Paras Defence and Space Technologies were established on June 16, 2009. The company is engaged in the business of manufacturing technology required in the space and defense sector. They have a diversified product, application and service portfolio to cater to the industry requirements. Their product portfolio currently ranges to 33 different technologies with many variants in each product. Their whole business is summed up in five verticals with center around Defence and Space Sector. It includes Defence and Space Optics, Heavy Engineering, Niche Technology, Defence Electronics and Electromagnetic Pulse Protection Solutions. Check out Paras Defence and Space Technologies IPO i.e. Allotment Status, Price, Listing Date, And Subscription Status
With an experience of forty years of persistent advancement in the field of Space Designing and Defence technology, the company has been engaged in projects like Missiles, Rockets, Space Technology, Space Research Technology, Naval Intelligence System, Navy Defence Technology, Land and Heavily Clad Armoured vehicles, electronic intelligence and System used for Space Programs and Defence systems. They are also engaged in Reconnaissance and Electromagnetic Shielding systems.
Paras Defence and Space Technologies have a highly advanced and unique manufacturing arrangement and resources. They have an energetic group to foster future advances and give best-in-class answers for their clients. It has a team of specialized engineers of more than 400. The company can offer turnkey arrangements from initial design to product manufacturing of little to huge frameworks as delivered in the past. The company has a huge emphasis on R & R&D. It helps them be recognized as a genuine IDDM firm of India engaged in the defense sector.
IDDM = Indigenously Designed, Developed and Manufactured.
OBJECTS OF THE IPO ISSUE:
- Prepayment of all the loans of the company. It will be availed on a consolidated basis.
- To meet corporate targets.
BASIS OF THE IPO OFFER:
- For space and defense technology, a wide assortment of parts and frameworks are accessible.
- Among India’s pioneer and manufacturing hub for highly précised space and defense optics technology.
- Strong innovative work abilities with an emphasis on R&D and the creation of new technology.
- The organization is situated to benefit from the Government of India campaign “Atmanirbhar Bharat” and “Make in India” programs.
- Excellent client associations with a wide scope of customers.
- Management group with many years of work aptitude.
PARAS DEFENCE AND SPACE TECHNOLOGIES IPO DETAILS:
Paras Defence and Space Technologies, a company in Mumbai, has submitted its DRHP to SEBI. The company filed its DRHP on March 06, 2021. The company intends to bring out its IPO of INR 700 crore in 2021.
The IPO Offer incorporates the issue of fresh equity shares of Rs. 120 crores. It also includes an OFS, offers for sale from the promoters and selling shareholders. The OFS is of up to 17,24,490 equity shares. The face value of each share is Rs. 10. The firm is also targeting pre-IPO allotment of equity shares value worth Rs 35 crore. They got SEBI; s approval on June 15, 2021, to float their IPO in the market. The company stated that the funds raised from the IPO would be utilized to subsidize capital consumption prerequisites, help steady working capital necessities, and repay an existing loan on the company while targeting various corporate benefits for its shareholders.
| IPO Opening Date | 21 September, 2021 |
| Issue Type | Book Building type |
| Issue Size | Rs. 700 Crore |
| Listing At | BSE, NSE |
| Face Value | Rs.10/ equity share |
| Offer for Sale | 17,24,490 equity shares |
| Fresh Issue | 120 cr. |
| IPO Price | |
| Market Lot | |
| Min Order Quantity | |
| IPO Close Date | 23 September, 2021 |
| Basis of Allotment Date | 28 September, 2021 |
| Initiation of Refunds | 29 September, 2021 |
| The Credit of Shares to Demat Account | 30 September, 2021 |
| IPO Listing Date | 01 October , 2021 |
| Type | % Basis of IPO Offer Allotment |
| Qualified Institutional Buyer | 50 |
| Non-Institutional Investor | 15 |
| Retail | 35 |
| TOTAL | 100 |
STRENGTHS & GROWTH ASPECTS OF PARAS DEFENCE AND SPACE TECHNOLOGIES IPO:
- The company has experienced Promoters and a supervisory director and management group.
- They have a focused framework with customer experience.
- The organization has a well-established order book with the excellent customer base. It incorporates both government bodies and private players.
- The company has good business relations with their clients. Their clients are ISRO, Defence R&D Organisation, Bharat Heavy Electricals, Bharat Earth Movers Limited, Bharat Electronics, Hindustan Aeronautics Limited, Bharat Dynamics Ltd, Israel Aerospace Industries, Rafael Advanced Defence Systems, L & T, Godrej & Boyce, Tata Consultancy Services and Tata Power.
- The company has carried out tie-ups with foreign customers such as Advanced 138 Mechanical and Optical Systems of Belgium. It also has tie-ups with Israel’s Chaban Defence and space engineering, Tae Young Optics Company Ltd of South Korea and Green Optics based in South Korea.
- The company has the perfect foundation and Integrated capacities to convey quality engineering and R&D Products.
- They have a state of art R&D department which ensures that the company comes up with innovative technology for their clients.
- The company is setting up long-term contracts with many customers. It will provide revenue visibility.
- Their most significant strength is their ability to provide customized technology required as per their clients.
- Their product portfolio currently ranges to 33 different technologies with many variants in each product.
- The company is engaged in many different types of technology. It doesn’t rely heavily on any single technology manufacturing. It includes Defence and Space Optics, Heavy Engineering, Niche Technology, Defence Electronics and Electromagnetic Pulse Protection Solutions.
- The company has also achieved a quality assurance certification as per the Industrial Standards.
- The company also plan to expand their manufacturing unit capacity. It will increase their revenue and will reflect positivity in their operating margins.
