About the Company:
Paras Defence and Space Technologies is an Indian private sector company engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions.
Company is one of the leading ‘Indigenously Designed Developed and Manufactured’ (“IDDM”) category private sector company in India which caters to four major segments of Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution and heavy engineering.
Company is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India.
Company’s goal is to become one of the leading global companies for optics for defence and space sector.
Company’s categories of product offerings are as follows:
- Defence and space optics.
- Defence electronics.
- EMP protection.
- Heavy engineering for defence and niche technologies.
- Niche technologies.
- Defence and space optics operations:
Company’s defence and space optics operations include manufacturing high precision optics for defence and space applications such as thermal imaging and space imaging systems.
Company is one of the leading providers of optics for various Indian defence and space programmes, and the only Indian company with the design capability for space-optics and opto-mechanical assemblies.
2. Defence electronics operations.
Company’s defence electronics operations include providing a wide array of high performance computing and electronic systems for defence applications, including sub systems for border defence, missiles, tanks and naval applications.
Company’s domain expertise in electronics for defence applications has allowed company to contribute to some of the most prestigious defence programmes of the country.
3. EMP protection Solutions.
Company’s EMP protection solutions include designing, developing, manufacturing and commissioning various solutions for EMP Protection.
Company has the ability to undertake and deliver customized turnkey projects in the defence segment, especially in the defence electronics and EMP protection segments.
Company is one of the few companies with specialized technology capabilities such as manufacturing EMP protection and Company is expected to be an integral stakeholder in a majority of future sourcing of defence and space optics and EMP protection solutions.
4. Heavy engineering for defence operations.
Company’s heavy engineering for defence operations involves providing heavy engineering products and solutions, such as components for rockets and missiles along with providing mechanical manufacturing support to other verticals of our business.
Company’s specialise in high end manufacturing for defence and space applications and have been providing our customers with customised and exclusive mechanical products since our inception.
5. Niche technologies division.
Under niche technologies division, company has identified and partnered with some of the leading technology companies around the world in order to indigenise advanced technologies in the defence and space sectors for catering to the Indian market. This also affords us an opportunity to serve as manufacturing partner for global requirements of such overseas technology companies.
Company’s manufacturing facilities.
Company has two manufacturing facilities in Maharashtra, located at Nerul in Navi Mumbai and Ambernath in Thane.
The Nerul facility is an advanced nano technology machining centre for producing high quality optics and ultra-precision components.
Nerul facility is engaged in manufacturing of Optics, Design, Development, Manufacturing and Integration of Electronics and EMP protection products and solutions.
The Ambernath facility is engaged in manufacturing of heavy engineering products.
Company is also in the process of expanding our manufacturing facility located at Nerul in Navi Mumbai, Maharashtra.
Expansion of Facilities.
Company is in the preliminary stages of augmenting the manufacturing facility located at Nerul in Navi Mumbai, Maharashtra and Ambernath in Thane, Maharashtra by expanding its production capacity and installing new equipment from the proceeds of the Offer and from internal accruals.
Company’s customer base includes Government arms and notable Indian public and private sector companies including:
- Bharat Electronics Limited (BEL)
- Hindustan Aeronautics Limited (HAL)
- Bharat Dynamics Limited (BDL)
- Hindustan Shipyard Limited (HSL)
- Electronic Corporation of India Limited (ECIL)
- Tata Consultancy Services Limited (TCS)
- Solar Industries India Limited
- Alpha Design Technologies Ltd.
- Astra- Rafael Comsys Pvt. Ltd.
Company’s Order Book: (as on June 30, 2021)
- Mr. Sharad Virji Shah (Designation: Chairman and Non- Executive Director)
- Mrs. Munjal Sharad Shah (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs.30.17 cr)
- Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 140.6 cr)
- Purchase of machinery and equipment.
- Funding incremental working capital requirements of the Company.
- Repayment or prepayment of all or a portion of certain borrowings/outstanding loan facilities availed by the Company.
- General corporate purposes.
Peer Group Comparison:
- Company does not have any listed industry peers in India. Hence we cannot make any comparison.
