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Paras Defence’s IPO sees vigorous response from retail investors; Issue subscribed 16.57 times on Day 1

Mumbai, September 21, 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, received bids of 11,82,91,695 shares against the offered 71,40,793 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 31.36 times and the Non-Institutional Investor category was subscribed 3.77 times, While the Qualified Institutional Buyer category was subscribed 0.01 times. The Issue was subscribed 16.57 times.

The Offer comprises fresh issuance of Equity Shares aggregating up to ₹ 140.6 crores (“Fresh Issue”) and an offer for sale of up to 17,24,490 Equity Shares by Selling Shareholders.

The Company raised Rs. 51 crores through the Anchor Book from 5 investors. The Company had allocated 29,27,485 equity shares at an upper band of Rs. 175 per equity share on Monday, September 20, 2021, to Anchor Investors.

Marquee investors include Ashoka India Equity Investment Trust, Abakkus Emerging Opportunities Fund, Saint Capital Fund, Nippon Small Cap Fund and HDFC Focused 30 Fund.

Anand Rathi Advisors Limited is the book running lead manager to the Offer (“BRLM”).

Company Information

As per the “Defence and Space Industry Report” prepared by Frost & Sullivan (“F&S Report”), the Company, is amongst India’s leading private sector Companies catering to four major segments of the Indian defence sector namely, defence optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution, and heavy engineering for defence and niche technologies. The Company is the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India. The Company manufactures high precision optics for defence and space applications such as thermal imaging and space imaging systems. As per the F&S Report, it is the only Indian Company to have the design capability for space-optics and optomechanical assemblies.

The Company has contributed towards some of the most prestigious defence programmes; and under its defence electronics operations, it has managed to provide a wide array of high-performance computing and electronic systems for defence applications, including subsystems for border defence, missiles, tanks and naval applications. The Company has undertaken and delivered customized turnkey projects in the defence segment, especially in the defence electronics and EMP protection segments. Currently, the Company operates through two manufacturing facilities in Maharashtra, located at Nerul (Navi Mumbai) and Ambernath (in Thane).

At the domestic front, the Company’s customer base ranges from government organizations involved in defence and space research to various defence public sector undertakings like Bharat Electronics Limited (BEL), Electronics Corporation of India Limited (ECIL) and Hindustan Aeronautics Limited (HAL); and supply products and solutions 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 customers.

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