Paras Defence raises Rs. 51 crores from Anchor Investors
Five marquee investors participated across investor categories
20th September, 2021
Paras Defence and Space Technologies Limited (“Company”); one of the ‘Indigenously Designed Developed and Manufactured Company’ (“IDDM”) category private sector companies in India, primarily engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions, has raised Rs. 51 crores towards Anchor tranche of the initial public offering (IPO). Five marquee investors par ticipated in the Anchor Book; including marquee foreign portfolio investors and domestic investors (including Mutual Funds and Insurance Companies). The Company informed the bourses that it has allocated 29,27,485 equity shares at an upper band of Rs. 175 per equity share on Monday, September 20, 2021 to Anchor Investors. The bid/offer period in relation to its IPO of Equity Shares will open on Tuesday, September 21, 2021 and closes on Thursday, September 23, 2021.
Marquee investors includes Ashoka India Equity Investment Trust, Abakkus Emerging Opportunities Fund, Saint Capital Fund, Nippon Small Cap Fund and HDFC Focused 30 Fund.
As per the “Defence and Space Industry Report” prepared by Frost & Sullivan (“F&S Report”), the Company, is am ongst India’s leading private sector Company catering to four major segments of Indian defence sector na mely, defence optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution, and heavy eng ineering for defence and niche technologies. The Company is the sole Indian supplier of critical imaging com po nents su ch as large size optics and diffractive gratings for space applications in India. The Company manufact ures high precision optics for the defence and space applications such as thermal imaging and space imaging sy stems. As per the F&S Report, it is the only Indian Company to have the design capability for space-optics and opto-mech anical assemblies.
The Company has contributed towards some of the most prestigious defence programmes; and under its def en ce electronics operations it has managed to provide a wide array of high performance compu ting and ele ctronic sy stems for defence applications, including sub systems for border defence, missiles, tanks and naval applicatio ns. The Company has undertaken and delivered customized turnkey pro jects in the defence segment, especially in the defence electronics an d EMP protection segments. Currently, the Company operates thro ugh two manuf acturing facilities in Maharashtra, located at Nerul (Navi Mumbai) and Ambernath (in Thane).
At the domestic front, the Company’s customer base ranges from go vernment organizations involved in defence and space research to various defence public sector undertakings like Bharat Electronics Limited (BEL), Electr onic Corporation of India Limited (ECIL) and Hindustan Aeronautics Limited (HAL); and su pply products and solu tions to private entities including Tata Consultancy Services Limited, Solar Industries India Limited and Alpha Design Technologies Limited. The Company has also catered to various foreign custo mers.
Anand Rathi Advisors Limited is the book running lead manager to the Offer (“BRLM”).
IPO Details
The Offer comprises of a fresh issuance of Equity Shares aggregating up to ₹ 1,406 million (“Fresh Issue”) and an offer for sale of up to 17,24,490 Equity Shares by Selling Shareholders.
The Company is proposing to open its initial public offering of Equity Shares (the “Offer”) on Tuesday, September 21, 2021 and closes on Thursday, September 23, 2021. The price band for the Offer has been determined at ₹ 165 – ₹ 175 per Equity Share.