Positives for the Company:
Leading IDDM category company in the Indian defence industry.
- Recently, the Ministry of Defence, Government of India (“MoD”) has announced the Defence Acquisition Procedure, 2020 (“Defence Acquisition Procedure”) which focuses on significantly boosting indigenous production and turning India into a global manufacturing hub of weapons and military platforms.
- This is expected to provide a boost to indigenous defence companies such as ours and we believe that with the expertise and technological know-how that we have, we are poised to take advantage of the expected growth in India’s defence industry.
- Company falls within category of IDDM, the highest category in the priority of categorization under Defence Acquisition Procedure since most of the products and components are designed, developed and manufactured by us in India.
Caters to four major segments of Indian defence & Diverse customer base.
- Company caters to four major segments of Indian defence sector i.e. defence optics, defence electronics, EMP protection solution and heavy engineering offering one-stop solution to all our customers.
- Company has a diversified customer base which ranges from Government arms and government organizations involved in defence and space research, to various defence public sector undertakings such as Bharat Electronics Ltd and Hindustan Aeronautics Ltd, to various private entities such as Tata Consultancy Services etc.
Company offers wide range of products and solutions for both defence and space applications:
- Company offers wide range of products and solutions for defence as well as space applications. As of June 30, 2021, company has a range of 34 different categories of products and solutions, with multiple variations in each category.
Company is one of the few players in high precision optics manufacturing for space and defence application in India.
- Company is one of the few manufacturers in India with a comprehensive in-house capabilities of designing, developing and manufacturing optics for space and defence application in India.
- Company’s manufacturing facility in Nerul, Navi Mumbai has uniquely positioned us to cater to the demand for optics for space and defence application.
Well positioned to benefit from the Government’s “Atmanirbhar Bharat” and “Make in India” initiatives.
- India is witnessing path-breaking reforms in the defence sector. Recently, the MoD has announced the Defence Acquisition Procedure which has come into effect from October 1, 2020.
- This procedure focuses on significantly boosting indigenous production and turning India into a global manufacturing hub of weapons and military platforms.
- This procedure has been aligned with the vision of the Government’s Aatmanirbhar Bharat (self-reliant India) initiative and to empower Indian defence industry through ‘Make in India’ projects.
Financials of the Company:
|(in Crores)||FY 18||FY 19||FY 20||FY 21|
|Issue Opens on||21st September 2021|
|Issue Closes on:.||23rd September 2021|
|Issue Price||Rs.165 -175|
|Retail Category Allocation||35%|
|Minimum Lot||85 Shares|
|Issue Size||Rs.176 cr ($ 23 million)|
|Market Cap||Rs. 687 cr ($ 92 million)|
|Listing at||NSE & BSE|
|Equity Shares Offered (Fresh)||83,43,200|
|Equity Shares Offered (OFS)||17,24,490|
|Equity Shares Offered (Fresh + OFS)||1,0067,690|
|Equity Shares Prior the Issue||3,09,65,775|
|Equity Shares after the Issue||3,93,08,975|
Also Read : List of Upcoming IPO’s in India.
|Finalization of Basis of Allotment||On or Before 28th September 2021|
|Initiation of Refunds||On or Before 29th September 2021|
|Credit of Equity Shares:||On or Before 30th September 2021|
|Listing Date:||On or Before 1st October 2021|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
Link InTime Website: https://linkintime.co.in/PublicIssue/
BSE IPO Website: https://www.bseindia.com/IPO/Allotment
|Company Contact Info:|
|Paras Defence and Space Technologies Limited
D-112, TTC Industrial Area
Navi Mumbai 400 706
Telephone: +91 9820 974 974
|IPO Registrar Info:|
|Link Intime India Private Limited
C-101, 1st Floor
247 Park, L.B.S Marg, Vikhroli (West)
Mumbai 400 083
Tel: +91 22 4918 6200
|Lead Manager to the Issue:|
|Anand Rathi Advisors Limited
10th Floor, Trade Tower D, Kamala City
Senapati Bapat Marg, Lower Parel
Mumbai 400 013
Tel: +91 22 6626 6666