A PROJECT REPORT ON

IPO OF PARAS DEFENCE AND SPACE TECNOLOGIES

LIMITED

A Project Submitted to
University of Mumbai for partial
completion of the degree of

Master in Commerce

Under the Faculty of Commerce

By
ROHIT TANAJI GOILKAR

Under the Guidance of

CA KUNAL S. CHANDIKA

Keraleeya Samajam (Regd.) Dombivli’s

MODEL COLLEGE

December, 2021
 A PROJECT REPORT ON
IPO OF PARAS DEFENCE AND SPACE TECNOLOGIES
LIMITED

A Project Submitted to
University of Mumbai for partial
completion of the degree of

Master in Commerce

Under the Faculty of Commerce

By
ROHIT TANAJI GOILKAR

Under the Guidance of

CA KUNAL S. CHANDIKA

Keraleeya Samajam (Regd.) Dombivli’s

MODEL COLLEGE

December, 2021
 Index

Sr. Chapter Page no.

no.
1 Introduction 7-31
2 Data analysis, interpretation & 32-44
preparation
3 Findings, suggestion & conclusions 45-53
4 Appendix 54
5 Bibliography/ weblography 55
 Keraleeya Samajam (Regd.) Dombivli’s
MODEL COLLEGE

Certificate

This is to certify that Mr ROHIT TANAJI GOILKAR has worked and duly
completed his Project Work for the degree of Master in Commerce under the
Faculty of Commerce in the subject of Banking and Finance and his project is
entitled, “A Project Report On IPO Of Paras Defence and Space Technologies
Limited” under my supervision. I further certify that the entire work has been
done by the learner under my guidance and that no part of it has been
submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by her/his personal findings and
investigations.

Name and Signature of

Guiding Teacher

Date of submission:
 Declaration by learner

I the undersigned Mr. ROHIT TANAJI GOILKAR here by, declare

that the work embodied in this project work titled “A
Project Report On IPO Of Paras Defence and Space Technologies
Limited”, forms my own contribution to the research work carried out
under the guidance of CA KUNAL S. CHANDIKA is a result of my
own research work and has not been previously submitted to any other
University for any other Degree/ Diploma to this or any other
University.

Wherever reference has been made to previous works of others, it has

been clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

Name and Signature of the

learner

Certified by
Name and signature of the Guiding Teacher

5
 Acknowledgment

To list who all have helped me is difficult because they are so

numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels

and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving

me chance to do this project.

I would like to thank my Principal, Dr. CA Ravindra P.

Bambardekar for providing the necessary facilities required for
completion of this project.

I take this opportunity to thank our Coordinator Thrivikraman M.

V., for her moral support and guidance.

I would also like to express my sincere gratitude towards my project

guide CA Kunal S. Chandika whose guidance and care made the
project successful.

I would like to thank my College Library, for having provided

various reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.

6
 INTRODUCTION

INITIAL PUBLIC OFFERING (IPO)

Initial public offering (IPO), also referred to simply as a "public offering", is when a
Company issues common stock or shares to the public for the first time. They are often issued
by smaller, younger companies seeking capital to expand, but can also be done by large
privately owned companies looking to become publicly traded. In an IPO, the issuer may
obtain the assistance of an underwriting firm, which helps it determine what type of security
to issue (common or preferred), best offering price and time to bring it to market.

Initial Public Offering (IPO) in India means the selling of the shares of a company, for the
first time, to the public in the country’s capital markets. This is done by giving to the public,
shares that are either owned by the promoters of the company or by issuing new shares.
During an Initial Public Offer (IPO) the shares are given to the public at a discount on the
intrinsic value of the shares and this is the reason that the investors buy shares during the
Initial Public Offering (IPO) in order to make profits for themselves.

IPO in India is done through various methods like book building method, fixed price method,
or a mixture of both. The method of book building has been introduced in the country in 1999
and it helps the company to find out the demand and price of its shares. A merchant banker is
nominated as a book runner by the Issuer of the IPO.

The company that is issuing the Initial Public Offering (IPO) decides the number of shares
that it will issue and also fixes the price band of the shares. All these information are
mentioned in the company’s red herring prospectus. During the company's Initial Public
Offering (IPO) in India, an electronic book is opened for at least five days. During this period
of time, bidding takes place which means that people who are interested in buying the shares
of the Company makes an offer within the fixed price band.

Once the book building is closed then the issuer as well as the book runner of the Initial
Public Offering (IPO) evaluate the offers and then determine a fixed price. The offers for
shares that fall below the fixed price are rejected. The successful bidders are then allotted the
shares IPO’s can be a risky investment. For the individual investor, it is tough to predict what
the stock or shares will do on its initial day of trading and in the near future since there is

7
often little historical data with which to analyse the company. Also, most IPO’s are of
companies going through a transitory growth period, and they are therefore subject to
additional uncertainty regarding their future value.

KEY TAKEWAYS

 Initial public offering (IPO) is defined as the debut of a private company on the stock
exchange by issuing its shares for the first time to the general public.
 The shares are first issued in the primary market. Thereafter, they get listed in the
secondary market which contains stock exchanges and over-the-counter (OTC)
market. Once listed, the newly listed shares start trading amongst investors.
 For holding an IPO, the company typically has to file the S-1 Registration Statement
with the SEC in order to comply with the authority’s requirements.
 It is a kind of exit strategy adopted by the angel investors, venture capitalists and
other early-stage investors of a business to make high returns on their investment.
 The general public make gains from IPOs by acquiring shares at a low cost and
selling them to other investors when the price rises

.Why IPOs?

