Paras Defence IPO

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  • September 18, 2021
Paras Defence IPO

Paras Defence and Space Technologies IPO Details

Issue Period 21st September 2021 to 23rd September 2021
Type of Issue Book building issue
Price Range Rs.165 to Rs.175 per share
Bid Lot 85 shares and then in multiples of 85 shares
Minimum Order Quantity 85 shares
Face Value of the Shares Rs.10 per share
Maximum Investment for a Retail Investor Rs.193,375

What is an IPO?

IPO is short for Initial Public Offering. It refers to the first time a company offers its equity shares to the common public for investing. A company that wishes to list itself on the stock exchange issues an IPO, wherein the shares offered are subscribed by retail and institutional investors.

After the IPO is subscribed, shares are allotted and then listed on the stock exchange from where investors can trade in them. An IPO is a way for companies to raise funds and their promoters to dilute their stakeholding.

Paras Defence IPO Company Details – About Paras Defence and Space Technologies

As is evident from the company’s name, Paras Defence and Space Technologies designs, manufactures, develops and tests different space and defence-related technologies. It is the only domestic company that can design space optics and has optomechanical assemblies. Paras Defence is a primary optic provider for different space and defence programs. It also provides customized turnkey solutions to the defence sector.

Promoted by Sharad Virji Shah and Munjal Sharad Shah, Paras Defence and Space Technologies has two manufacturing units in Maharashtra – Thane and Navi Mumbai. Currently, the company is planning to expand its unit located at Nerul.

The main product categories of the company are divided into five heads which are as follows:

  • Defence Electronics
  • Defence & Space Optics
  • Electromagnetic Pulse Protection Solutions
  • Heavy Engineering
  • Niche Technologies

The financials of the company over the last three years can be assessed from the following table:

Financial Year 2018-19 Financial Year 2019-20 Financial Year 2020-21
Value of total assets (in Rs. crores) 3297.48 3423.86 3627.58
Total reported revenue (in Rs. crores) 1571.69 1490.51 1446.07
Profit After Tax (in Rs. crores) 189.70 196.57 157.86

Moreover, the company also raised Rs.34.402 crores by issuing 25,52,598 shares in a pre-IPO placement. The company intends to use the additional funds raised through the IPO to fund the following activities:

  • Buying machinery and equipment
  • Debt repayment
  • Increasing working capital needs
  • General business needs

Besides Indian clientele, Paras Defence also caters to clients located in South Korea, Israel, and Belgium.

Paras Defence IPO Launch Date & Price

Retail investors can subscribe to the Paras Defence IPO from 21st September 2021. The last Paras Defence IPO date for bidding is 23rd September. After the IPO closes, the allotment date would be 28th September, and successful investors can get the shares in their Demat accounts on 30th September 2021. Subscribers who did not receive allotment would be refunded their money on 29th September 2021, and the shares are expected to be listed on BSE and NSE on 1st October 2021.

The Paras Defence IPO size is worth Rs.170.78 crores. The company is offering Rs.140.60 crores worth of fresh issue of shares. 17,24,490 equity shares would be offered through an Offer for Sale by the promoters and existing shareholders. 50% of the IPO is reserved for QIBs (Qualified Institutional Buyers), 15% for non-institutional investors and the remaining 35% for retail investors.

The price band is between Rs.165 and Rs.175 per share subscribed, and investors would have to subscribe to a minimum of 85 shares that constitute one lot.

How to Apply for Paras Defence IPO with TradeSmart?

For a hassle-free and convenient experience, you can choose TradeSmart and apply for the Paras Defence IPO. The process is simple:

  • Go to the TradeSmart website and create your online account.
  • To apply to the IPO, go to TradeSmart’s Box portal and log into your TradeSmart account.
  • Under the ‘Portfolio’ tab, choose ‘IPO’. The details of the current IPOs will be listed.
  • Select the Paras Defence IPO and hit ‘Bid’.
  • Enter in your UPI ID and the quantity you want to purchase, along with the price you are willing to pay for the same.
  • A mandate request would be generated for your UPI ID.
  • Accept the request and make the payment to complete the bid.
  • On successful bid completion, you would receive an SMS notification on your registered mobile number. Your bid details would also be displayed under the ‘My Applications’ option on the home page.

Paras Defence IPO is the latest to hit the market, making it the 42nd company to issue its IPO in 2021. Know the Paras Defence IPO details and, if you want to invest, choose TradeSmart so that you can apply instantly and that too at the lowest brokerage.

FAQs

What is the Paras Defence IPO date & price?

Retail investors can bid between 21st September and 23rd September 2021. The bid duration is, therefore, three days. As far as price is concerned, the minimum Paras Defence IPO share price is Rs.165, and the upper limit is Rs.175.

Who is the book-running manager of the IPO?

The book-running manager of the IPO is Anand Rathi Advisors.

What are the minimum and maximum investment limits for the IPO?

The minimum investment for retail investors is Rs.14,875, and the maximum investment is limited to Rs.193,375.

What is the expected allotment date?

After the IPO closes, the shares will be allotted on 28th September 2021.

Where would the shares be listed subsequent to the IPO?

The shares would be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

What is the lot size?

Retail investors would have to invest in a minimum of 85 shares which comprises one lot. So, the lot size is 85 shares, and investors can bid for a maximum of 13 lots.

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