GMP, price, strengths of the company, 10 points


Paras Defense and Space Technologies is looking to open its initial public offering (IPO) of Rs 170.78 crore on Tuesday. This company is mainly engaged in the design, manufacture and even testing of a variety of products and solutions within the field of defense and space engineering. Paras Defense and Space Technologies essentially offers five unique categories of product offerings, namely defense and space optics, defense electronics, heavy engineering, electromagnetic pulse protection solutions, as well as than niche technologies. This company is one of the very few Indian companies to have a design capability for optical and optomechanical assemblies. It is also a major supplier of optics for various Indian defense and space programs.

With that said, here are the top 10 things you need to know about the Paras Defense IPO before it opens.

10 key details about the Paras Defense IPO

1) Paras Defense IPO issue size, overview

Paras Defense’s IPO has an issue size of Rs 170.78 crore and it also consists of a new issue and an offer to sell (OFS). The new issue totals up to Rs 140.60 crore, while the OFS reaches Rs 30.18 crore with a total of 1,724,490 shares.

2) Paras Defense IPO dates

The public offering is scheduled to open on September 21, 2021. The company plans to open the IPO for a total of three days, after which it will close on the third day, September 23. take place, would end the day before the show opens, that is, Monday, September 20.

3) Issuance of the price range

Paras Defense’s IPO has a price range of Rs 165 to Rs 175 per share. It also has a face value of Rs 10 per share.

4) Paras Defense IPO Gray Market Premium (GMP)

The gray market premium for Paras Defense’s IPO on September 20, at the time of this article, stood at Rs 220 according to information from IPO Watch. This indicated that the shares were trading between Rs 385 and Rs 395 on the unlisted gray market.

5) Paras Defense IPO allocation, listing

In terms of the base grant date, the company is considering September 28, 2021. Following this, the company plans to initiate redemptions to hapless investors who were unable to earn shares during trading days. . Those who manage to land a share during trading days will see the same accredited on their Demat accounts on September 30. Regarding the listing, the tentative date is October 1, 2021, but this remains to be confirmed.

6) Objective of the IPO

The question has many purposes. On the one hand, the product will finance the capital expenditure needs as well as the additional working capital needs. A portion will also be used for the repayment and early repayment of all or part of certain outstanding loans / loan facilities used by the company. The rest of the funds will go for general corporate purposes.

7) Size of the issue lot

Paras Defense’s IPO has a minimum lot size of 85 shares and a request amount of Rs 14,875. On the upper end, the lot size stands at 1,105 shares with a request amount of Rs 193 375. Individual Retail Investors (RIIs) can apply for up to 13 lots in the high end.

8) Reservation of investors for the IPO of Paras Defense

Qualified Institutional Buyers (QIBs) have a 50 percent reserve. Non-Institutional Investors (NII) have a 15 percent reserve. RIIs have a reserved share of 35 percent for the IPO.

9) Business promoters

Sharad Virji Shah and Munjal Sharad Shah are the promoters of the IPO of Paras Defense.

10) Company presentation

It should be noted that although it is in a position that makes it one of the very few companies able to occupy a niche in the defense and space technology market in India, the company operates in a sector that requires a high level of working capital. to survive. However, speaking about the outlook and the company’s position in the industry, AngleOne said, “Paras Defense started its journey in 2009, and after 12 years it has successfully positioned itself as a name to be recognized in India’s space and defense sector… The company has two state-of-the-art manufacturing plants in Navi Mumbai and Thane. Paras Defense is one of the few companies able to carry out personalized projects associated with defense and space research.

“Paras Defense’s customer list 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”, AngelOne added.

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