 For Funding Needs

 Funding Capital Requirements for Organic Growth
 Expansion through Projects
 Diversification
 Funding Global Requirements
 Funding Joint Venture and Collaborations needs
 Funding Infrastructure Requirements, Marketing Initiatives and Distribution
Channels
 Financing Working Capital Requirements
 Funding General Corporate Purposes
 Investing in businesses through other companies
 Repaying debt to strengthen the Balance Sheet
 Meeting Issue Expenses

8
 For Non-funding Needs
 Enhancing Corporate Stature
 Retention and incentive for Employees through stock options
 Provide liquidity to shareholder

Types of IPO

To understand IPO meaning in stock markets, you have to understand the types of IPOs.
There are two types of IPO:-

1. Fixed Price Offering:

Here, the company announces the full price of its IPO, beforehand. It means investors
taking part in the fixed price offering IPO have to pay the full amount while making
applications

2. Book Building Offering:

Here, the company offers its stock price at a 20% band and asks the investors to place
their bids for deciding the final price of its stocks. The investors, in turn, are required
to specify the amount that they are willing to pay along with the number of shares
they want to purchase. The lowest price provided by investors is called Floor Price,
while the highest bidding price is known as the Cap Price. You must understand that
in this type of IPO exercise, the price-determination of a company’s stock is directly
contingent upon the bidding process of investors.

REASONS FOR LISTING

When a company lists its shares on a public exchange, it will almost invariably look
to issue additional new shares in order to raise extra capital at the same time. The
money paid by investors for the newly-issued shares goes directly to the company (in
contrast to a later trade of shares on the exchange, where the money passes between
investors).

9
An IPO, therefore, allows accompany to tap a wide pool of stock market investors to provide
it with large volumes of capital for future growth. The company is never required to repay
capital, but instead the new shareholders have a right to future profits distributed by the
company and the right to a capital distribution in case of dissolution. the existing
shareholders will see their shareholdings diluted as a proportion of the company's shares.
However, they hope that the capital investment will make their shareholdings more valuable
in absolute terms.

REASON FOR LISTING IPOs:

1. Increase in the capital:

An IPO allows a company to raise funds for utilizing in various corporate operational
purposes like acquisitions, mergers, working capital, research and development,
expanding plant and equipment and marketing.

2. Liquidity:

The shares once traded have an assigned market value and can be resold. This is
extremely helpful as the company provides the employees with stock incentive
packages and the investors are provided with the option of trading their shares for a
price.

3. Valuation:

The public trading of the shares determines a value for the company and sets a
standard. This works in favor of the company as it is helpful in case the company is
looking for acquisition or merger. It also provides the shareholders of the company with
the present value of the shares.

4. Increased wealth:

The founders of the companies have an affinity towards IPO as it can increase the
wealth of the company, without dividing the authority as in case of partnership.

10
OBJECTS OF THE OFFERING NEW IPO:

 Funds Requirement
 Funding Plan (Means of Finance)
 Schedule of Implementation
 Funds Deployed
 Sources of Financing of Funds already deployed
 Interim Use of Funds
 Basic Terms of Issue
 Basis for issue price
 Tax Benefits

ADVANTAGES & DRAWBACKS OF IPO:

The Advantages of IPO are numerous. The companies are launching more and more IPO’s to
raise funds which are utilized for undertakings various projects including expansion plans.
The Advantages of IPO is the primary factor for the immense growth of the same in the last
few years.

The IPO or the initial public offering is a term used to describe the first sale of the shares to
the public by any company. All types of companies with the idea of enhancing growth launch
IPOs to generate funds to cater the requirements of capital for expansion, acquiring of capital
instruments, undertaking new projects.

IPO has a number of advantages. IPO helps the company to create a public awareness about
the company as these public offerings generate publicity by inducing their products to various
investors.

1) The increase in the capital:

An IPO allows a company to raise funds for utilizing in various corporate operational
purposes like acquisitions, mergers, working capital, research and development,
expanding plant and equipment and marketing.

11
2) Liquidity:

The shares once traded have an assigned market value and can be resold. This is
extremely helpful as the company provides the employees with stock incentive packages
and the investors are provided with the option of trading their shares for a price.

3) Valuation:

The public trading of the shares determines a value for the company and sets a standard.
This works in favor of the company as it is helpful in case the company is looking for
acquisition or merger. It also provides the shareholders of the company with the present
value of the shares.

4) Increased wealth:

The founders of the companies have an affinity towards IPO as it can increase the wealth
of the company, without dividing the authority as in case of partnership

MERITS OF IPO:

• Low cost financing

• No commitment of fixed returns.

• No restrictions attached to financing.

• No issues such as mortgaging, hypothecation etc.

• Entire money received in one stroke without linking to any milestones.

• No issues with returning of finance

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DEMERITS:

• Success of IPO has an element of risk.

• IPO can only finance part of the project

• IPO performance post listing has also bearing.

• For new promoters and new company it is difficult to market their IPO.

More often than not, the pricing of any IPO is what influences the decision of any investor.
The rating agencies, in this case, will not talk about ‘what price'' and ``what time'' aspects of
the offer. Given that the decision to invest or avoid investments in any IPO is most often a
function of the pricing, the lack of this aspect in the present IPO grading system could make
the whole process an unfinished task.

Also, rating agencies (experienced in debt rating) could face trouble with rating the equities,
which, unlike debt rating, is more dynamic and cannot be standardized. Further, IPO grading
mechanism is a globally-unique initiative; it could increase the cost of raising capital in India
and urge companies to seek capital overseas.

Markets, in the short term, can be price-driven and not purely motivated by company
fundamentals. That is to say that, at times, even good companies at higher price could be a
bad investment choice, while the not-as-good ones could be a steal at lower prices.

Despite having disclaimers, a higher graded IPO may well tempt small investors into falsely
believing that a high premium would come about on listing.

