Paras Defence IPO opens tomorrow: Check GMP, net profit, and all you need to know

Paras Defence and Space Technologies are all set to open its initial public offering (IPO) on September 21. With an initial share listing of Rs 171 crore, the company is expecting a positive return based on its grey market performance. Here’s everything you need to know about the private sector company engaged in developing defence and space engineering products.

Paras Defence IPO date

Paras Defence and Space Technologies will open its IPO on Tuesday, September 21, 2021, and will conclude subscription on Thursday, September 23. The share allotment is reported to take place on September 28, while the share listings would happen on October 1. The initiation of refunds will happen on September 29.

Paras Defence market valuation

According to brokerage firms, the company’s total assets amount to around Rs 363 crore as of 2021. The engineering company aims to raise Rs 170.78 crore through the offer, with a price band fixed for Rs 165-175 per share. Investors who wish to subscribe to the IPO can bid in the lot of 85 equity shares and multiples thereafter. The IPO will comprise a fresh issue of Rs 140.6 crore by the company and an offer for sale of up to 17,24,490 equity shares by existing shareholders. The IPO will have a reservation of 50% for qualified institutional buyers (QIBs) and 15% will be reserved for non-institutional investors (NIIs). Retail investors will be eligible to subscribe to the remaining 35% of the issue.

Paras Defence net profit

Paras Defence and Space Technologies recorded a total income of Rs 149.05 crore for the fiscal year ended 31 March 2020. The company accumulated Rs 37.94 crore for the six-month period ended 30 September 2020. The consolidated profit after tax stood at around Rs 20 crore for the fiscal year, while the profit for the fiscal year 2021 has been recorded at around Rs 16 crore. According to the red herring prospectus, the proceeds from the company’s fresh issue of shares will be used for the purchase of machinery and equipment and repayment of debts besides general corporate purposes.

Paras Defence IPO grey market price

The Paras Defence IPO is showing promise according to market observers. The company is in demand and saw a rise in the grey market premium since its listing announcement. Paras Defence shares were trading at Rs 385 to Rs 395 on September 20, and the premium stood at around Rs 220 in the unlisted market. The grey market price rose around Rs 100 in the past four days.

About Paras Defence

Based in Navi Mumbai, Paras Defence and Space Technologies is an engineering company. The firm designs develop and test a wide range of defence and space engineering products and solutions in its research and development facilities. The company is also the sole Indian supplier of critical imaging components for space applications. The company supplies products for major clients like Bharat Electronics, Bharat Dynamics, and Hindustan Aeronautics along with some foreign firms in Belgium, Israel, and South Korea.

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