The initial public offer (IPO) of Paras Defence and Space Technologies received bids for 28.96 crore shares as against 71.40 lakh shares on offer on Wednesday (22 September 2021), according to stock exchange data at 17:00 IST. The issue was subscribed 40.57 times.
The issue opened for bidding on Tuesday (21 September 2021) and it will close on Thursday (23 September 2021). The price band of the IPO is fixed at Rs 165-175 per share. An investor can bid for a minimum of 85 equity shares and in multiples thereof.
The offer comprises of a fresh issuance of equity shares aggregating up to Rs 140.60 crore and offer for sale (OFS) of up to 17,24,490 equity shares. The offer for sale comprises sales of 12,50,000 equity shares by Sharad Virji Shah and 50,000 equity shares by Munjal Sharad Shah - the promoter selling shareholders.
The balance portion of offer for sale comprise sale of 3,00,000, 62,245 and 62,245 equity shares respectively by Ami Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan, the individual selling shareholders.
Post issue the holding of promoter selling shareholders on expanded equity will come down to 18.65% and 25.28% for Sharad Virji Shah and Munjal Sharad Shah respectively.
The company intends to utilize the net proceeds from the fresh issue towards purchase of machinery and equipment amounting Rs 34.657 crore, funding incremental working capital requirements amounting Rs 60 crore, repayment or prepayment of all or certain borrowings amounting Rs 12 crore and for general corporate purposes. As of July 31, 2021, its aggregate outstanding indebtedness was Rs 115.827 crore.
Ahead of the IPO, Paras Defence and Space Technologies on 20 September 2021 finalized allocation of 29,27,485 equity shares to anchor investors at an allocation price of Rs 175 per share, aggregating to Rs 51,23,09,875.
Paras Defence and Space Technologies is primarily engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions. It is one of the leading 'Indigenously Designed Developed and Manufactured Company' (IDDM) category private sector companies in India with its product offerings catering to four major segments of Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (EMP) protection solution and heavy engineering for defence and niche technologies. It is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India.
The company reported a consolidated net profit of Rs 15.73 crore and sales of Rs 143.33 crore in the twelve months ended 31 March 2021.
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