Similarly, investors may get deluded by a low-graded IPO, which could become a `missed
opportunity' in the future. The purpose of introducing grading, thus, might get defeated if it
leads to a false sense of buoyancy or alarm among investors.

13
Factors Deciding IPO Price:

 Promoters and their background.

 Current National and Global economic scenario.
 Sector specific issues in which company will be operating.
 Tie up with financial institutions.
 Investors outlook for the company

Initial Public Offering Explained

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IPO Process Steps:

Step 1: Hiring Of An Underwriter Or Investment Bank

To start the initial public offering process, the company will take the help of financial
experts, like investment banks. The underwriters assure the company about the capital being
raised and act as intermediaries between the company and its investors. The experts will also
study the crucial financial parameters of the company and sign an underwriting agreement.
The underwriting agreement will usually have the following components:

 Details of the deal

 Amount to be raised
 Details of securities being issued

Step 2: Registration For IPO

This IPO step involves the preparation of a registration statement along with the draft
prospectus, also known as Red Herring Prospectus (RHP). Submission of RHP is mandatory,
as per the Companies Act. This document comprises all the compulsory disclosures as per the
SEBI and Companies Act. Here’s a look at the key components of RHP:

 Definitions: It contains the definitions of the industry-specific terms.

 Risk Factors: This section discloses the possibilities that could impact a company’s
finances.
 Use of Proceeds: This section discloses how the money raised from investors will be
used.
 Industry Description: This section details the working of the company in the overall
industry segment. For instance, if the company belongs to the IT segment, the section
will provide forecasts and predictions about the segment.

15
  Business Description: This section will detail the core business activities of the
company.
 Management: This section provides information about key management personnel.
 Financial Description: This section comprises financial statements along with the
auditor's report.
 Legal and Other Information: This section details the litigation against the
company along with miscellaneous information.

This document has to be submitted to the registrar of companies, three days before the offer
opens to the public for bidding. Alongside, the submitted registration statement has to be
compliant with the SEC rules. Post-submission, the company can make an application for an
IPO to SEBI.

Step 3: Verification by SEBI:

Market regulator, SEBI then verifies the disclosure of facts by the company. If the
application is approved, the company can announce a date for its IPO.

Step 4: Making An Application To The Stock Exchange

The company now has to make an application to the stock exchange for floating its initial
issue.

Step 5: Creating a Buzz By Roadshows

Before an IPO opens to the public, the company endeavours to create a buzz in the market by
roadshows. Over a period of two weeks, the executives and staff of the company will
advertise the impending IPO across the country. This is basically a marketing and advertising
tactic to attract potential investors. The key highlights of the company are shared with various
people, including business analysts and fund managers. The executives adopt various user-
friendly measures, like Question and Answer sessions, multimedia presentations, group
meetings, online virtual roadshows, and so on.

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Step 6: Pricing of IPO

The company can now initiate pricing of IPO either through Fixed Price IPO or by Book
Binding Offering. In the case of Fixed Price Offering, the price of the company’s stocks is
announced in advance. In the event of Book Binding Offering, a price range of 20% is
announced, following which investors can place their bids within the price bracket. For the
bidding process, the investors have to place their bids as per the company’s quoted Lot price,
which is the minimum number of shares to be purchased. Alongside, the company also
provides for IPO Floor Price, which is the minimum bid price and IPO Cap Price, which is
the highest bidding price. The booking is typically open from three to five working days and
investors can avail the opportunity of revising their bids within the stipulated time. After
completion of the bidding process, the company will determine the Cut-Off price, which is
the final price at which the issue will be sold.

Step 7: Allotment of Shares

Once the IPO price is finalised, the company along with the underwriters will determine the
number of shares to be allotted to each investor. In the case of over-subscription, partial
allotments will be made. The IPO stocks are usually allotted to the bidders within 10 working
days of the last bidding date.

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 Industry profile

Indian Defence Industry

Global defence spending is estimated to have touched US$1.98 trillion (tn) in 2020 with 2.6%
YoY growth. Five largest spenders account for ~62%, including US, China, India, Saudi
Arabia and Russia. India defence expenditure has been on a constant growth trajectory,
largely on account of rising conflicts & border tensions with neighbours viz. China and
Pakistan in addition to cross-border terrorism threats. The contribution of defence
expenditure to GDP has risen from 2.2-2.3% to ~3% over a decade. The Indian Air Force
(IAF) comprises more than ~39%of the defence capital outlay followed by the Army and
Navy at 27% and 25%, respectively.
Frost expects the modernisation programme to be given due priority in the next decade. The
Indian Army’s modernisation effort to be realised over three to seven years. The major
indigenous defence platforms being developed for the Indian Army are Arjun MK-III, Abhay
Infantry Fighting Vehicle (IFV) and Tata Kestrel. The Indian Navy’s modernisation plan has

18
had success in integrating anti-submarine, anti-missile, support and communication
capabilities. The current focus is extensively on submarine recapitalisation and anti-
submarine warfare in order to match Chinese naval capabilities.

The IAF plans to procure new fighters & trainers and, of late, has been more successful in
upgrades (electronic warfare, avionics and communication systems), as opposed to large
batch buys. Total $3.6 billion has been allocated for the procurement of aircraft such as HAL
Tejas MK1/MK1A, Dassault Rafale, Airbus C-295, HAL light utility helicopter (LUH) and
the development of UAS. An amount of $1,607.41 million has been allocated towards
missiles and weapons systems, as the IAF modernises aircraft with new and more capable
beyond visual range missiles.

