private sector business in India, serving four key areas of the Indian defence sector: military & space optics, defence electronics, electro-magnetic pulse protection solutions, and heavy engineering.

They are also the only Indian provider of essential imaging components for space applications, such as large scale lenses and diffractive gratings.

Their ambition is to become one of the world’s top companies in the field of optics for the defence and space sectors.

Manufacturing

The company has a state-of-the-art manufacturing setup with a workforce of over 400 and has the ability to offer turnkey solutions ranging from design to commissioning of small to large systems.

Their focus on technology development and R&D distinguishes us as a true IDDM company in the Indian defense industry. They have a vibrant team to develop future technologies and provide state-of-the-art solutions for their customers.

Business Strategy

Quality products, delivered on time and at the most competitive price is our business strategy. This has made us one of the most trusted partners of our customers.

Strong fundamentals, impressive business ethics and customer centric approach are the pillars of our business as we aim to be the most important Indian company in the defense and space sector.

Products & Clients

They provide a diverse variety of products and services for both defence and space applications. They have a variety of 33 different product and solution segments as of December 31, 2020, with many variants in each segment.

They think that their capacity to offer a diverse variety of goods and solutions is bolstered by high-quality products and operational performance focused on continuous improvement.

Main clients for the firm are ISRO, Defence R&D Organisation, Bharat Electronics, Hindustan Aeronautics Limited, Bharat Dynamics Ltd, Israel Aerospace Industries, Rafael Advanced Defense Systems, L & T, Godrej & Boyce, Tata Consultancy Services and Tata Power.

Paras Defence and Space Technologies IPO 

Paras Defence and Space Technologies, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 700 crore on 06 March, 2021.

The Offer includes a fresh equity of Rs. 120 crore and an offer for sale(OFS) up to 17,24,490 equity shares of face value of 10 per share, by the promoters. The firm is considering pre-IPO placement of equity shares worth Rs 35 crore.

They got approval from Securities and Exchange Board of India(SEBI) on 15 June, 2021 to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-20	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	352.55	342.39	329.75	256.80
Total Revenue	37.94	149.05	157.17	152.53
Profit After Tax	.09	20.26	18.53	25.06

Basic and Diluted Earnings Per Share (EPS)

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	6.92	6.92	3
Financial Year 2019	6.75	6.74	2
Financial Year 2018	8.99	8.99	1
Weighted Average	7.21	7.21
(6 months) Sep. 30, 2020	(0.05)	(0.05)	–

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the Offer

• For both defence and space purposes, a wide variety of components and systems are available.
• Among the India’s few manufacturers of high-precision optics for space and defence applications.
• Strong research and development skills with a focus on creativity
• The company is well-positioned to profit from the government’s “Atmanirbhar Bharat” and “Make in India” programmes.
• Excellent customer connections with a wide range of clients.
• Management team with decades work expertise.

IPO Details

IPO Opening Date	21 September 2021
IPO Closing Date	23 September 2021
Issue Type	Book Built
Face Value	10 per  share
IPO Price	165 to 175 per equity share
Market Lot	85
Min Order Quantity	85
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	120 cr.
Offer for Sale	17,24,490 equity share

IPO Tentative Date

Paras Defence and Space Technologies IPO opening date is 21 September 2021, and the closing date is 23 September 2021. The issue may list on 01 October 2021.

IPO Open Date	21 September 2021
IPO Close Date	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
IPO Listing Date	01 October 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimal level of 1 lot, based on availability, for every shareholder.

Paras Defence IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Paras Defence and Space Technologies IPO.

Paras Defence IPO GMP

Paras Defence IPO Grey Market Premium is 220. You can check out other IPO GMP on below Links.

