A

PROJECT REPORT
ON
“Study of IPO on stockmarket” For “Paras
Defenc & space”
IN PARTIAL FULFILMENT OF
BACHELOR OF BUSINESS ADMINISTRATION
(T.Y.B.B.A.)[CBCS Pattern]

SAVITRIBAI PHULE PUNE UNIVERSITY

SUBMITTEDTO

K.V.NNAIK SHIKSHAN PRASARAK SANSTHA’S

ARTS,COMMERCE AND SCIENCE COLLEGE
CANADA CORNER, NASHIK – 02

UNDER GUIDANCE OF

Prof.Supriya Pawar

ACADEMIC YEAR
2021-2022
PREPARED BY
Shubham Pagare
 K.V.N.Naik Shikshan Prasarak Sanstha’s
Art’s, Commerce & Science College
Canada Corner, Nashik-422002
Website:- www.kvnacs.org Phone:-0253-2576692
NAAC Reaccredited ‘B++’ Grade
…………………………………………………………………..

CERTIFICATE

This is to certify that,Mr./Ms.PAGARE SHUBHAM DAYALAL

of TYBBA CREDIT PATTERN 2019 [CBCS Pattern] Class hasPrepared &

Submitted PROJECT on FINANCE satisfactory for

_"Studay Of IPO on stockmarket" Of "Paras Defence & Space" _

During the academic year 2021-2022

(Semester-V) and same has examined and signed by the in-charge.

In-charge Int.Examiner Ext.Examiner Principal

 Preface

Industrialvisitmakestudentsunderstandthesubjecttoitscore.Italsogivesideatostudentsaboutt
heirjobprofileoncetheystartworking.Industrialvisitintheentirefieldhavesameprocedurewherestuden
tsaregivenintroductionoftheparticularorganization,theyaretakenalongtoallthedepartments,andthusi
nchargeofparticularone'sexplainsaboutit.Studentsareaskedtonotedowneverythingbecauseattheen
dofvisit,thereissmallQandAsessionwhich theya needto
Manyorganizations also sked
undergo.theirstudents
towriteaboutthevisitasapartofassignment.

ThisProjecthasbeenpreparedasapartofthePuneUniversitycoursecurriculum.Thetopicforthi
s project “IndustrialExposure”,I foundveryinteresting
andeducative.IgainedknowledgeaboutsomeoftheHRaspectsandalsoRetailOperations.Apracticale
xposureofworkinginanorganization;althoughforabriefperiodwillhoweverbenefitmeinthelongrun.T
hisexperiencewillbetreasuredbymealways.

Mostofthepeoplearetryingtoengagethemselvesinthissector.Beforeenteringinthissectorones
houldhaveknowledgeofanoverviewofhowthisindustryandmarketoperates.Thisprojectiscarriedoutt
otranslatethetheoreticalknowledgeoftheHR,IndustrialRelations&LabourLawsubjectintothepractic
alfieldwork.

Keepingthisinmind,itisthematterofgreatprivilegeandsatisfactionformetopresentthisreportb
eforethereaders.Iamsurethisattemptofpresentationwillbridgethegapbetweentheoryandpractice.
 1. ACKOWLEDGEMENT

Itisagreatpleasuretomeinacknowledgingmydeepsenseofgratitudetoallthosewho
have helped me in completingthisprojectsuccessfully.Firstofall ,I

wouldliketothankSavitribaiPhulePuneUniversityforprovidingmeanopportunitytoundertakeaprojectasapartialful

filmentofBBAdegree.Inadditionprovidingguidanceindevelopinginmyproject.

I greatly appreciatethestaffof thesurveyedbusinessunit,who

respondedpromptlyandenthusiasticallytomyrequestsforfrankcommentsdespitetheircongestedschedules.Iamind
ebtedtoallofthem,whodidtheirbestirringimprovementsthroughtheirsuggestions.
IwouldliketothanksDr.VasantWagh(Principal),Mr.SudamBhabad(HOD,&ProjectGuide)Ms.NeetaSang
ale,Ms.ShibaniPaul,Ms.SupriyaPawar&departmentstaffwhosevaluableguidanceandencouragementatev
eryphaseoftheprojecthashelpedtopreparethisprojectsuccessfully.

Allthefaculties,officestaffandlibrarystaffofKr.V.N.NAIKCollegeNasikandfriendswhohelpedmeinso
meorotherwayinmakingthisproject.

THANKYOU

PLACE:NASHIK Shubham
pagareDATE: //2022
 Index

Srno Topic PgNo

CHAPTER1 INTRODUCTION
1.1 IntroductionofTopic
1.2 ObjectivesofStudy

1.3 Scopeofthestudy
1.4 Limitationofthestudy
CHAPTER2 PROFILEOFTHEFIRM
2.1 Companyprofile
2.2 HistoryoftheFirm

2.3 OrganizationalStructure
2.4 Visionandmission
CHAPTER3 PRODUCTOFTHEFIRM
CHAPTER4 INTERPRETATIONOFDATA
4.1 Highlights
4.2 DatasourceandDataCollection
CHAPTER5 RESEARCHMETHODOLOGYPRIMARYD
ATAANDSECONDARYDATA
CHAPTER6 DATAANALYSIS
CHAPTER7 CONCLUSION
CHAPTER8 QUESTIONNAIRE
CHAPTER1 INTRODUCTION
1.1 INTRODUCTION TO TOPIC

IPOstandsforInitialPublicOfferingandmeansthenewofferofsharesfromacompanywhichwaspreviously
unlisted.Thisis done by offeringthose shares to thepublic,whichwere heldbythepromoters or
theprivateinvestorspriortothe IPO. In thecase when
otherinvestorsorPromoterheldthesharesthestakeholdingcomesdowntotheextenttheirsharesareofferedtot
hepublic.Inothercases newshares are issued to the publicandthe
shares,whicharewiththepromotersstaywiththem.Inbothcasestheshareofthepromotersinthetotalcapitalco
mesdown.Forexamplesaythereare100sharesinacompanyand50oftheseareofferedtothepublicinanIPOthe
ninsuchacasethepromoter’s stakein the companycomesdownfrom100% to 50%. Inanothercase
thecompanyissues50additionalsharesto the publicandthe stake ofthe promoter comesdown from100%
to67%.NormallyinanIPOthesharesareissuedatadiscounttowhatisconsideredtheirintrinsicvalueandthat’s
whyinvestorskeenlyawaitIPOsandmakemoneyonmostofthem.