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Burgeoning defence exports
Indian defence exports crossed the $1 billion mark in FY19. Currently, exports are more
diversified both in terms of products as well as their markets. A majority of the exports
currently are being driven by the private sector while the government is creating enablers for
Indian companies such as PDS to further improve exports. With further liberalisation of
export license and increasing capability, the prospects of Indian defence exports look

Defence electronics components market

The defence components and engineering products form the foundation of military
subsystems and platforms. According to Frost & Sullivan, as modernisation of the Indian
defence sector becomes more technology oriented, four major segments will become key
contributors to most emerging programmes, viz. defence electronics, defence optics, EMP
and heavy engineering. Frost & Sullivan defines the four segments as follows:

20
The defence establishments are increasingly looking at sourcing these segments from local
suppliers because of Atmanirbhar Bharat initiative and increasing level of R&D and
manufacturing capabilities in these segments.

While currently, the spending outlays on these segments made to Indian companies are
~US$3.2 bn, by 2031 the spending is expected to increase to over ~$14.5 billion on account
of extensive fleet recapitalisation, C4ISR orientation and greater indigenous supply
preferences. The cumulative market in 2022-31 is expected to be ~$99.4 billion

21
INDIAN SPACE INDUSTRY:

Indian Space Research Organisation (Isro) is collaborating with public sector companies in
manufacturing multi-junction solar cells for space applications. Further, Isro has engaged
with other market players to assemble 27 satellites. Isro’s budget has been steadily increasing
with focus on human spaceflight and space exploration missions. Isro’s revenue expenditure
have been increasing since FY16 from US$1.1 bn to US$1.9 bn in FY21 and is forecast to
grow to US$2.2 bn by FY27.

Isro’s efforts to enable domestic private participants to outsource space systems

manufacturing, a strong focus on EO missions, and the Atmanirbhar Bharat initiative
collectively contribute to a strong environment of growth opportunities for Indian
participants, especially those in partnership with international participants.

Defence industry of India is a strategically important sector for the country. It has domestic
defence industry 80% of which is government owned which includes DRDO and its 50 labs,
4 defence shipyards, 5 defence PSUs and 41 ordnance factories etc. The new Defence
Acquisition Procedure of 2020 (DAP 2020) which will govern the procurement of Defence
Equipment from the Capital Budget has put immense focus on Indian Companies by
promoting greater indigenous content in the arms and equipments for the military.

India domestically produces only 45% to 50% of defence products it uses, and the rest are
imported. However the thrust on 'Make In India' and indigenous products has boosted the
domestic defence industry. This is seen in the Indian Defence Exports which grew from 4,682
crore (US$0.66 billion) in 2017–2018 to 10,500 crore (US$1.47billion) in 2018–2019 which
is more than double.

In line with Govt. of India's initiative, DRDO has already taken multiple steps in the direction
of reducing imports and becoming self-reliant Defence R&D & Production hub for the world.

22
 COMPANY PROFILE

PARAS DEFENCE & SPACE TECHNOLOGIES LTD

Paras offers a wide range of Products & Solutions for Defence & Space Applications. With
focus on Defence & Space Sector we have five verticals of our business, namely Defence &
Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection
Solutions and Niche Technologies.

With over 40+ years of sustained business growth in the area of Defence & Space
Engineering, We are involved in Technologies for Rocket & Missiles, Space & Space
Research, Naval Systems, Land & Armoured Vehicles, Electronic Warfare & Surveillance,
Electro Magnetic Shielding to name a few.

Paras has state-of-the-art manufacturing setup with 400+ workforce and having capabilities to
offer a Turnkey Solution from Design to Commissioning of Small to Large Systems. Our
focus on Technology Development & R&D distinguishes us as a True IDDM company in the
Indian Defence Industry. We have a vibrant team working on developing future technologies
and providing cutting edge solutions for our Customers.

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Quality Products, Delivered at the Right Time and at the most Competitive Price is our
business strategy. This has made us as one of the most dependable partners of our Customers.
Strong Fundamentals, Impeccable Business Ethics & Customer Centric Approach are the
pillars of our business as we aim to become the most significant Indian Company in the
Defence & Space Sector.

Paras Defence, a Mumbai-based defence engineering company, is primarily engaged in

designing, developing, manufacturing and testing a variety of defence and space engineering
products and solutions.\

The firm is one of the leading providers of optics for various Indian defence and space
programs. It has two manufacturing plants set up in Maharashtra. The company is also in the
process of expanding its current manufacturing facility at Nerul in Navi Mumbai.

Furthermore, it claims to be the only Indian company with the design capability for space-
optics and optomechanical assemblies. Its offerings are aligned with the “Atmanirbhar
Bharat” and “Make in India” initiatives by the government.

Major clients of the company are Bharat Dynamics, Hindustan Aeronautics and Bharat
Electronics, along with international firms in South Korea, Belgium and Israel.
Paras Defence's total assets account for around Rs 363 crore as of this year.

The Paras Defence IPO has received a very strong response from investors, especially from
qualified institutional buyers and non-institutional investors.

The fresh issue proceeds would be used by the company to fund capital expenditure
requirements, to support incremental working capital needs and repayment or prepayment of
loans availed.

Paras Defence and Space Technologies are primarily engaged in the designing, developing,
manufacturing, and testing of a variety of defence and space engineering products and
solutions. The company has five major product category offerings - Defence & Space Optics,
Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and

24
Niche Technologies. Paras Defence and Space Technologies is the only Indian company with
the design capability for space-optics and opto-mechanical assemblies and is one of the
leading providers of optics for various Indian defence and space programs. The company also
delivers customized turnkey projects in the defence segment. The company has partnered
with some of the leading technology companies around the world to indigenize advanced
technologies in the defence and space sectors for the Indian market.

