Paras Defence IPO subscribed 304.26 times on the final day of the issue

The Rs 170.7 crore initial public offering (IPO) of Paras Defence and Space Technologies Limited was subscribed 304.26 times on Thursday, the third and the final day of the public issue. The IPO received bids for 2,17,26,31,875 shares against issue size of 71,40,793 shares, according to the NSE data.

The Qualified Institutional Buyers (QIBs) portion was subscribed 169.65 times, while Non-Institutional Investors (NII) and Retail portions were subscribed 927.70 times and 112.81 times, respectively. The price band for the issue was fixed at Rs 165-175 per share. The issue comprised a fresh issue of Rs 140.6 crore by the company and an offer for sale of up to 17,24,490 equity shares worth Rs 30 crore by existing shareholders including Paras Defence promoters.

The IPO comprises fresh issuance of shares worth Rs 140.6 crore and an offer of sale (OFS) of up to 17,24,490 equity stocks by promoters and existing shareholders. Those selling shares on the OFS are promoters-- Sharad Virji Shah, Munjal Sharad Shah and individual selling shareholders are -- Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan.

The company will use the proceeds of the fresh issue for the purchase of machinery and equipment, funding incremental working capital requirements, repaying or prepayment of certain borrowings, and general corporate purposes.

On other hand, the Mumbai-based defence company Paras Defence and Space Technologies raised a little over Rs 51 crore from anchor investors, ahead of its initial share sale. It allotted 29,27,485 equity shares to anchor investors at Rs 175 apiece, valuing the transaction at Rs 51.23 crore. Ashoka India Equity Investment Trust Plc, Abakkus Emerging Opportunities Fund-1, Saint Capital Fund, Nippon India Mutual Fund and HDFC Mutual Fund participated in the anchor book.

The share allotment is likely to take place on September 28, 2021, while the refunds would be initiated on September 29, 2021. The equity shares will be credited into the DEMAT accounts of allottees on September 30, 2021. The shares are expected to be listed on October 1, 2021.

Anand Rathi Advisors is the book running lead manager to the issue. The equity shares of the company would be listed on BSE and NSE.

Paras Defence and Space Technologies Limited is an Indian private sector company engaged in designing, developing, manufacturing and testing a wide range of defence and space engineering products and solutions. It is one of the leading 'Indigenously Designed Developed and Manufactured' category private sector companies in India, which caters to four major segments of the Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse protection solution and heavy engineering. We are also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India. (Source F&S Report)