IPOaregenerallypricedatadiscount,whichmeansthatiftheintrinsicvalueofashareisperceivedtobeRs.10
0 the shareswillbe offeredat aprice,whichislesser than Rs.100 sayRs.80
duringtheIPO.WhenthestockactuallylistsinthemarketitwilllistclosertoRs.100.Thedifferencebetweent
hetwopricesisknownasListingGains,whichaninvestormakeswheninvestinginIPOandmakingmoneya
tthelistingoftheIPO.ABullishMarketgivesIPOinvestorsaclearopportunitytoachievelongtermtargetsi
nashorttermphase.
2. OBJECTIVES OF THE STUDY

 TounderstandandevaluatethecomplexIPOprocessinviewofthe
multiplestatuesandregulationsgoverningit.
 TodeciphertheprocessforlistingofIPOsunderthealteringregulatoryenvironment.
 ToknowthemajorfactorsaffectingissueofsharesthroughIPO.
 ToidentifytherealandprobablehurdlesfacedbyIndianCorporatesinmakingInitialPublicOffer(IP
O).
1.3 Scope of the study

ThescopeofthestudyistounderstandtheactualworkingofIPO.TounderstandandevaluatethecomplexIPOprocessin
viewofthemultiplestatusandregulationgoverningit.

ToknowthemajorfactoraffectingissuesofsharesthroughIPO.
LIMITATION OF STUDY
AdvantagesF
undraising:-
The most often citedadvantage of an initialpublicofferingis money.In2016, the
medianproceedsreceivedfroman initialpublicofferingwere $94.5 million,and many
offeringsbringinhundredsofmillionsofdollars.Forexample,in2016,the largestIPO—ZTO Express—
netted$1.4billion.TheproceedsfromanIPOprovideamplejustificationformanycompaniestogopublicevenwit
houtlookingat the
otherbenefits,especiallyconsideringthemanyinvestmentopportunitiesavailablebecauseofthenewcapital.Th
esefundscanbenefitagrowingcompanyincountlessways.
Companiesmayuseaninitialpublicofferingtofinanceresearchanddevelopment,hirenewemployees,build
buildings,reducedebt,fundcapitalexpenditure,acquirenewtechnologyorothercompanies,ortobankrollan
ynumberofotherpossibilities.ThemoneyprovidedbyanIPOissignificant,andcantransformthegrowthtraj
ectoryofacompany.

Exit Opportunity
Every companyhasstakeholders who havecontributed
significantamountsoftime,money,andresourceswiththehopesofcreatingasuccessfulcompany.Thesefound
ersandinvestorsoftengoforyearswithoutseeinganysignificantfinancialreturnontheircontributions.Aniniti
alpublicofferingisasignificantexitopportunityforstakeholders,wherebytheycanpotentiallyreceivemassive
amountsofmoney,or, at the veryleast,liquefythe capitaltheycurrently havetied upin
thecompany.Asstated in
thepreviousparagraph,initialpublicofferingsoftenraisenearly$100million(orevenmore),whichmakesthe
m very attractivetofoundersand investorswho
oftenfeelthatitistimetoreceivefinancialcompensationforyearsof “sweat equity 1.”Itis, however,
importanttonotethatinorderforfounders and investorsto receiveliquidityfroman IPO, theywillhave
toselltheirsharesofthenow-publiccompanyonasecondaryexchange 2(e.g.,NewYorkStockExchange).
ShareholdersdonotimmediatelyreceiveliquidityfromtheproceedsofanIPO .
 Publicity And Credibility
If a companyhopestocontinue to grow, itwillneed increased exposure
topotentialcustomerswhoknowaboutandtrustitsproducts;anIPOcanprovidethisexposureasitthrustsacompan
yintothepublic spotlight.Analystsaroundtheworldreporton every initialpublic
offeringinordertohelptheirclientsknowwhethertoinvest,andmanynewsagenciesbringattentiontodifferentc
ompaniesthataregoingpublic.Notonlydocompaniesreceiveagreatdealofattentionwhentheydecidetogopubli
c,buttheyalsoreceivecredibility.Tocompleteanoffering,acompanymustgothroughintensescrutinytoensure
whattheyarereportingaboutthemselvesiscorrect.Thisscrutiny,combinedwithmanyindividuals’tendenciest
otrustpubliccompaniesmore,can leadtoincreasedcredibilityforacompanyanditsproducts.