The company has 2 manufacturing plants in Maharashtra and is in the process of expanding
its current manufacturing facility at Nerul in Navi Mumbai.

Competitive Strengths

 Wide range of products and solutions offerings for defence and space applications.
 One of the few manufacturers of optics for space and defence application in India.
 Companies offerings are aligned with the “Atmanirbhar Bharat” and “Make in India”
initiatives by the government.
 Strong R&D capabilities with a focus on innovation.
 Strong customer relationship with government arms and government organizations.
 Strong experienced management.

The Company was incorporated as Paras Flow Form Engineering Limited on 16 June 2009
The Company received the certificate for commencement of business on 24 July 2009.
Subsequently the name of the Company was changed to Paras Flow form Engineering
Limited pursuant to a resolution passed by the Shareholders in an extraordinary general
meeting held on 22 September 2009 and a fresh certificate of incorporation dated 25
September 2009 was issued by the ROC.
Further the name of the Company was changed to Paras Defence and Space Technologies
Limited pursuant to a resolution passed by the Shareholders in an extraordinary general
meeting held on 02 December 2015 and a fresh certificate of incorporation dated 29 January
2016.The company is involved in design development manufacturing testing &
commissioning of products systems and solutions for Defence & Space Applications. .The
Board of Directors of the Company at its meeting held on 12th January 2018 considered and
approved the scheme of amalgamation of its associate company named Concept Shapers and

25
Electronics Private Limited and its subsidiary company named Mechvac India Limited with
Paras Defence and Space Technologies Limited.

Subsequently the shareholders of the erstwhile Mechvac India Limited were allotted 100
equity shares fully paid up of Rs10/- each of Paras Defence and Space Technologies Limited
for every 784 shares of Mechvac India Limited and the shareholders of the erstwhile Concept
Shapers and Electronics Private Limited were allotted 100 equity shares fully paid up of Rs
10/- each of Paras Defence and Space Technologies Limited for every 1535 equity shares of
Concept Shapers and Electronics Private Limited. Pursuant to the scheme of amalgamation
572534 equity shares were allotted to the shareholders of the erstwhile Mechvac India
Limited and Concept Shapers and Electronics Private Limited on 20 August 2018.

The shares pursuant to the scheme of amalgamation were allotted vide allotment dated 20
August 2018 and the cross holdings stand cancelled.During the FY2019 the company has
allotted 100000 equity shares of Rs 10/- were allotted on conversion of 1000000 Unsecured
0% Compulsorily Convertible Debentures of Rs 100/- each on 03rd November 2018.As on
31st March 2019 the Company had 5 subsidiaries out of which 4 are Indian subsidiaries and 1
overseas subsidiary.

During the FY2020the company has allotted 22730136 equity shares of Rs 10 each by way of
issuance of bonus shares in the ratio of 4:1.Also on 13 August 2020the company has allotted
2999000 0.01% Optionally Convertible Preference Shares of Rs 100 each issued to MDAVF
through its investment Manager IDBI Capital Markets & Securities Limited.

As on 31st March 2020 the Company had 4 subsidiaries out of which 3 are Indian
subsidiaries and 1 overseas subsidiary. The outbreak of COVID-19 virus continues to spread
across the globe including India and to control the Government authorities had been forced to
commence nationwide lockdown. The operations of the Group remained completely shut
down in the month of April 2020 and thereafter operations have been started slowly as per the
instruction of the State Government / Local authorities.

During the FY2021the company has allotted 1440000 equity shares of Rs 10 each at a
premium of Rs 115 per share on private placement. The company came out with an Rs 171
crore public issue comprises a fresh issue of Rs 140.60 crore. .The IPO shares have been

26
allotted at the price of Rs 175 per share and got listed on the BSE Ltd and National Stock
Exchange of India Ltd(NSE) on 01 October 2021.

Objects of the Offer:

The net proceeds will be utilized for the following purpose
Purchase of machinery & equipment (INR34.7Cr)
Meet incremental working capital requirement (INR60Cr)
Repayment and pre-payment of certain borrowings availed by the company from
NKGSB, Kotak Siemen financial service (INR12cr)

Share holding Pattern Pre-Issue (%) Post-Issue (%)

Promoters & Promoters 79.40% 59.71%
Group
Others 20.60% 40.29%
Total 100.0% 100.0%

The Company's customers are government agencies and prominent Indian

and International firms:

Domestic Customers Foreign Customers

Electronic Corporation of India Ltd (ECIL), Advanced Mechanical and Optical Systems
(AMOS), Belgium,
Alpha Design Technologies Ltd, Chaban (Israel)
Astra-Rafael Comsys Pvt.Ltd. Green Optics (South Korea) etc.
Bharat Electronics Ltd (BEL) Tae Young Optics Company Limited (South
Korea)
Bharat Dynamics Ltd (BDL),
Hindustan Aeronautics Ltd (HAL),
Hindustan Shipyard Ltd (HSL),
Solar Industries India Ltd,
Tata Consultancy Services Ltd (TCS)

27
Business Model

The company's product portfolio is divided into five distinct categories:

1)Defence and space optics
2)Defence electronics
3)EMP protection
4)Heavy engineering for defence
5)Niche technologies

The company derives most of its revenues under the contracts from the Government arms and
associated entities such as defence public sector undertakings and government organizations
involved in space research. Additionally, the company places a strong emphasis on R&D
which has help edit to develop a wide range of 34 categories of products and solutions, with
multiple variations in each category. The company intends to diversify its products and
solutions portfolio through R&D and partnering with overseas technology companies with
specialized technologies in the field of defence and space sector, which will allow it to offer
an even wider range of products and solutions.

