Paras Defence & Space Technology IPO
Paras Defence & Space Technology is an Indian private sector company engaged in developing, designing, manufacturing, and testing of a diverse range of defense and space engineering products & solutions. The company is one of the leading private sector company in the ‘Indigenously Designed Developed and Manufactured’ (“IDDM”) category in India. It caters to 4 major segments in the Indian defence sector i.e. defence electronics, defence & space optics, electro-magnetic pulse (“EMP”) solution and heavy engineering.
The defense and space optics operations of the company include manufacturing of high precision optics for space & defense applications such as space and thermal imaging systems. It is one of the leading providers of optics for various Indian defense and space programmees. As per F&S reports, it is the only Indian company having the design capabilities for space-optics and optomechanical assemblies. The defence electronics operations of the company include offerings of a wide array of electronic systems & high-performance computing for defence applications, including sub-systems for border defence, tanks, missiles, and naval applications.
The company has 2 manufacturing facilities in Maharashtra, one is located at Nerul in Navi Mumbai and the other one is in Ambernath in Thane. As of 31 December 2020, their current order book is ₹158.93 crores. The consolidated total income of the company was ₹37.94 crores for the 6-month period ended September 30, 2020, and ₹149.05 crores, ₹157.16 crores, and ₹152.53 crores for the fiscal years ended March 31st in 2020, 2019, and 2018, respectively.
The promoter of the company is Sharad Virji Shah and Munjal Sharad Shah.
Strengths of the Company
- The company has a wide portfolio of products catering to both defense & space applications
- Strong R&D capability with a focus on innovation
- The company is in a good position to avail the benefits of government initiatives like “Atmanirbhar Bharat” & “Make in India”
- Maintains strong relationships with a diversified customer base
- The company is one of the few players involved in high precision optics manufacturing for space & defence applications
- Experienced management team & promoters
Purpose of the IPO
The net proceeds from the IPO could be utilized for the following purposes:
- To fund the incremental working capital requirements of the company
- To purchase machinery & equipment
- Pre-payment or repayment of the borrowings of the company
- For general corporate purposes
Financial Performance of the company
| For the 6-month period ended 31st September 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 37.94 | 149.05 | 157.16 | 152.53 |
| Total Expenses | 38.20 | 127.25 | 130.35 | 122.12 |
| Profit After Tax | -0.13 | 19.65 | 18.97 | 25.08 |
| Total Assets | 492.71 | 365.70 | 317.23 | 240.36 |
*All the values are in crores and as per DRHP.
Valuation of the Company
| For the 6-month period ended 31st September 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Basic Earnings per Share (EPS) | -0.05 | 6.92 | 6.75 | 8.99 |
| Diluted Earnings per Share (EPS) | -0.05 | 6.92 | 6.74 | 8.99 |
| Return on Net Worth (%) | -0.11% | 15.03% | 17.16% | 30.58% |
| Net Assets Value per Equity share | 46.07 | 46.03 | 38.90 | 29.38 |
*As per DRHP.
Paras Defence & Space Technology IPO DRHP
IPO details:
| Face Value | ₹10 per equity share |
| Market Lot | Shares |
| Minimum Order Quantity | Shares |
| Price Band | ₹- ₹ per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | - |
| Fresh Issue | ₹120 Crores |
| Offer for Sale | - |
| Listing | NSE, BSE |
Important IPO dates:
| Open Date | June 2021 |
| Close Date | June 2021 |
| Basis of Allotment Date | June 2021 |
| Initiation of Refunds | June 2021 |
| The credit of shares to Demat Account | June 2021 |
| Listing Date | June 2021 |
Allocation Quota
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not less than 75% |
| Non- Institutional Buyers (NIIs) | Not more than 15% |
| Retail Investors | Not more than 10% |
Check your Paras Defence & Space Technology IPO allotment status here:
K Fintech IPO allotment Status: Click here
BSE IPO Allotment Status: Click here
NSE IPO Allotment Status: Click here