Reduced Overall Cost Of Capital

Amajorobstacleforanycompany,butespeciallyyoungerprivatecompanies,istheircostof
capital.BeforeanIPO,companiesoftenhavetopayhigherinterestratestoreceiveloansfrombanksor
giveupownershiptoreceivefundsfrominvestors.AnIPOcanlessenthe
difficultyofreceivingadditionalcapitalsignificantly.BeforeacompanycanevenbeginitsformalIPOpreparationproc
ess,itmustbe audited accordingtoPCAOB3standards;
thisauditisnormallymorescrutinizingthananyprioraudits,andfostersgreaterconfidencethatwhatacompanyisrepo
rtingisaccurate.Thisincreasedassurance
willlikelyresultinlowerinterestratesonloansreceivedfrombanks,asthecompanyisperceivedasbeinglessrisky.Ont
opoflowerinterestrates,onceacompanyispublic,itcanraiseadditionalcapitalthroughsubsequentofferingsonthesto
ckexchange,whichisusuallyeasierthanraisingcapitalthroughaprivatefundinground
 Disadvantages

Additional Regulatory Requirements And Disclosures

Unlikeprivatecompanies,publiccompaniesarerequiredtofiletheirfinancialstatementswiththe
Securitiesand ExchangeCommission(SEC) everyyear. These financialstatements
mustbepreparedinaccordance withUnitedStates
GenerallyAcceptedAccountingPrinciplesandauditedbyacertifiedpublicaccountingfirm.TheseSEC
regulationsarebothburdensomeandcostly.
Reportingacompany’sfinancialpositionpubliclyrequiresthat
companytoestablishmorestringentfinancialcontrols,staffafinancialreportingteamandauditcommittee,implement
quarterlyandyearlyfinancialcloseprocesses,hireanauditfirm,andcompletehundredsofothertasks.
Theseresponsibilitiescostpubliccompaniesmillionsof dollarsevery year and
requirethousandsoflaborhours.For more informationaboutpubliccompanyauditssee our articleAudit
prep fortheBigLeagues.

Market Pressures
Marketpressurescanbeverydifficultforcompanyleadershipwhoareusedtodoingwhattheyfeelisbestfortheco
mpany.Founderstendtohavealong-termview,withavisionofwhattheircompanywilllooklikeyearsfromthe
present andhow itwillimpact the world.Thestockmarket,ontheotherhand,hasaveryshort-term,profit-
drivenview.Onceacompanyispublic,itseverymoveisscrutinizedby
investorsandanalystsaroundtheworld,who aregenerallyinterestedinonequestion:“Willthiscompanymeet
itsquarterlyearningstarget?”Ifa
companymeetsitstarget,itsstockpricewillnormallyincrease;ifnot,itsstockpricewillnormallydecrease.Evenif
leadershipisdoingwhatisbestforthecompanyinthelong-run,failingtomeetthepublic’sshort-
termgoalsmaycausethecompanytolosevalueandtheleadershipmightbereplacedasaresult.Founderswhodon
otliketheideaofbeingconstrainedby short-termpublicgoalsshouldthinkcarefullyaboutgoingpublic.
 a) Potentil Loss Of Control
OnemajordisadvantageofanIPOisfoundersmaylosecontroloftheircompany.Whiletherearewaystoensure
founders retain themajorityof the decision-
makingpowerinthecompany,onceacompanyispublic,theleadershipneedstokeepthepublichappy,evenifothe
rshareholdersdonothavevotingpower.Goingpublic means receivingconsiderableamountsof
moneyfrompublicshareholders.Sinceshareholdershavegiventhecompanysomuchmoney,theyexpectthecom
panytoactintheirbestinterest,evenifitmeansgoinginadirectionthefoundersdislike.Ifshareholdersfeelthecom
panyis notoperatingin away thatwillhelpthemmake money,
theywillforcethecompany,throughshareholdervotesorpubliccriticism,toappointnewleadership.

b) Transaction Costs
Initialpublicofferingsare expensive. Beyondtherecurringexpenses
ofpubliccompanyregulatorycompliance,theIPOtransactionprocesscomesataheftycost.Thelargestcostofap
ublicofferingisunderwriter5fees.Underwriterswilltypicallychargebetween5%and7%ofthegrossproceeds,
whichmeanstheunderwriter’sdiscountcancostupto$7
milliononanaverageIPO.Ontopofunderwriterfees,companieswhoraisean
averageamountofproceeds(approx.
$100million)shouldexpectto spendabout$1.5– 2millioninlegalfees,
$1milliononauditorfees,and$500,000onregistrationandprintingfees.Thetransactioncostswillbeevenhigherifaco
mpanychoosestohireafinancialreportingadvisor 6,orotherspecialtygroups.Seeourarticleonthecostsofgoing
publicformoreinformation.
KEY RISK

 Initsdraftredherringprospectusfiledearliertoday,Paytmhashighlightedanumberofkeyinternalrisk
stoitsbusiness.
 Risksincludedependenceonitsmerchantandconsumerbaseaswellasamassiveshareofpayments
servicestogeneraterevenue.
 Thecompanyhasstatedthatithasincurredoperationallossesoverthepastthreefiscalsandexpectsto
continueincurringlossesintheforeseeablefuture.

 Extremelycompetitivemarketswithcontinuouslyevolvingtechnology
 Failuretoattractmerchants&volumescanadverselyaffectbusiness
 Dependencyonpaymentservicesformajorityofrevenue
CHAPTER2 PROFILE OF THE FIRM
 2.1 ORGANISATION PROFILE

Paras offers a wide range of Products & Solutions for Defence & Space Applications. With focus on
Defence&SpaceSectorwehavefiveverticalsofourbusiness,namelyDefence&SpaceOptics,DefenceElectronics,Heav
yEngineering,ElectromagneticPulseProtectionSolutionsandNicheTechnologies.

Withover40+yearsofsustainedbusinessgrowthintheareaofDefence&SpaceEngineering,Weareinvolvedin
Technologies for Rocket & Missiles, Space & Space Research, Naval Systems, Land &
ArmouredVehicles,ElectronicWarfare&Surveillance,ElectroMagneticShieldingtonameafew.

Parashasstate-of-the-
artmanufacturingsetupwith400+workforceandhavingcapabilitiestoofferaTurnkeySolutionfromDesigntoCommissio
ningofSmalltoLargeSystems.OurfocusonTechnologyDevelopment &R&D distinguishes us as a True IDDM
company in the Indian Defence Industry. We have
avibrantteamworkingondevelopingfuturetechnologiesandprovidingcuttingedgesolutionsforourCustomers.