- The organization is situated to benefit from the Government of India campaign “Atmanirbhar Bharat” and “Make in India” programs.
- Finally, the company has Strong fundamentals, impressive business ethics and a customer-centric approach.
WEAKNESS OF PARAS DEFENCE AND SPACE TECHNOLOGIES IPO:
- Their organization, execution of tasks, and financial implementation might endure because of the stoppage of their business exercises.
- Paras Defence and Space Technologies is vulnerable to fluctuation in raw material costs.
- The inaccessibility of raw materials and processed electronics is also another primary concern for them. The company has no supply agreement on a long-term basis with any supplier.
- A huge level of their business depends on few customers. The deficiency of any vital customers because of a negative turn of events or a significant drop in business may affect the company.
- Their quality norms, competition and change associated with supply and demand can affect their business operation.
- The company is engaged in high precision engineering product manufacturing. Any slight error can lead to damage to the whole consignment.
- Paras Defence and Space Technologies requires many funds for working capital to proceed with development in the company. The failure to meet their prerequisites for operation will affect their business operation.
- Their working capital requirements are supposed to remain high for FY22 and FY23.
- Their business will be affected if they don’t execute their growth plan properly.
- COVID-19 has significantly hampered their estimated operating margins and projects delivery.
- For a business with ISRO and the Ministry of Defence, their operating margins and ratios depend on the budget assigned to the department.
- The company has some contingent liabilities. These are not accounted for in their financial statement. No provisioning is also done for these liabilities.
- They depend on government limitations; the company regularly needs to renew vital legal and administrative licenses, grants, and certificates. It also needs to satisfy the quality standards to continue its business operation.
- From the last year’s financial reports, their net cash flow has not been very good. It is an alarming aspect to their business operation.
- Their failure to prevent interferences in service could lead to a negative impact on their business.
- They are engaged in the production and manufacturing of complex automotive and non-automotive parts. It is a tedious and expensive interaction with obscure cut-off times and outcomes.
- Failure to adjust to industry drifts and developing advancement to fulfill their customers’ requirements can negatively impact the company.
FINANCIAL TREND OF THE COMPANY:
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) |
| Financial Year 2020 | 6.92 | 6.92 |
| Financial Year 2019 | 6.75 | 6.74 |
| Financial Year 2018 | 8.99 | 8.99 |
- The company improved its Basic and Diluted EPS by 2.74% in FY20 from FY19.
- The Core EBITDA Margins in FY20 were at 27.01%. It registered a decline of 3.47% from FY19.
- The EBIT Margins also registered a decline of 8% in FY20. The current value in FY20 stood at 21.77%.
- The PAT and the Cash Profit Margins, however, improved. They improved by 8.8% and 8.68%, respectively, in FY20. The PAT margins were 13.37%, while Cash Profit Margin was 19.97%.
- Paras Defence and Space Technologies have a ROA of 5.85%. It has a ROCE of 14.90%. The ROCE reduced 30% in FY20 due to the impact of COVID from FY19.
- In FY20, the company improved upfront in Trade Receivables Days, Inventory Days and Payable Days.
- The company has a Debt/equity ratio of 0.79. The total debt on the company in FY20 was 1033.24 Crores.
- In FY20, the net sales growth was -4.76%. As a result of it, it has to carry out heavy provisioning of their products.
- In FY20, the company had net current assets, including all investments worth 697.9 Crore. It was marked by an increase of 47% from FY19.
| Particulars | For the year/period ended ( in Cr.) | ||||
| 30-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 352.55 | 342.39 | 329.75 | 256.80 | |
| Total Revenue | 37.94 | 149.05 | 157.17 | 152.53 | |
| Profit After Tax | .09 | 20.26 | 18.53 | 25.06 |
| (in ₹ million, other than share data) Particulars | Fiscal | ||||
| 2021 | 2020 | 2019 | |||
| Equity Share capital | 298.53 | 284.12 | 56.82 | ||
| Net worth | 1,724.39 | 1387.36 | 1190.79 | ||
| Revenue from operations | 1,433.30 | 1,470.43 | 1,543.99 | ||
| Profit/ (loss) after tax | 157.86 | 196.57 | 189.70 | ||
| Earnings per Equity Share of ₹ 10 each (basic) | 5.55 | 6.92 | 6.75 | ||
| Earnings per Equity Share of ₹ 10 each (diluted) | 5.55 | 6.92 | 6.74 | ||
| Net asset value per equity share | 55.23 | 46.03 | 38.90 | ||
| Total borrowings | 1,061.01 | 1,033.95 | 849.52 | ||
PEER COMPARISON:
As of currently, Paras Defence and Space Technologies have no such peer competition. There is no such company currently listed on exchanges that is engaged in the same business. There is no such company listed on exchanges having a wide range of products and services equivalent to theirs or a scale of business operations compared to theirs.
PROMOTER OF PARAS DEFENCE AND SPACE TECHNOLOGIES IPO:
The major promoters of the company are
· Sharad Virji Shah
· Munjal Sharad Shah
| Pre-Issue Share Holding | 79.40% |
| Post-Issue Share Holding |
CONTACT DETAILS:
D-112, TTC Industrial Area, MIDC, Nerul,
Navi Mumbai 400 706, Maharashtra, India.
Tel: +91 9820 974 974
E-mail: ir@parasdefence.com
Website: https://www.parasdefence.com
REGISTRAR:
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: Parasdefence.ipo@linkintime.co.in
Website: http://www.linkintime.co.in
LEAD MANAGER(s) OF PARAS DEFENCE AND SPACE TECHNOLOGIES IPO:
- Anand Rathi Advisors Limited
