Paras Defence and Space Technologies Ltd IPO

Closed

IPO Subscription Details

  • Open Date 21 Sep
  • Close Date 24 Sep
  • Lot Size 85
  • IPO Size ₹ 170.77 Cr
  • IPO Price Range ₹ 165-175
  • Min Investment ₹ 14,025
  • Listing Exchange NSE, BSE
  • Basis of Allotment 28 Sep
  • Refunds 29 Sep
  • Credit to Demat Account 30 Sep
  • Listing Date 01 Oct

Paras Defence and Space Technologies Ltd IPO Subscription Status

Paras Defence and Space Technologies IPO Subscription Status

Category Subscription Status
Qualified Institutional (QIB) 169.65 Times
Non-Institutional (NII) 927.70 Times
Retail Individual 112.81 Times
Total 304.26 Times

 

Paras Defence and Space Technologies IPO Subscription Details (Day by Day)

 
Date QIB NII Retail Total
September 21, 2021 17:00 0.01x 3.77x 31.36x 16.57x
September 22, 2021 17:00 1.67x 26.32x 68.57x 40.57x
September 23, 2021 17:00 169.65x 927.70x 112.81x 304.26x

IPO Synopsis

Offer Details:-

The offer comprises of a fresh issue and an offer for sale. The fresh issue is of ₹140.6cr, of which ₹34.65cr would be used for purchasing machinery and equipment, ₹60cr would be used for funding working capital requirements of the company, ₹12cr would be used for repayment or prepayment of all or portion of certain borrowings availed by the company and the balance of the fresh issue would be used for general corporate purposes. The offer for sale is 1,724,490 shares amounting to ₹30.18cr, the proceeds of which would go directly to the selling shareholders.

About Paras Defence and Space Technologies Ltd

Paras Defence and Space Technologies Limited is an Indian private sector company 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’(“IDDM”) category private sector companies in India, which caters 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. (Source F&S Report) Paras Defence is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India (Source F&S Report). The company is also one of the leading providers of optics for various Indian defence and space programmes, and the only Indian company with the design capability for space-optics and opto-mechanical assemblies (Source: F&S Report).


Paras Defence has two manufacturing facilities in Maharashtra, located at Nerul in Navi Mumbai and Ambernath in Thane. The company derives most of the revenues under the contracts from the Government arms and associated entities such as defence public sector undertakings and government organizations involved in space research.


The customer base includes Government arms and notable Indian public and private sector companies including Bharat Electronics Limited (BEL), Hindustan Aeronautics 118 Limited (HAL), Bharat Dynamics Limited (BDL), Hindustan Shipyard Limited (HSL), Electronic Corporation of India Limited (ECIL), Tata Consultancy Services Limited (TCS), Solar Industries India Limited, Alpha Design Technologies Private Limited and Astra-Rafael Comsys Private Limited. The company’s  foreign customers include Advanced Mechanical and Optical Systems (AMOS), Belgium, Tae Young Optics Company Limited (South Korea), and Green Optics (South Korea) etc.


Further, the company partners with international players such as Holland Shielding Systems BV Netherlands, HPS, Gmbh and Invent, Gmbh to provide the company’s customers in India with products and technologies for defence and space applications. The company have been and is currently associated with some of the critical projects in India and abroad.

 

Products:

Paras Defence manufactures products under five verticals, defence and space optics, defence electronics, heavy engineering for defence; EMP protection solutions, and niche technologies.

I. Defence and Space Optics: manufactures high end optics for defence and space applications.

II. Defence Electronics: The company provides a wide array of computing and electronic systems for defence applications.

III. Heavy Engineering for Defence: Under the heavy engineering for defence operations category, the company provides mechanical manufacturing support to other verticals of our business. Further, under this vertical, Paras Defence provides heavy engineering products and solutions.

IV. EMP Protection Solutions: EMP protection solutions include designing, developing, manufacturing and commissioning various solutions for EMP protection for strategic applications.