QualityProducts,DeliveredattheRightTimeandatthemostCompetitivePriceisourbusinessstrategy.Thishasm
adeusasoneofthemostdependablepartnersofourCustomers.StrongFundamentals,ImpeccableBusinessEthics&Custo
merCentricApproacharethepillarsofourbusinessasweaimtobecomethemostsignificantIndian Company
in the Defence & Space Sector.
Mumbai, Paras Defenceand Space Technologiesdesigns, develops,manufactures and tests products
relatedtodefence and space engineering.Incorporatedin 2009, it has emerged as a majorplayerin all
productsegments,including defenceelectronics, defence optics, EMP (electromagneticpulse) hardeningand
heavyengineering.Unlikeitscompetitors, it is involvedin manufacturing products in all product segments.It is
thesolemanufacturerofcritical-
imagingsystemsinIndia.Besides,itistheonlyplayerinvolvedinEMPprotectiononaturnkeybasis.Underthis,itbuilds
machinesandsellsthemasawholeratherthaninparts.

The company's product portfolio comprises defence and space optics (infrared lenses, large-size
opticsandoptical domes),defenceelectronics(rugged control system and rugged displays for
defenceapplications),EMPsolutions(EMPracks,EMPcabinets,shieldeddoorsandonsiteinstallation)andheavye
ngineering(flow-formedtubes, titanium structures and heavy dynamicstructures with built-in optimisation).
The companygeneratesaround80percentofitsrevenuesfromdefence-relatedproductsand20percentfromspace-
relatedproducts.
However, since the company has a wide range of products, the contribution of these products to the
totalrevenuekeeps changing. Its optics segment generated 45.3 per cent of revenue, heavy engineering generated
26.4percentanddefenceelectronicsandEMPsolutionscombinedlygenerated28.3percentofthetotalrevenueinFY21.
Exportsaccountedforaround15percentoftherevenueanditisexpectedtogrowinthefuture.

Indiahas beenwitnessinggeopoliticaltensionsacrossits borders

withChina,PakistanandAfghanistan.Thishasresultedinthegovernmentinitiatingthemodernisationofdefenceequipm
entfasterthaneverbefore.Also,inlinewiththe Atmanirbhar Bharat programme,the governmentis reducing its
dependence on imported
defencematerialsandhasalreadyallocated$9.48billionfordomesticprocurement,whichwillhelpthecompany
inthefuture.
 Competitive strengths
1) It is one of the leading IDDM (indigenously designed, developed
andmanufactured)companies.IDDMcompaniestakecareofeverythingin-
house,rightfromdesigningproductstodeliveringproductstocustomerswithoutanyo
utsourcing.
2) ThecompanyhasauniquenanotechnologymachiningcentreinNaviMumbai,whichmakesit a
leading provider of optics. Also, it is the only Indian company to have
designcapabilityforspace-opticsandoptomechanicalassemblies.
3) Itistheonlycompanytoprovideallfourmajorproducts,comprisingdefenceelectronics,defence
optics,EMPhardeningandheavy-engineeringcapabilitiesintheindustry.
4) The companyalreadyhad anorder book forRs 305 crore for variousproducts asonJune
30,2021.5)Givengrowinggeopoliticaltensions,theAtmanirbharBharatmoveinthedefencesectoran
dtheincreasinginterestinspaceexploration,thecompany'sfuturepotentialseemsbright.

Paras Defence and Space IPO Details

IPOOpeningDate Sep21,2021

IPOClosingDate Sep23,2021

IssueType BookBuiltIssueIPO

FaceValue ₹10perequityshare

IPOPrice ₹165to₹175perequityshare

MarketLot 85Shares

MinOrderQuantity 85Shares

ListingAt BSE,NSE

[.]EqSharesof₹10(aggregatingupto₹170.78C
IssueSize r)

[.]EqSharesof₹10(aggregatingupt
FreshIssue o₹140.60Cr)

1,724,490EqSharesof₹10
OfferforSale (aggregatingupto₹30.18Cr)
 2.2 History

Parashasstate-of-the-
artmanufacturingsetupwith400+workforceandhavingcapabilitiestoofferaTurnkeySolutionfromDes
igntoCommissioningofSmalltoLargeSystems.OurfocusonTechnology Development & R&D
distinguishes us as a True IDDM company in theIndianDefenceIndustry.

TheCompanywas incorporatedasParasFlowFormEngineeringLimitedon16June2009
TheCompanyreceivedthecertificateforcommencementofbusinesson24July2009.Subsequentlythe
nameoftheCompanywas changed to Paras Flowform EngineeringLimited pursuant to a resolution passed
by theShareholders in anextraordinary general meetingheld on 22 September2009 and a fresh certificate
ofincorporationdated25September2009wasissuedbytheRoC.

FurtherthenameoftheCompanywaschangedtoParasDefenceandSpaceTechnologiesLimitedpursuanttoaresolution
passed by the Shareholdersin an extraordinary general meeting heldon 02 December2015and a freshcertificateof
incorporation dated 29 January 2016.The company is involvedindesign
developmentmanufacturingtesting&commissioningofproductssystemsandsolutionsforDefence&SpaceApplicat
ions.TheBoardofDirectorsof the Company at its meeting held on 12th January 2018
consideredandapprovedtheschemeofamalgamationofitsassociatecompanynamedConceptShapersandElectroni
csPrivateLimitedand its subsidiary companynamedMechvac India Limitedwith Paras Defence and
SpaceTechnologiesLimited.