Date	GMP (in Rs)	Subject to Sauda	Kostak
01 October 2021	220	3400	350
30 September 2021	210	4300	450
29 September 2021	243	4900	500
28 September 2021	248	5600	550
27 September 2021	255	4800	500
26 September 2021	252	3600	350
25 September 2021	260	4300	450
24 September 2021	245	4500	500
23 September 2021	230	2600	300
22 September 2021	225	3800	400
21 September 2021	212	4500	450
20 September 2021	215	3700	400
19 September 2021	192	3200	300
18 September 2021	195	2600	250
17 September 2021	135	2200	200
16 September 2021	108	1500	150

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Paras Defence IPO Review

If you want to know Paras Defence and Space Technologies IPO is good or bad here is the answer for you. You can apply for decent listing gains as well as for long term without any issues. Company is having a good balance sheet and there are good opportunities for growth in this sector.

Paras Defence and Space Technologies IPO Risk

• Their company, performance of operations, and financial performance may suffer materially as a result of the loss, closure, or slowdown of their business activities.
• A large percentage of their business is based on a small number of clients. The loss of any of their key clients as a result of a negative development or a major drop in business from their major client might have a negative impact on our company and financial situation.
• Their company is also reliant on contracts from the Government of India and related institutions, such as military public sector undertakings and state space research agencies. A decrease in orders, a decrease in the Indian defence or space budget, or a reprioritization of the Indian defence or space budget

Other Threats

• They may not be able to qualify for or win bids to grow our company, which might have a negative impact on our operations and finances.
• The impact of the COVID-19 pandemic on their company and operations will be very unpredictable and impossible to anticipate.
• They are subject to government restrictions, and if we do not receive, hold, or renew the necessary statutory and regulatory licences, permits, and certifications for their company, their results of businesses and cash flows might suffer.
• They require a large amount of working cash. Insufficient cash flows from their operations to fulfill their working capital requirements might have a substantial and negative impact on their business.

Business sections

Their product offerings are divided into five categories: military and space optics, defence electronics, EMP protection, heavy engineering for defence, and specialised technologies.

Manufacturing high precision optics for defence and space applications including thermal imaging and space imaging systems is part of their defence and space optics activities.

They are a key provider of optics for several Indian defence and space programmes, as well as the only Indian company with design capacity for space optics and opto-mechanical systems.

Their electronics activities involve the development of a wide range of high-performance computer and electronic systems for defence applications, such as border defence subsystems, missiles, and tanks.

Sales and Marketing

Their marketing plan is framed as a customer-focused technique, in which their business decisions are based on the requirements of the client, and they enjoy the benefits of routine interactions with clients by using their feedback and guidance to evaluate the product’s lifecycle and anticipate future applications for our present technology.

Their customer-focused strategy and track record of outstanding projects have earned them the reputation of being a trustworthy partner for their future programmes.

As part of their promotional operations, they frequently attend defence and space exhibits and conferences, as well as hold seminars to display their goods and services.

Paras Defence and Space Technologies IPO Brokerage View 

• Yes Securities : Not Updated 
• Choice Brokering: Not Updated 
• Axis Securities: Not Updated 
• IIFL Securities: Not Updated 
• Trade swift: Not Updated 
• Anand Rathi : Not Updated 
• ICICI Securities: Not Updated 

Paras Defence and Space Technologies IPO Subscription

Date	Day	QIB	NII	Retail	Employees	Total Subscription
21 September 2021	1	0.01	3.96	32.93	N/A	17.32
22 September 2021	2	1.72	27.64	71.99	N/A	42.41
23 September 2021	3	175.40	973.96	118.44	N/A	318.04

Paras Defence and Space Technologies IPO Peer Comparison

There are no publicly traded firms in India with a range of products and services equivalent to theirs, or a scale of operations comparable to theirs.

Employees

They have 331 full-time professionals and 165 contract labourers throughout India as of December 31, 2020. They regularly recruit contract workers, mostly for production and sales, in addition to their full-time staff.

Employee retention and excellent employee relations are aided by their management practises, working environment, career growth possibilities, and employee perks.

They use a variety of efforts to discover, develop, and retain their employees, including talent acquisition, learning & development, salary & benefits, employee engagement, and performance management.

Their firm oversees their payroll system and guarantees that they comply with all applicable labour regulations.

Promoters

• Sharad Virji Shah
• Munjal Sharad Shah

Promoter Holding

Pre Issue Share Holding	64.29%
Post Issue Share Holding