Paras Defence IPO To Open Tomorrow
Paras Defence and Space Technologies' IPO will consist of a fresh issue of shares worth ₹ 140.60 crores and an offer for sale of up to 1.72 million shares by promoters and existing shareholders
Paras Defence and Space Technologies initial public offering (IPO) is to open for subscription tomorrow i.e. September 21, 2021, and close on September 16. The IPO of the Mumbai-based defence company will consist of a fresh issue of shares worth ₹ 140.60 crores and an offer for sale (OFS) of up to 1.72 million shares by promoters and existing shareholders. The IPO is expected to garner ₹ 170.7 crores at the upper end of the price band. The shares are likely to list on the bourses on October 1.
Promoters, Sharad Virji Shah and Munjal Sharad Shah, and individual shareholders viz. Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan will participate in the OFS.
Investors can bid for a minimum of 85 shares and in multiples thereafter, up to 13 lots. Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. The company will utilise the IPO proceeds to purchase machinery and equipment, fund incremental working capital requirements and for general corporate purposes.
Paras Defence operates in five verticals viz. defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies. Its major clients include defence public sector undertakings such as Bharat Electronics, Bharat Dynamics and Hindustan Aeronautics, and companies in Belgium, Israel and South Korea.
Anand Rathi Advisors is the book running lead manager to the public issue, whereas Link Intime is the registrar to the issue.