V. Niche Technologies: As part of this vertical, Paras Defence aims to source technologies from their exclusive partners in various countries and manufacture products for clients in India and abroad.

Paras Defence and Space Technologies - Financial Status

Particulars (in crore)

FY19

FY20

FY21

Revenue from operations

154.39

147.04

143.33

EBITDA

42.83

39.27

43.39

EBITDA Margin (%)

27.74

26.71

30.28

PAT

18.97

19.65

15.78

RONW (%)

15.93

14.17

9.12

Source: RHP


Competitive Strengths:

Some of the competitive strengths are as follows

  • Diversified products and solutions offerings for both defence and space applications:

Paras Defence and Space Technologies is a leading IDDM category private sector company in India which caters to four major segments of Indian defence sector i.e., defence optics, defence electronics, EMP protection solution and heavy engineering offering one-stop solution to all their customers. The company is also the sole Indian supplier of diffraction gratings used in hyper-spectral imagers, large size optics (Source: F&S report). The company was involved in various space exploration missions, which has helped the company to develop a strong foothold in the Indian space industry by being the supplier of optics and optomechanical assemblies for these space exploration missions. Paras defence and Space Technologies provides end-to-end solutions to our customers ranging from designing, developing, manufacturing and testing increases their capability to meet specific and exclusive requirements of their customers. Apart from the above, the company’s horizontal integration makes them well positioned to undertake turnkey projects in the defence sector while also being capable of supporting major tier 1 Indian defence suppliers

  • One of the few players in high precision optics manufacturing for space and defence application:

Paras Defence and Space Technologies is one of the few manufacturers in India with a comprehensive in-house capability of designing, developing and manufacturing optics for space and defence application in India. The company’s manufacturing facility in Nerul, Navi Mumbai houses equipment and machinery, inter alia, for nano technology, machining, grinding, polishing and turning coupled with a robust testing set up for measuring the performance parameters of the optical components. The company’s in-house facilities include single point diamond turning machines, grinding and polishing machines for precision optics and large size space optics, optical thin film coatings with fully equipped metrology with contact and non-contact measurements. With strong experience in working with Government space organizations on critical space missions and being the sole Indian supplier of diffractive gratings used in hyperspectral imagers and infrared lenses, the company has established ourselves well in the Indian space market.

  • Strong relationships with a diverse customer base:

Paras Defence and Space Technologies has a diversified customer base which ranges from Government arms and government organizations involved in defence and space research, to various defence public sector undertakings such as Bharat Dynamics Limited, Bharat Electronics Limited and Hindustan Aeronautics Limited, to various private entities such as Tata Consultancy Services, Astra-Rafael Comsys Pvt. Ltd., Solar Industries India Limited, Alpha Design Technologies Private Limited, etc. The company also service international customers including Advanced Mechanical and Optical Systems (AMOS), Belgium, Chaban (Israel), Tae Young Optics Company Limited (South Korea), and Green Optics (South Korea). The company’s established heritage of experience in designing, developing and manufacturing components for diverse customers in defence and space sector, has enabled them to develop a deep understanding of the sectors and customers’ requirement.


Risk Factors:

Some of the risk factors are as follows

•    The business is largely dependent on contracts from the Government of India (“GoI”) and associated entities. A decline in Government budget for Defence and Space, reduction in orders, or termination of contracts can have a material impact on the business. 

•    Developing customised products and solutions and other research and development (“R&D”) activities involve risks and the company may not realize the degree of benefits initially anticipated or in a timely manner or at all. Further, such activities may not lead to satisfactory returns which would affect the business and financial condition of the company.

•    The company has sustained negative cash flows from operating and investing activities in the past and may experience earnings declines or operating losses or negative cash flows from investing activities in the future.

How to apply for IPO?

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  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

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  • Approve the mandate request on your UPI and funds will be blocked