Paras Defence and Space Technologies' initial public offer (IPO) will open for subscription on Tuesday. Mumbai-based Paras Defence and Space Tech aims to raise up to Rs 171 crore through the initial share sale. The IPO comprises fresh issuance of equity shares worth up to Rs 141 crore and an offer for sale - estimated at Rs 30.2 crore - by promoters.
The company offers a wide range of products and solutions for defence as well as space applications.
Here are key things to know about the Paras Defence IPO -
: The Paras Defence issue will open for subscription on September 21, and close on Thursday, September 23. Shares are likely to be listed on stock exchanges BSE and NSE on October 1.
Price band: The company has set a price band of Rs 165-175 for the issue.
Issue size: The Paras Defence IPO comprises fresh issuance of shares worth up to Rs 141 crore and an offer for sale (OFS) of 17.2 lakh equity shares - estimated at Rs 30.2 crore - by promoters.
Lot size: Shares will be available for bidding in multiples of 85 units. At the upper end of the price band, bidding for one lot of Paras shares will cost Rs 14,875.
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Market cap: The company will likely have a post-issue implied market cap of Rs 652-683 crore.
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Objective: Proceeds from the share sale will be utilised towards the purchase of machinery and equipment, funding working capital requirements, repayment/prepayment of certain borrowings, and for general corporate purposes.
Investor quotas: While 50 percent of the issue is reserved for qualified institutional buyers (QIBs), 15 percent is blocked for non-institutional buyers. A quota of 35 percent is reserved for retail investors.
Promoters: Promoters Sharad Virji Shah, Chairman and Non-Executive Director, and Munjal Sharad Shah, Managing Director, hold around 1.8 crore equity shares in the company, representing 59.5 percent of the issued, subscribed and paid-up equity share capital.
Financials: Revenue from operations as of March 31 stood at Rs 143.3 crore as against Rs 147.04 crore a year ago. Profit before tax was at Rs 22.6 crore, as against Rs 21.8 crore a year ago. EBITDA was at Rs 43.4 crore as against Rs 39.3 crore in the year-ago period, according to the company's red herring prospectus.
With a focus on the defence and space sector, Paras Defence has five verticals: defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies. Paras is involved in technologies such as rocket and missiles, space and space research, naval systems, land and armoured vehicles, electronic warfare and surveillance and electromagnetic shielding.
The company has two manufacturing facilities in Maharashtra, located in
Navi Mumbai and Thane.
First Published: IST