SubsequentlytheshareholdersoftheerstwhileMechvac IndiaLimitedwereallotted100equitysharesfullypaidup
ofRs10/- each of Paras Defenceand Space TechnologiesLimitedfor every 784 shares of Mechvac
IndiaLimitedandthe shareholders of the erstwhile ConceptShapers and ElectronicsPrivate Limited were allotted
100equity sharesfully paid up of Rs 10/- each of Paras Defence and Space TechnologiesLimitedfor every
1535equitysharesofConceptShapersandElectronicsPrivateLimited.
SubsequentlytheshareholdersoftheerstwhileMechvac IndiaLimitedwereallotted100equitysharesfullypaidup
ofRs10/- each of Paras Defenceand Space TechnologiesLimitedfor every 784 shares of
MechvacIndiaLimitedandthe shareholders of the erstwhile ConceptShapers and ElectronicsPrivate Limited were
allotted 100equity sharesfully paid up of Rs 10/- each of Paras Defence and Space TechnologiesLimitedfor every
1535equity shares ofConceptShapers and Electronics Private Limited.Pursuant to the scheme of
amalgamation572534 equity shareswere allotted to the shareholders of the erstwhile Mechvac India Limited
andConceptShapersandElectronicsPrivateLimitedon20August2018.

The shares pursuant to the scheme of amalgamation were allotted vide allotment dated 20 August 2018
andthecross holdings stand cancelled.During the FY2019 the company has allotted 100000 equity shares of Rs
10/-wereallottedonconversionof1000000Unsecured0%CompulsorilyConvertibleDebenturesofRs100/-eachon
03rd November2018.As on 31st March 2019 the Company had 5 subsidiaries out of which 4
areIndiansubsidiariesand1overseassubsidiary.DuringtheFY2020thecompanyhasallotted22730136equitysharesofRs1
0eachbywayof issuanceof bonussharesin
theratioof4:1.Alsoon13August2020thecompanyhasallotted29990000.01%OptionallyConvertiblePreferenceShareso
fRs100eachissuedtoMDAVFthroughitsinvestmentManagerIDBICapitalMarkets&SecuritiesLimited.Ason31stMarc
h2020theCompanyhad
4subsidiariesoutofwhich3areIndiansubsidiariesand1overseassubsidiary.

The outbreak of COVID-19 virus continues to spread across the globe including Indiaand to
controltheGovernment authorities had been forced to commence nationwide lockdown. The operations of
theGroupremainedcompletelyshutdown in the month of April 2020 and thereafteroperationshave been
startedslowly asper the instruction of theState Government/Local authorities.During the FY2021the
company hasallotted1440000equitysharesofRs10eachatapremiumofRs115pershareonprivateplacement.

Thecompanycameout
withanRs171crorepublicissuecomprisesafreshissueofRs140.60crore.TheIPOshareshavebeenallottedatth
epriceofRs175pershareandgotlistedontheBSELtdandNationalStockExchangeofIndiaLtd(NSE)on01Octo
ber2021.
 2.3 ORGANIZTIONAL STRUCTURE

WithfocusonDefence&SpaceSectorwehavefiveverticalsofour
business,namelyDefence&SpaceOptics,DefenceElectronics,HeavyEngineering,ElectromagneticPulseProtectionSolutionsandNicheTechnologies.
ParasoffersawiderangeofProducts&SolutionsforDefence&SpaceApplications.WithfocusonDefence&SpaceS
ector we have five verticalsof our business,namelyDefence&Space
Optics,DefenceElectronics,HeavyEngineering,ElectromagneticPulseProtectionSolutionsandNicheTechnol
ogies.

Withover40+yearsofsustainedbusinessgrowthintheareaofDefence&SpaceEngineering,WeareinvolvedinTechn
ologies for Rocket & Missiles, Space & Space Research, Naval Systems, Land &
ArmouredVehicles,ElectronicWarfare&Surveillance,ElectroMagneticShieldingtonameafew.

Paras has state-of-the-art manufacturing setup with 400+ workforce and having capabilities to offer
aTurnkeySolutionfrom Designto Commissioningof Small to Large Systems.Ourfocus
onTechnologyDevelopment&R&DdistinguishesusasaTrueIDDMcompanyintheIndianDefenceIndustry.Wehaveavib
rantteamworkingondevelopingfuturetechnologiesandprovidingcuttingedgesolutionsforourCustomers.

QualityProducts,DeliveredattheRightTimeandatthemostCompetitivePriceisourbusinessstrategy.Thishasmadeu
sasoneofthemostdependablepartnersofourCustomers.StrongFundamentals,ImpeccableBusinessEthics&
Customer Centric Approach are the pillars of our business as we aim to become
themostsignificantIndianCompanyintheDefence&SpaceSector.
 2.4 Vision and Mission

OurfocusonTechnologyDevelopment&R&DdistinguishesusasaTrueIDDMcompanyintheIndianDefenceIn
dustry.........StrongFundamentals,ImpeccableBusinessEthics&CustomerCentricApproacharethepillarsof
ourbusinessasweaimtobecomethemostsignificantIndianCompanyintheDefence&SpaceSector.

Intellectual Property Rights is an inevitable tool for today’s globalized economy.Fostering innovationis oneofthe
sustainable developmentgoals set by the Governmentof India. “An Indiawhere
IntellectualPropertystimulatescreativityandinnovationforthebenefitofall”is
thevisionofourNationalIPRPolicy.SeveralinitiativeshavealreadyproventofosterinnovationliketheMakeinIndia,St
artupIndia,DigitalIndiaandSkillIndia.TheAtalInnovationMissionnurturestheinnovativeenergiesacrossthecountry
in schools anduniversities. Under the IPR policy, the cell for IPR Promotion and Management, CIPAMhas been
tasked tofacilitate creation and commercializationof IP assets in collaboration with the Office of
theControllerGeneralofPatents,DesignsandTrademarks.

