Paras Defence and Space Technologies fixes price band at ₹165-175 per share

Paras Defence

Mumbai-based Paras Defense and Space Technologies Ltd’s initial public offering has fixed its price band of ₹165-175 a share. Earlier, the firm said it will open for subscription on 21 September and closes on 23 September.

Mumbai-based Paras Defense and Space Technologies Ltd’s initial public offering has fixed its price band of ₹165-175 a share. Earlier, the firm said it will open for subscription on 21 September and closes on 23 September.

The issue comprises a fresh issuance of equity shares worth ₹140.60 crore and an offer of sale of up to 1.72 million equity stocks by promoters and existing shareholders. The firm planning to list on 1 October. On the upper band, the firm will raise around ₹170.70 crore.

The OFS consists of upto 1.25 million by Sharad Virji Shah, upto 50,000 shares by Munjal Sharad Shah, upto 3 lakh shares by Ami Munjal Shah, and upto 62,245 shares each by Shilpa Amit Mahajan and Amit Navin Mahajan.

Paras Defense and Space Technologies caters to four major segments of the Indian defence sector, namely, defence and space optics, defence electronics, electro-magnetic pulse (EMP) protection solution, and heavy engineering.

It intends to utilize the net proceeds of the issue to purchase machinery and equipment, funding incremental working capital requirements, repaying certain borrowings, and for general corporate purposes.

On the domestic front, the company’s customer base ranges from PSUs to various defense public sector undertakings like Bharat Electronics Ltd, Bharat Dynamics Ltd, and Hindustan Aeronautics Ltd. Currently, it operates through two manufacturing facilities in Maharashtra—Navi Mumbai and Thane. It also has foreign customers in Belgium, Israel, and South Korea.

The company’s total income was ₹149.05 core for the fiscal year ended 31 March 2020, and ₹37.94 crore for the six-month period ended 30 September 2020. Consolidated profit after tax was at ₹19.65 crore for the fiscal year ended 31 March 2020, and it incurred a loss of ₹0.14 crore for the six-month period ended 30 September 2020.

NEWS CREDIT: LIVE MINT

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