The Company’s order book as on June 30, 2021:

Particulars No. of orders Value(INR Cr)

Defence and Space 37 203
Optics
Defence Electronics and 49 71
EMP Protection solution
Heavy Engineering for 37 37
Defence
Total Order Book 310

Competition

Since the parameters of competition are less firmly established than in certain other types of
businesses, it is difficult to predict how the competitive landscape of the business will
develop over the long term. General competitive factors in the market,which may affect the

28
level of competition over the short and medium-term, include product features, design,
quality, price, delivery, general customer experience, time to market, availability of after-sale
and logistics support,and relationships between producers and their customers.

USP of Paras Defence

Wide range of solutions and products - The company has 34 different categories of
products and solutions with multiple variations in each category. In the space sector, they
have established heritage in the earth observation domain by supporting government
organizations involved in space research across multiple missions. Their R&D and
technological capabilities have helped them in diversifying their products and solutions.

High precision optics manufacturing - Paras Defence is one of the few players in high
precision optics manufacturing for space and defence applications in India. It houses
equipment and machinery, inter alia, for nanotechnology, grinding, machining, polishing, and
turning coupled with robust testing set up for measuring the performance parameters of the
optical components. They are well-positioned to cater to demand from Government space
organizations for optics on earth observation and space exploration missions.

Strong R&D capability - The company has a strong emphasis on R&D, which has helped
them to develop a wide range of solutions and products. The R&D department of the
company has many achievements to its name. One of the biggest ones is that they have
successfully developed and delivered remotely controlled surveillance and defence systems
recently which will enhance their defence capabilities.

29
Make in India Initiatives - The company falls within the category of IDDM, the highest
category in the priority of categorization under Defence Acquisition Procedure since most of
their products and components are designed, developed, and manufactured in India.

Growth Potential

Forward integration: The company plans on using part of the IPO proceeds to forward
integrate camera manufacturing for the space sector. Currently, they manufacture just the
lenses. This is expected to increase revenue.

New markets - The company currently manufactures lenses of cameras for the space sector
only but has now got an order for automotive cameras too. They are also working on drone
cameras. Expanding their know-how to other markets using cameras will be a great growth
opportunity.

Targeting the international market- The company more than 80% of the revenue comes
from the Indian market. The international customers of the company exist in markets like
Israel and South Korea. The company plans to provide its product and solutions to markets in
the United States and Europe. Recently, they have received orders from the United States and
United Arab Emirates for manufacturing IR Lens and Electro-Mechanical Masts,
respectively.

Risk

Dependency on the Government of India - The business and revenue of Paras Defence are
largely dependent on the contracts from the government and associated entities. A decline or
reprioritization of the Indian defence or space budget, termination of existing contracts,
reduction in orders, delay of existing or anticipated contracts or programs, or any adverse
change in the GoI’s defence or space-related policies will affect the business of the company.

Agreement with third parties- Paras Defence has executed various agreements with third
parties in relation to securing contracts and manufacturing of products. The contracts may

30
impose a certain obligation on the company, and termination of any contract may affect the
business and lead to a decline in revenue.

R&D cost- Many of the contracts that the company has signed contain performance
obligations that require innovative design capabilities, are technologically complex, or
involve developmental costs. The company spends a substantial amount on R&D as part of
our efforts to design, develop and commercialize new products and solutions and enhance
existing products and solutions portfolios. However, there is no guarantee that R&D
initiatives will be successful or be completed within the anticipated time frame or budget.

High working capital: The company had working capital of more than 100% of the total
revenue in FY21. The company’s MD said going forward they are forward integrating and
will be manufacturing complete products in house, for example, not just lenses but the whole
camera. This is expected to bring down their turnover times and improve working capital
requirements.

31
 DATA ANALYSIS, INTERPRITATION
AND PRESENTATION

Company Promoters:
Sharad Virji Shah and Munjal Sharad Shah are the company promoters.

Company Financials:
Summary of financial Information (Restated Consolidated)

Particulars For the year/period ended (₹ in millions)

31-Mar-21 31-Mar-20 31-Mar-19

Total Assets 3,627.58 3,423.86 3,297.48

Total Revenue 1,446.07 1,490.51 1,571.69

Profit After Tax 157.86 196.57 189.70

Objects of the Issue:

 Fund capital expenditure requirements.

 Funding incremental working capital requirements.
 Repayment or prepayment of all or a portion of certain borrowings/outstanding loan
facilities availed by the company.
 General Corporate purposes.

32
 PARAS DEFENCE AND SPACE TECHNOLOGIES LTD.
(PARAS)- Listing info

KEY DATES

YEAR ENDING MONTH MARCH

AGM DATE (MONTH) N.A.

BOOK CLOSURE DATE (MONTH) N.A.

LISTING INFORMATION

FACE VALUE OF EQUITY SHARES 10

MARKET LOT OF EQUITY SHARES 1

BSE CODE 543367

NSE CODE PARAS

BSE GROUP B

WHETHER THE COMPANY FORMS A PART OF THE FOLLOWING INDICES -

SENSEX NO

NIFTY NO

BSE 100 NO

BSE 200 NO

BSE 500 NO

CNX 500 NO

CNX MIDCAP NO

LISTING ON

THE STOCK EXCHANGE, MUMBAI

LISTING ON STOCK EXCHANGE, NATIONAL
STOCK EXCHANGE OF INDIA LTD.

