Paras-Defence-And-Space-Technologies-Limited-IPO-Elite-Wealth-limited.
IPO-Note Paras Defence and Space Technologies Limited
Rs-165-Rs175  per Equity share Recommendation: Listing Gain

Company Profile: –

Paras Defence and Space Technologies Limited is engaged in designing, developing manufacturing and testing a broad array of defence and space engineering products. The company has five major product category offerings – Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies. It is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India. They are currently developing several new products, such as hyper spectral space camera ARINC -818 based avionic display and naval periscopes, and multi and hyper spectral cameras for drones and space, Unmanned Aerial Vehicles, cubesats and anti-drone system. It has two manufacturing Facility in Maharashtra and generate majority of its revenue from government and PSU entities.

 

Paras Defence and Space Technologies Limited IPO

Wants To Apply Online


 

                                                                            Issue Details
Objects of the issue · To carry out the Offer for Sale of up to 1,724,490 Equity Shares by the Selling Shareholders; and

· Purchase of Machinery and Equipment.

· Funding Incremental working capital requirements of the company.

· Repayment or prepayment of outstanding loan facility availed by the company.

Issue Size Total issue Size -Rs. 171 Cr.

Offer for Sale – Rs. 30.2 Cr.

Face value Rs.10.00 Per Equity Share
Issue Price Rs. 165 – Rs. 175
Bid Lot 85 shares
Listing at BSE, NSE
Issue Opens: 21st  Sep, 2021 – 23rd  Sep, 2021
QIB 50% of Net Issue Offer
Retail 35% of Net Issue Offer
NIB 15% of Net Issue Offer

 

 

Check Paras Defence and Space Technologies Limited IPO Allotment Status

Paras Defence and Space Technologies Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To Paras Defence and Space Technologies LimitedIPO Allotment Status
  2. Go to Application Status
  3. Select IPO as Paras Defence and Space Technologies Limited
  4. Enter your PAN Number or Application Id or DP Client Id.

 

Paras Defence and Space Technologies Limited IPO

Application Form

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoter Group 79.40% 59.71%
Public  20.60% 40.29%

Strengths:

  • One of the few supplier in high Precision optics manufacturing for space and defence and space application
  • Strong R&D capabilities with focus on innovation
  • Very strong order book of ₹305 crore so very high certainty of good revenue growth in coming year.
  • Well diversified business model with diverse customer base.

Key Highlights:

  • Revenue from operations saw a growth at a CAGR of -1.3% from FY18-21 and profit growth at a CAGR of -14.4% from FY 18-21.
  • EBITDA Margin improved from 26.71% in FY20 to 30.3% in FY21
  • Defence and space optics represent 45% of defence, Electronics represent 28% and Heavy Engineering represent 27% of revenue.
  • Customer base includes government arms and notable Indian public and private sector companies.
  • India is the major revenue contributor to the company contributed 83% of total revenue in FY21 while export constitute 17% of revenue.
  • Current Ratio improved from 1.65 to 1.90 in FY21.
  • ROE of the company deterioted from 16.29% to 10.68%.

Risk Factors:

  • There is constant degrowth in revenue and PAT of the company, and negative free cash flow of the company can deteriorate balance sheet of the company.
  • The company is very much dependent on Government of India for contracts.
  • During 12month company has issued equity share at a price lower that may be lower than offer price.

Outlook:

Paras limited is engaged in wide range of defence and space engineering products and service. Company being one of the key player in high precision optics manufacturing for space and defense application Company drives most of his revenue from government entities and  well positioned to benefit from “Atmanirbhar Bharat “ initiative by GOI and increasing defense budget by the government.

At the higher price band of ₹175, the offer is made at P/E multiple of 31.53x of FY21 EPS, Considering its niche product profile and technology, dominant market positioning and vast growth potential, strong order book and uniqueness of product which make hard for other companies to enter in this segment, we recommend Listing Gain to the IPO.

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