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, has raised Rs. 51 crores towards Anchor tranche of the initial public offering (IPO). Five marquee investors participated in the Anchor Book; including marquee foreign portfolio investors and domestic investors (including Mutual Funds and Insurance Companies). The Company informed the bourses that it has allocated 29,27,485 equity shares at an upper band of Rs. 175 per equity share on Monday, September 20, 2021 to Anchor Investors. The bid/offer period in relation to its IPO of Equity Shares opened on Tuesday, September 21, 2021 and closed on Thursday, September 23, 2021.
Marquee investors includes Ashoka India Equity Investment Trust, Abakkus Emerging Opportunities Fund, Saint Capital Fund, Nippon Small Cap Fund and HDFC Focused 30 Fund.
As per the "Defence and Space Industry Report" prepared by Frost & Sullivan ("F&S Report"), the Company, is amongst India's leading private sector Company catering to four major segments of 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 the 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 opto-mechanical 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 sub systems 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), Electronic 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.
Anand Rathi Advisors Limited is the book running lead manager to the Offer ("BRLM").
The Offer comprises of a fresh issuance of Equity Shares aggregating up to ₹ 1,406 million ("Fresh Issue") and an offer for sale of up to 17,24,490 Equity Shares by Selling Shareholders.
The Company's initial public offering of Equity Shares (the "Offer") opened on Tuesday, September 21, 2021 and closed on Thursday, September 23, 2021. The price band for the Offer was determined at ₹ 165 - ₹ 175 per Equity Share.