ThefilingsforIPrightshaveconsiderablyincreasedandtheIntellectualPropertyOfficesarealsogettingrevampedintermsof
capacitybuilding. More Examiners have been recruited and trained in Patents. The Patent Office started
functioningasInternationalSearchingandExaminingAuthoritysince
October2013.Itisencouragingtonotethatmoreapplicantsarenowchoosing IPO for international search. Applicants registered
as Start-ups and those who have chosenIndian Patent Office asISA or IPEA in the corresponding international application
can avail of the facility of ExpeditedExamination.To
ensurequalityinallouroperations,adedicatedQualityAssuranceDivisionhasbeensetupinthePatentOffice.

CHAPTER-3 PRODUCT OF THE FIRM

ThelistingforParasDefence&SpaceTechnologieswasevenbetter.
Mumbai,Paras Defence and Space
Technologiesdesigns,develops,manufacturesandtestsproductsrelatedtodefenceandspaceen
gineering.Incorporatedin2009,it
hasemergedasamajorplayerinallproductsegments,includingdefenceelectronics,defence
optics,EMP(electromagneticpulse)hardeningandheavyengineering.Unlikeitscompetitors
,itisinvolvedinmanufacturingproductsinallproductsegments.Itisthesolemanufacturerofcri
tical-
imagingsystemsinIndia.Besides,itistheonlyplayerinvolvedinEMPprotectiononaturnkeyba
sis.Underthis,itbuildsmachinesandsellsthemasawholeratherthaninparts.
CHPTER4 INTERPRETATION OF DATA
 4.1 Paras Defence Investment Rationale

ParasDefencehasabroadportfolioofproductsandsolutionsfordefenceandspaceapplications.Thecompanyisoneoftheveryfewprod
ucersofopticsforspace anddefenceapplicationsinIndia.ThegovernmentofIndia's'AtmanirbharBharat'and 'Make in India'
initiatives shouldpush the topline growth going ahead. Apart from it, Paras Defence has robust
researchanddevelopmentcapabilitiesandasharpfocusoninnovation.ItalsohasasolidcustomerbasewithcompanieslikeDefenceR&
D Organization, Bharat Dynamics Ltd(NS: BARA ), Bharat Electronics (NS: BAJE ), Hindustan Aeronautics, andCochin
Shipyard. Other key strengths includeexperienced management. Note that Paras Defence does not have any listedindustry
peers in India. Among the
significantheadwinds,youshouldnotethatthecompanyishighlydependentonCentralGovernmentanditsalliedentities'projects.Th
eparasdefense IPO,greymarketpremium,stoodatRs200today,almost120%overitsissueprice.

4.2 Financials

initialpublicoffer(IPO)windowforsubscriptionisopeningtodayonSeptember21andwillcloseonSeptember
23. ThecompanyiseyeingRs170.78 crore onTuesday. Tentatively,thecompanyisgoingto
makethemarketdebutonOctober1.TheParasDefenceIPOhasapricebandofRs165toRs175perequityshare.Italsohasa
facevalueofRs10perequityshare.SharadVirjiShahandMunjalSharadShaharethecompanypromotersfortheParasDe
fenceIPO.

The fresh issue aggregates up to Rs 140.60 crore, while the OFS comes up to Rs 30.18 crore with a
totalof1,724,490 equityshares. This companyis well known for designing,manufacturingand eventesting a
varietyofproductsandsolutionsthatcomeundertheambitofdefenceandspaceengineering.Thecompanyisintomanufac
turingofDefenceandSpaceOptics,DefenceElectronics,HeavyEngineering,ElectromagneticPulseProtectionSolution
s,aswellasNicheTechnologies.ThiscompanyisoneoftheveryfewIndiancompanieswiththe design capacity for space-
optics and optomechanicalassemblies.Itisalsooneof
theleadingprovidersofopticsforvariousIndiandefenceandspaceprogrammes.
The reasons behind going public are many. The proceeds will be utilised for funding the capital
expenditure.Aportionofitwillalsogotowardstherepaymentandprepaymentofalloraportionofcertainborrowings/
outstandingloanfacilitiesthatwereavailedbythecompany.Therestofthefundswillgotowardsgeneralcorporatepurposes.

Asfarasthe lotsize isconcerned,theParasDefenceIPOhasaminimum

lotsizeof85sharesandanapplicationamountofRs14,875.Themaximumshares1105Sharesfor13lotRs1,93,375for13lot.
Intermsofsubscription,Retail-
individualinvestors(RIIs)canapplyforupto13lotsatthehigherend.Thequalifiedinstitutional buyers (QIBs) have a
50per centreservation. The non-institutional investors (NIIs) have a
15percentreservation.TheRIIshaveareservedportionof35percentfortheIPO.
 4.3 Parace Defence and Space IPO Shere price

Asofnow,the17,24,490equitysharesarebeingofferedataRs.10facevalue.
 4. Paras Defence and space IPO issue size

AccordingtotheDHRP,theoffermentionsafreshissueofsharesworthRs140.60crorewithupto
1,724,490 equity shares up for sale. The company is also considering a pre-
IPOplacementofsharesworthRs34.402crores.

5. IPO Listing

Currently listed as a book building issue, the equity shares of Paras Defence and Space Technologies
Ltd.wouldbelistedonBombayStockExchange(BSE)NationalStockExchangeofIndiaLimited(NSE).
 4.6 Objective

The company’splan is to utilize the proceedsof the fresh issue for fundingcapital
expenditurerequirements,supportingincrementalworkingcapitalneedsandtherepaymentorprepaymentofloansav
ailedbythecompany.

Ifyoualreadyhaveanexistingaccount,youcanstartyouronlinetradingandinvestintheupcomingIPO's.

WithaplethoraofcompaniescomingforwardwiththeirownIPOsinquicksuccession,youcankeepatrackofalltheup
comingIPOsbyregularlyfollowingourIPOcalendar.
Chapter5 Research Methodology
 Research Methodology

Researchmethodologyisthespecificproceduresortechniquesusedtoidentify,select,process,andanalyzeinformatio
naboutatopic.Inaresearchpaper,themethodologysectionallowsthereadertocriticallyevaluateastudy'soverallvalid
ityandreliability.Themethodologysectionanswerstwomainquestions:Howwasthedatacollectedorgenerated?
Howwasitanalyzed?

