Defence engineering company Paras Defence and Space Technologies Limited has decided to open its initial public offering (IPO) for subscription on September 21, seeking to ride investor interest in new share sales and become the 42nd company to raise capital from the stock market in 2021.
The IPo, which will close on September 23, comprises 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 including Paras Defence promoters. The price band and lot size of the sale will be announced by the company at a press conference on September 16.
Sharad Virji Shah will sell 1.25 million shares via the offer for sale, and Munjal Sharad Shah will sell 50,000 shares. Ami Munjal Shah will sell 300,000 shares, and Shilpa Amit Mahajan and Amit Navin Mahajan will offer 62,245 shares each.
Paras Defence had raised Rs 34.402 crore through a pre-IPO placement of 25,52,598 equity shares.
The company intends to use the proceeds of the fresh issue of shares for purchase of machinery and equipment; funding incremental working capital requirements, and repaying debts besides general corporate purposes.
Founders Sharad Virji Shah and Munjal Sharad Shah cumulatively hold 59.53 percent equity shareholding in Paras Defence. Total promoter and promoter group shareholding in the company was 79.40 percent and the remaining held by public shareholders. including Abakkus Emerging Opportunities Fund 1, which has a 1.01 percent stake in the defence company.
Paras Defence is engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions, catering to four major segments of the defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (EMP) protection solutions and heavy engineering.
It is also the sole Indian supplier of critical imaging components such as large sized optics for space applications. It has two manufacturing facilities in Maharashtra.
Anand Rathi Advisors is the book running lead manager to the issue.
The Paras Defence IPO comes at a time when investors are snapping up new share sales. Newly listed stocks are beating the benchmark by the most in seven years, helped by a record pace of IPOs seen by some as the start of a multiyear expansion for the stock market, Bloomberg reported last month.
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