Paras Defense and Space Technologies’ initial public offering (IPO) of Rs 170.7 crore opens today, September 21, 2021. The Mumbai-based defense company’s IPO, consisting of a new issue in the amount of Rs 140.60 crore and an offer to sell (OFS) of up to 1.72 million shares, will remain open for three days until September 16.
Investors in the public issue can bid on a minimum of 85 shares and in multiples thereof, up to 13 lots. In total, 50 percent of the issue size has been reserved for qualified institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
The company will use the proceeds of the IPO to purchase machinery and equipment, finance additional working capital requirements and for general corporate purposes.
Paras Defense is involved in defense and space optics, defense electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies. Its main customers are Bharat Electronics, Bharat Dynamics and Hindustan Aeronautics, as well as companies based in Belgium, Israel and South Korea.
Should we invest in the IPO of Paras Defense?
Paras Defense is looking to expand its production capacity and gain new market share in India, as well as expand overseas. At the higher end of the price bracket, Paras Defense is aggressively priced at a P / E ratio of 43 times FY21 EPS (on a post-issue basis), âIndwealth said in a note to its investors.
“Considering factors such as strong outlook, higher budget allocation going forward, stable operating performance, strong order book, stable margins and yield ratios, we remain positive on the outlook for this issue. “, added Indwealth.