Definition

Research methodology is a way to systematically solve the research problem it may

beunderstoodasascienceofstudyhowresearchisdonesystematicallyandscientificallyresearchersnoto
nly needtoknow how to develop certain test how
toapplycertainresearchtechniquebutalsotheyneedtoknowwhichofthismethodortechniquesarerelev
antandwhicharenotandwhatwouldbeandwhy.

Methods of data collection

Quantitative and qualitative Data Collection methods the quantitative Data

CollectionmethodsrarelyonrandomsamplingandstructuredDataCollectioninstrumentthatitdeserves
anexperimentin tobe determined response that give the produce results that are easy to
summarisedcompareandgeneralizedthemethodofDataCollectionincludestwotypeofstudiessuchaspr
imarydataandsecondarydata
 1. Primary data

 Primarydataisatypeof

datathatiscollectedbyresearchersdirectlyfrommainsourcesthroughinterviews,surveys
,experiments,etc.Primarydataareusuallycollectedfromthesource—
wherethedataoriginallyoriginatesfromandare
regardedasthebestkindofdatainresearch.

 Thesourcesofprimarydataareusuallychosenandtailoredspecificallytomeetthedema
ndsorrequirementsofaparticularresearch.Also,beforechoosingadatacollectionsour
ce,thingsliketheaimoftheresearchandtargetpopulationneedtobeidentified.Forexam
ple,whendoingamarketsurvey,thegoalofthe
surveyandthesamplepopulationneedtobeidentifiedfirst.

 Thisiswhatwilldeterminewhatdatacollectionsourcewillbemostsuitableanofflin
esurveywillbemoresuitableforapopulationlivinginremoteareas
withoutinternetconnectioncomparedtoonlinesurveys.

Sources of Primary Data

 Stock Market Broker.

IhavethecontactwithlocalbrokerfromwhichI
havecollectedinformationofparasDefencean
dspace'sIPO
 5.2Secondary data

 Secondarydataisthedatathathasalreadybeencollectedthroughprimarysourcesandmadereadilyava
ilableforresearcherstousefortheirownresearch.Itisatypeofdatathathas
alreadybeencollectedinthepast.
 Aresearchermayhavecollectedthedataforaparticularproject,thenmadeitavailabletobeusedbyanot
herresearcher.Thedatamayalsohavebeencollectedforgeneralusewithno
specificresearchpurposelikeinthecaseofthenationalcensus.
 Adataclassifiedassecondaryforaparticularresearchmaybesaidtobeprimaryforanotherresearch.
Thisisthecasewhenadataisbeingreused,makingitaprimarydataforthefirstresearchandsecondarydatafor
thesecondresearchitisbeingusedfor.

Sources of Secondary Data

Sourcesofsecondarydataincludebooks,personalsources,journal,newspaper,website,governmentrecordetc.Seco
ndarydataareknowntobereadilyavailablecomparedtothatofprimarydata.Itrequiresverylittleresearchandneedfor
manpowertousethesesources.

Withtheadventofelectronicmediaandtheinternet,secondarydatasourceshavebecomemoreeasilyaccessi
ble.Someofthesesourcesarehighlightedbelow.

 Books

Booksareoneofthemosttraditionalwaysofcollectingdata.Today,therearebooksavailableforalltopicsyouca
n thinkof.Whencarryingoutresearch, allyouhave to do is lookfor a book on
thetopicbeingresearchedon,thenselectfromtheavailablerepositoryofbooksinthatarea.
Books,whencarefullychosenareanauthenticsourceofauthenticdataandcanbeusefulinpreparingaliteraturer
eview.

 Published Sources

Thereareavarietyofpublishedsourcesavailablefordifferentresearchtopics.Theauthenticityofthedatage
neratedfromthesesourcesdependsmajorlyonthewriterandpublishingcompany.

Publishedsourcesmaybeprintedorelectronicasthecasemaybe.Theymaybepaidorfreedependingon
thewriterandpublishingcompany'sdecision.
  Unpublished Personal Sources

Thismaynotbereadilyavailableandeasilyaccessiblecomparedtothepublishedsources.Theyonlybecomeaccessible
iftheresearchershareswithanotherresearcherwhoisnotallowedtoshareitwithathirdparty.

Forexample,theproductmanagementteamofanorganizationmayneeddataoncustomerfeedbacktoassesswh
atcustomersthinkabouttheirproductandimprovementsuggestions.Theywillneedtocollectthedatafromthec
ustomerservicedepartment,whichprimarilycollectedthedatatoimprovecustomerservice.

 Journal
Journalsaregraduallybecomingmoreimportantthanbooksthesedayswhendatacollectionisconcerned.T
hisisbecausejournalsareupdatedregularlywithnewpublicationsonaperiodicbasis,thereforegivingtodat
einformation.

Also,journalsareusuallymorespecificwhenitcomestoresearch.Forexample,wecanhaveajournalon,"Secondaryd
atacollectionforquantitativedata"whileabookwillsimplybetitled,"Secondarydatacollection".

 News papers
Inmostcases,theinformationpassedthroughanewspaperisusuallyveryreliable.Hence,makingitoneof
themostauthenticsourcesofcollectingsecondarydata

The kindof data commonlysharedinnewspapers

isusuallymorepolitical,economic,andeducationalthanscientific.Therefore,newspapersmaynotbethebes
tsourceforscientificdatacollection.

 Websites

The informationsharedon websites aremostlynotregulatedandas

suchmaynotbetrustedcomparedtoothersources.However,therearesomeregulatedwebsitesthatonlyshare
authenticdataandcanbetrustedbyresearchers.