33
PARAS DEFENCE AND SPACE TECHNOLOGIES LTD. (PARAS) –
MUTUAL FUND HOLDING

AMOUNT NET
NO OF
INVESTED ASSET
SCHEME SHARES
(RS CR) (%)

HDFC FOCUSED 30 FUND (G) 49.19 530459 5.34

HDFC FOCUSED 30 FUND - DIRECT (G) 49.19 530459 5.34

NIPPON INDIA SMALL CAP FUND (G) 45.24 487900 0.26

NIPPON INDIA SMALL CAP FUND (B) 45.24 487900 0.26

NIPPON INDIA SMALL CAP FUND - DIRECT (B) 45.24 487900 0.26

NIPPON INDIA SMALL CAP FUND - DIRECT (G) 45.24 487900 0.26

34
PARAS DEFENCE AND SPACE TECHNOLOGIES LTD - STOCK STRENGTH
[DATE 22-11-2021]

TODAY'S LOW/HIGH 685.45 727.00

WEEK LOW/HIGH 685.45 818.00

MONTH LOW/HIGH 685.45 1272.00

YEAR LOW/HIGH 456.00 1272.00

ALL TIME LOW/HIGH 456.00 1272.00

PARAS DEFENCE AND SPACE TECHNOLOGIES LTD. (PARAS) - FINANCIAL

OVERVIEW

PARTICULARS ( CR) 2020 2019 2018

NET SALES 146.57 154.40 143.09

OPERATING PROFIT 42.02 46.04 44.45

OTHER INCOME 2.22 2.77 3.28

INTEREST 10.21 9.75 7.36

DEPRECIATION 9.71 9.41 6.68

PROFIT BEFORE TAX 22.10 26.88 30.41

TAX 2.13 7.84 5.33

PROFIT AFTER TAX 19.97 19.04 25.08

35
SHARE CAPITAL 28.41 5.68 5.58

RESERVES 144.59 146.75 118.25

NET WORTH 173.00 152.43 123.83

LOANS 104.25 86.56 67.24

GROSS BLOCK 184.93 186.01 179.73

INVESTMENTS 0.08 0.09 0.06

CASH 4.33 1.80 2.65

DEBTORS 97.26 83.23 25.29

NET WORKING CAPITAL 114.44 67.98 18.43

OPERATING PROFIT MARGIN (%) 28.67 29.82 31.06

NET PROFIT MARGIN (%) 13.62 12.33 17.53

EARNING PER SHARE (RS) 7.03 33.50 44.93

DIVIDEND (%) 0.00 0.00 0.00

36
PARAS DEFENCE AND SPACE TECHNOLOGIES LTD - RETURNS

PERIOD BSE NSE SENSEX NIFTY

1 WEEK -13.18% -13.16% -4.25% -4.43%

1 MONTH -43.42% -42.81% -4.42% -4.46%

3 MONTH NA NA 5.07% 5.20%

6 MONTH NA NA 15.03% 14.04%

1 YEAR NA NA 32.48% 34.59%

3 YEAR NA NA 66.19% 64.40%

PARAS DEFENCE AND SPACE TECHNOLOGIES LTD - SHAREHOLDING

PATTERN

share holdings
promoters

banks

6% FIIS

24% insurance

mutual funds

3% 61% indian public

0%
4%
2% other

37
 % Share
Holder's Name No of Shares
Holding
No Of Shares 39000061 100%
Promoters 22987250 58.94%
Foreign Institutions 1698573 4.36%
Banks Mutual Funds 1100122 2.82%
Others 2127177 5.45%
General Public 9219974 23.64%
Financial Institutions 1866965 4.79%

PARAS DEFENCE AND SPACE TECHNOLOGIES LTD - KEY FUNDAMENTALS

PARAMETER VALUES

MARKET CAP ( CR) 2,673

EPS – TTM ( ) [*S] 3.87

P/E RATIO (X) [*S] 177.13

FACE VALUE ( ) 10

LATEST DIVIDEND (%) -

LATEST DIVIDEND DATE -

DIVIDEND YIELD (%) 0.00

BOOK VALUE / SHARE ( ) [*S] 82.45

P/B RATIO ( ) [*S] 8.31

[*C] Consolidated [*S] Standalone

38
OFFER STRUCTURE

Particulars IPO Details

No. of shares under 10,245,702-9,758,772
IPO (#)
Net offer (# shares) 10,245,702-9,758,772

Price band (INR) 165 –175

Post issue MCAP 652-683
(INR Cr.)

Paras Defence and Space Technologies IPO Details

IPO Opening Date Sep 21, 2021

IPO Closing Date Sep 23, 2021

Issue Type Book Built Issue IPO

Face Value ₹10 per equity share

IPO Price ₹165 to ₹175 per equity share

Market Lot 85 Shares

Min Order Quantity 85 Shares

Listing At BSE, NSE

Issue Size [.] Eq Shares of ₹10

(aggregating up to ₹170.78 Cr)

Fresh Issue [.] Eq Shares of ₹10

(aggregating up to ₹140.60 Cr)

Offer for Sale 1,724,490 Eq Shares of ₹10

(aggregating up to ₹30.18 Cr)

39
Paras Defence and Space Technologies IPO Tentative Timetable

 The Paras Defence and Space Technologies IPO open date is Sep 21, 2021, and the
close date is Sep 23, 2021. The issue may list on Oct 1, 2021.

IPO Open Date Sep 21, 2021

IPO Close Date Sep 23, 2021

Basis of Allotment Date Sep 28, 2021

Initiation of Refunds Sep 29, 2021

Credit of Shares to Demat Account Sep 30, 2021

IPO Listing Date Oct 1, 2021

Paras Defence and Space Technologies IPO Lot Size

The Paras Defence and Space Technologies IPO market lot size is 85 shares. A retail-
individual investor can apply for up to 13 lots (1105 shares or ₹193,375).

