Paras Defence and Space Technologies has received capital markets regulator SEBI's approval to launch an IPO.
Paras Defence and Space Technologies has received capital markets regulator SEBI’s approval to launch an IPO. The public issue comprises fresh issue of shares worth Rs 120 crore and an offer-for-sale (OFS) of up to 17.24 lakh shares by promoters and existing shareholders. The company may also consider 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 said that the amount raised from the pre-placement will not be reduced from the fresh issue. Anand Rathi Advisors is the book running lead manager to the issue. The equity shares of the company would be listed on BSE and NSE. The registrar to the issue is Link Intime India Private Ltd.
Paras Defence and Space Technologies does not have any listed industry peers in India. The company has planned to utilise the net proceeds towards funding capital expenditure requirements worth Rs 31.2 crore, and funding incremental working capital requirements to the tune of Rs 50 crore. The company will also use the net proceeds for repayment or prepayment of certain borrowings/outstanding loan facilities of Rs 10 crore availed by the company and for general corporate purposes.
The portion reserved for qualified institutional buyers (QIBs) will be up to 50 per cent of the offer, non-institutional investors (NIIs) will have up to 15 per cent of the portion reserved while up to 35 per cent will be reserved for the retail investors. Paras Defence’s customer base ranges from PSUs to various defense public sector undertakings like Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL) and Hindustan Aeronautics Limited (HAL), and has supplied products and solutions to private entities including Tata Consultancy Services (TCS) and Alpha Design Technologies Ltd. Currently, the company operates through two manufacturing facilities in Maharashtra, located at Nerul (Navi Mumbai) and Ambernath (in Thane).
Paras Defence and Space Technologies’ consolidated total income 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.