Mostofthesewebsitesareusuallygovernmentwebsitesorprivateorganizationsthatarepaid,datacollectors.

 Blogs

Blogs are one of themost commononlinesourcesfordataand may even be

lessauthenticthanwebsites.Thesedays,practicallyeveryoneownsablogandalotofpeopleusetheseblogstodr
ivetraffictotheirwebsiteormakemoneythroughpaidads.
Therefore,theycannotalwaysbetrusted.Forexample,abloggermaywritegoodthingsaboutaproductbecauseheorsh
ewaspaidtodosobythemanufacturereventhoughthesethingsarenottrue.

 Government Records
Governmentrecordsareaveryimportantandauthenticsourceofsecondarydata.Theycontaininformationusefulinma
rketing,management,humanities,andsocialscienceresearch.

Someoftheserecordsinclude;censusdata,healthrecords,educationinstituterecords,etc.Theyareusuallycollectedto
aidproperplanning,allocationoffunds,andprioritizingofprojects.

 Podcasts
Podcastsaregraduallybecomingverycommonthesedays,andalotofpeoplelistentothemasanalternativetora
dio.Theyaremoreorlesslikeonlineradiostationsandaregeneratingincreasingpopularity.
CHAPTER6 DATA ANALYSIS
 6.1 Data Analysis

Company’s Promoter

SharadVirjiShahandMunjalSharadShaharethecompanypromoters.
6.2 Company Financials:

SummaryoffinancialInformation(RestatedConsolidated)

Objective Of Paras Defence IPO

Fundcapitalexpenditurerequirements.
Fundingincrementalworkingcapitalrequirements.
Repaymentorprepaymentofalloraportionofcertainborrowings/
outstandingloanfacilitiesavailedbythecompany.
GeneralCorporatepurposes.
 Paras Defence IPO Details

IPOOpeningDate Sep21,2021

IPOClosingDate Sep23,2021

IssueType BookBuiltIssueIPO

FaceValue ₹10perequityshare

₹165to₹175perequityshar
IPOPrice
e

MarketLot 85Shares

MinOrderQuantity 85Shares

ListingAt BSE,NSE

[.]EqSharesof
IssueSize ₹10(aggregatingupto₹170.7
8Cr)

[.]EqSharesof
FreshIssue ₹10(aggregatingupto₹140.60
Cr)

[.]EqSharesof
OfferforSale ₹10(aggregatingupto₹30.18Cr

Paras Defence IPO Tentative Timetable

TheparasDefenceandspaceTechnologies IPOopenDatesissep21,2021,andtheclosedateis
sep23,2021.TheissuemaylistonOct1,2021.
IPOOpenDate Sep21,2021

IPOCloseDate Sep23,2021

BasisofAllotmentDate Sep28,2021
InitiationofRefunds Sep29,2021

CreditofSharestoDematAccount Sep30,2021

IPOListingDate Oct1,2021
 Paras Defence IPO Lot Size

ParasDefenceIPOMinimumMarketlotis1lotwith85shereswith14,875applicationamount.Theretailinvestors
canapplyupto13lotswith1105Sharesor193,375amount.

Application Lots Shares Amount(Cut-off)

Minimum 1 85 ₹14,875

Maximum 13 1105 ₹193,375

Paras Defence IPO Review

Paras DefenceandSpace TechnologiesLtd.(PDSTL) isan
Indianprivatesectorcompanyengagedindesigning,developing,manufacturingand testing a widerange of
defence andspaceengineeringproducts
andsolutions.Itisoneoftheleading'IndigenouslyDesignedDevelopedandManufactured'("IDDM")categorypriv
atesectorcompaniesinIndia,whichcaterstofourmajorsegmentsoftheIndiandefencesectori.e.defence and space
optics,defenceelectronics,electro-magneticpulse("EMP")protectionsolutionandheavyengineering.
(SourceF&SReport).PDSTLisalsothesoleIndiansupplierofcriticalimagingcomponentssuchaslargesizeoptics
anddiffractivegratingsfor spaceapplicationsinIndia(Source F&S Report). Itsgoalis tobecomeoneof
theleadingglobalcompaniesforopticsforthedefenceandspacesector.
 Paras Defence IPO Listing Date

ListingDate 21September2021

IPOSize 170.78cr

NSESymbol ParasDefence

ListingIn BSE,NSE

IssueSize 170.78cr

IPOPrice ₹165-175perequityshare

FaceValue ₹10Rs.Equityshare
 Conclusion
No doubt, spending on the defenceand aerospace segmentby the governmenthasbeenon the rise and
thisaugurswell for this company. However, based on its financial data the issue is fully priced discounting
neartermprospects.AstheoverallIPOsizeisbelowRs.250cr.itsinitiallistingwilltakeplaceinT2Tgrouplimitingspeculat
ivemovements.Hencecashsurplusinvestorsmayconsiderinvestinginthisissueforthelongterm.
CHAPTER7 QUESTIONNAIRE
Q1.Who owns ParasDefence?
Q2.Is Paras Defence
amonopoly?
Q3.WhatisParasDefenceIPO?
Q4.WhatisGMPinstockmarket?
Q5.What doesParasDefenceandspacedo?
Q6.WhoistheownerofParasDefenceandspacetechnology?
Q7.WhenwasparasDefenceestablished?
Q8.ShouldwebuyParasafterlisting?
Q9.WhatistheGREYmarketpremiumofParasDefence?
Q10.WhichengineeringcompanyhasafocusonDefenceandspace?
Q11.CanwepurchaseParasDefenceshares
?
 CHAPTER-8 BILOGRAPHY

www.parasdefence.comhttps://
WWW.bseindia.comhttps://
WWW.news18.comhttps://
zoplehai.axisdirect.imhittps://
economictimes.indiatimes.com