paras defence and Space Technologies Limited ipo

 

Paras Defence is one of the leading names in India’s private space and defence sector. The company with over four decades of experience is now operating in 5 verticals –

Defence Electronics

Defence and Space Optics

Electromagnetic Pulse Protection Solutions

Heavy Engineering

Niche Technologies

The company has also performed steadily in developing technologies associated with space research, naval systems, electronic surveillance, electromagnetic shielding, to name a few. Paras Defence and Space Technologies Limited has two modern manufacturing facilities in Navi Mumbai and Thane, with a workforce of 400. It enables the company to offer readymade solutions to design and commission different types of systems.

Paras Defence and Space Technologies IPO Objectives :

- Buying new equipment and machinery

- Meeting working capital requirements

- Funding general corporate purposes

- Repaying existing debts

Paras Defence and Space Technologies IPO Details

IPO Opening Date	Sep 21, 2021
IPO Closing Date	Sep 23, 2021
Issue Type	Book Built Issue IPO
Face Value	₹10 per equity share
IPO Price	₹165 to ₹175 per equity share
Market Lot	85 Shares
Min Order Quantity	85 Shares
Listing At	BSE, NSE
Issue Size	[.] Eq Shares of ₹10 (aggregating up to ₹170.78 Cr)
Fresh Issue	[.] Eq Shares of ₹10 (aggregating up to ₹140.60 Cr)
Offer for Sale	1,724,490 Eq Shares of ₹10 (aggregating up to ₹30.18 Cr)

 

IPO Open Date	Sep 21, 2021
IPO Close Date	Sep 23, 2021
Basis of Allotment Date	Sep 28, 2021
Initiation of Refunds	Sep 29, 2021
Credit of Shares to Demat Account	Sep 30, 2021
IPO Listing Date	Oct 1, 2021

Application	Lots	Shares	Amount (Cut-off)
Minimum	1	85	₹14,875
Maximum	13	1105	₹193,375

Why Should You Invest in Paras Defence and Space Technologies IPO?

Paras Defence has been in the business as a speciality defence and space research components manufacturers for more than a decade. In this timeframe, the company has expanded its portfolio and now serves a long list of clients, including some big names such as ISRO, DRDO, Bharat Electronics, and many more. Here are some reasons why individuals should consider putting their money down for Paras Defence IPO:

1. A look at the company’s book will reveal that it has been profitable in the past three fiscal years. Last year, its margins dropped, but not by much.
2. Since the business is not confined to one product or segment, it diversifies the organisation's revenue streams. Hence, it can cater to a wider customer base.
3. Paras Defence has also steadily strengthened its overall assets over the years.
4. The clientele includes some of the industry leaders, and some of them are Government organisations.
5. Paras Defence also houses a strong research and development division backed by modern infrastructure, which helps the company to keep innovating.

Paras Defence and Space Technologies IPO – Noteworthy Highlights

Paras Defence began its journey back in 2009, and after 12 years, it has successfully positioned itself as a name to recognise in India's space and defence sector. Here are some highlights of Paras Defence that you should know before investing –

1. The company has two state-of-the-art manufacturing facilities in Navi Mumbai and Thane.

2. Paras Defence is one of the few companies that can deliver customised projects associated with defence and space research.

3. The client list of Paras Defence includes names like ISRO, DRDO, Bharat Electronics, Hindustan Aeronautics Limited, Godrej & Boyce, Tata Consultancy Services, Kirloskar Group, Electronics Corporation of India Limited, Bharat Dynamics Limited, and many more.

Paras Defence and Space Technologies IPO - SWOT Analysis

Strengths

• Diverse product portfolio and healthy client profiles: Paras Defence has a product portfolio spanning different segments, keeping the revenue ticking. Also, it has a client list that includes segment leaders and mainly exports to organisations in the USA, Israel, and Singapore.
• Experience of the management and technical expertise: Paras Defence has the backing of an experienced management team and possesses the necessary technical know-how to curate the latest products.

Weaknesses

• Requirement of high working capital: Paras Defence operates in a segment that requires high working capital to survive and grow.

Opportunities

• Part of a growing segment: India's space research and defence sector is picking up pace, which will serve Paras Defence well.

Threats

• Lack of trained workforce: Space and defence research equipment manufacturing requires a highly skilled workforce, which is not always readily available in India.

Recomendation: subscribe for listing gain and short term.