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Paras Defence And Space Technologies Limited IPO : Key Details

The company initiated its business operation around the 1980s. The company has forty years+ of experience in its field of business. It specialised into the field of providing optics for the programs related to Indian Optics. The major products for the company involve Defence Electronics, Electromagnetic Pulse Protection Solutions, Defence and Space Optics and Niche Technologies.

Currently the company has 2 manufacturing plants in India. Both of them are located in Maharashtra.

IPO DETAILS

The company’s IPO is set to launch on 21st Sept., 2021. The subscription timeline extends till 23rd Sept., 2021. The size for the IPO is 170.78 Crore Rs.. Shares issued through Offer for sale are 30.18 Crore Rs. Shares worth Rs. 140.78 are issued through Fresh issue. The minimum lot size is 85 shares and the price is set at 165 Rs. – 175 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	21st Sept., 2021
CLOSING DATE FOR IPO	23rd Sept., 2021
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	165 Rs. – 175 Rs.
LOT SIZE	85 shares
MINIMUM ORDER QUANTITY	85 shares
ISSUE SIZE	170.78 Crore Rs.
OFFER FOR SALE	30.18 Crore Rs.
FRESH ISSUE	140.60 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	1st, Oct 2021

IMPORTANT DATES

IPO OPENING DATE	21st Sept., 2021
CLOSING DATE FOR IPO	23rd Sept., 2021
IPO ALLOTMENT DATE	28th Sept., 2021
REFUNDS	29th Sept., 2021
DEMAT A/C CREDITED ON	30th Sept., 2021
IPO LISTING DATE	1st Oct, 2021

The company’s IPO begins for subscription from 21st Sept., 2021. The IPO subscription would continue till 23rd Sept., 2021. The allotment status for the shareholders who applied would come on 28th Sept., 2021. The refunds for the ones who did not get allotment would be initiated on 29th Sept., 2021. The DEMAT accounts of shareholders would be credited on 30th Sept., 2021. The listing of the company would be accompanied on 1st Oct, 2021.

Promoters and Lead Managers

The promoters of the company are Munjal Shah and Sharad Shah.

The lead managers are :

Anand Rathi Securities Limited

The minimum lot size for the company is decided at 85 shares. This holding accounts to 14875 Rs.. The maximum lot size is decided at 1105 shares. This amounts to Rs. 193375. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	85 shares	14875 Rs
Maximum	1105 shares	193375 Rs

OBJECTIVES FOR THE IPO

The money from the IPO can also be utilized to meet general corporate purposes.
The company to pay off the major chunk of debtors from the balance sheet. Hence raising the IPO money will help them to do that.
Paras Defence and Space Technologies Limited wants to have money for funding the future capital and working capital requirements.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	3627	3423	3297
REVENUE	1446	1490	1571
NET PROFIT	157	196	189

Paras Defence And Space Technologies Limited has a stable asset base. The company’s assets are increasing at a stable amount of 200 Crore Rs every year. The revenues of the company have been decreasing every year which is not at all a good sign. It has a lot of competition put there in the market and hence needs to keep up with the figures. The profits of the company have also taken a hit of 30 crore Rs in the near future. Hence one needs to be very selective with the stock looking at the financial data.

PROS

Paras Defence And Space Technologies Limited has a diversified product portfolio.
Itr has tie ups with the major companies across the world like HPL, Genesys etc.
The company has a well experienced team with R&D facilities.

CONS

The company needs to scale up its business if it wants to grow ahead. In today’s world every nation is trying to achieve the unseen limits of Space and the company has an opportunity for the same. However with such a small cash and asset base it cannot sustain in the future.

Paras Defence And Space Technologies Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

Logging into Zerodha console through its website or KITE platform.
Clicking the IPO link present in the Portfolio section
Click the Paras Defence And Space Technologies Limited IPO button and press the BID button
Entering the details asked for like UPI ID, Quantity and price
Submit the application form of IPO
Visiting the application of UPI for approving the transaction

Now, applying for an IPO online is possible with most of the Discount and online brokers.

dhairya@socialcoffee.in