Application Lots Shares Amount (Cut-off)

Minimum 1 85 ₹14,875

Maximum 13 1105 ₹193,375

Paras Defence and Space Technologies IPO Promoter Holding

Pre Issue Share Holding 79.4%

Post Issue Share Holding 59.71%

40
Paras Defence and Space Technologies IPO Subscription Status (Bidding
Detail)

The Paras Defence and Space Technologies IPO is subscribed 304.26 times on Sep 23, 2021
17:00. The public issue subscribed 112.81 in the retail category, 169.65 in the QIB category,
and 927.70 in the NII category.

Paras Defence and Space Technologies IPO Listing Date

Listing Date Friday, October 1, 2021

BSE Script Code 543367

NSE Symbol PARAS

Listing In T Group of Securities

ISIN INE045601015

IPO Price ₹175 per equity share

Face Value ₹10 per equity share

Listing Day Trading Information

BSE NSE

IPO Price ₹175.00 ₹175.00

Open ₹475.00 ₹469.00

Low . ₹460.00

High ₹498.75 ₹492.45

Last Trade ₹498.75 ₹492.45

41
BALANCE SHEET

42
CASH FLOW STATEMENT

43
KEY RATIOS

44
 Findings
Investment Rationale

Diversified product range for defence & space applications

PDS is a leading IDDM category private sector company in India catering to four major
segments: defence electronics, EMP solutions, defence optics, heavy engineering, etc, with
little competition as most other companies operate in one or two segments only. As on June
30, 2021 it has a range of 34 different categories of products and solutions, with multiple
variations in each category. The capital outlay on the aforementioned four segments is
expected to increase from ~US$3.2 bn in 2021 to over US$14.5 bn by 2031 due to extensive
fleet re-capitalisation, C4ISR orientation and greater indigenous supply preferences.

It is also the sole product supplier of diffraction gratings used in hyper-spectral imagers, large
size optics. Further, as a supplier to government organisations, PDS has been a part of most
of the earth observation (EO) and space exploration missions of Isro since 2018. Its R&D and
technological capabilities have helped diversify its products and solutions. Also,
collaboration with certain reputed overseas technology companies enables it to further
expand its products and solutions portfolio. For instance, PDS has entered into teaming
agreements with various German technology companies for unfurlable and deployable
antenna, subsystems and services of parts, subassembly or assembly made out of carbon fibre
reinforced polymers (CFRP).

Its wide range of products and solutions catering to specific customer needs enable it to
successfully service core strategic sectors in India such as defence and space in India.

One of the few players in high precision optics manufacturing

It is one of the few manufacturers in India with comprehensive in-house capabilities of

designing, developing and manufacturing optics for space and defence application in India.
The manufacturing facility has capabilities such as equipment and machinery, inter alia, for
nano technology, machining, grinding, polishing and turning coupled with a robust testing set
up for measuring the performance parameters of the optical components. Its in-house
facilities include single point diamond turning machines, grinding and polishing machines for

45
precision optics and large size space optics, optical thin film coatings with fully equipped
metrology with contact and non-contact measurements.

It has uniquely positioned itself to cater to demand from government space organisation for
optics in earth observation and space exploration missions.

With strong experience in working with government space organisations on critical space
missions and being the sole Indian supplier of diffractive gratings used in hyper-spectral
imagers and infrared lenses, it has established itself well in the Indian space market.

It also specialises in large-sized optical mirror and is the only Indian company with the
design capabilities for space-optics and opto-mechanical assemblies. This positions it as one
of the key participant of value for all exploratory and observatory missions involving large
space telescopes.

Well positioned to benefit from “Make in India” Initiatives.

India is witnessing path-breaking reforms in the defence sector. Recently, the MoD has
announced the Defence Acquisition Procedure which has come into effect from October 1,
2020. This procedure focuses on significantly boosting indigenous production and turning
India into a global manufacturing hub of weapons and military platforms. This procedure has
been aligned with the vision of the Government’s Atmanirbhar Bharat (self-reliant India)
initiative and to empower Indian defence industry through ‘Make in India’ projects. We
believe that this policy will provide a significant boost to indigenous manufacturing
companies such as PDS. With its domain expertise, R&D and manufacturing capabilities, it is
poised to fully benefit from the same. For instance, the Ministry of Defence (MoD) has
prepared a list of 101 items for which there would be an embargo on import (Import Embargo
List) in August 2020. Some of the products listed in the Import Embargo List such as EMP
racks, EMP filters used for protection of data and power lines within a rack/shelter/room
against electro-magnetic pulse or interference are currently manufactured by PDS and will
only help to increase its foothold as a supplier for products as well as an opportunity to
expand its existing products portfolio by using R&D.

In line with the Atmanirbhar Bharat and Make in India initiatives of the Government, PDS
has collaborated with technology companies to boost indigenous manufacturing. For instance,

46
it is the manufacturing partner for all its international associates including, Holland Shielding
Systems BV, Netherlands, Kley, France, HPS, Gmbh and Invent, Gmbh. Through this, it has
successfully indigenised certain equipment such as EMP filters and military winch systems.
In addition, its enhanced capabilities and know-how have enabled it to develop a variety of
products such as EMP racks, diffractive gratings, IR optics, command and control system,
etc, which are 100% indigenously developed and delivered to its customers.

Strong relationship with diverse customer base...

PDS has a diversified customer base, which ranges from government arms and government
organisations involved in defence and space research, to various DPSUs such as Bharat
Dynamics, Bharat Electronics and Hindustan Aeronautics, to various private entities such as
Tata Consultancy Services, Astra-Rafael Comsys Pvt Ltd, Solar Industries India, Alpha
Design Technologies Pvt Ltd, etc. PDS also service international customers including
Advanced Mechanical and Optical Systems (AMOS), Belgium, Chaban (Israel), Tae Young
Optics Company (South Korea), and Green Optics (South Korea). We believe that its rich
experience in designing, developing and manufacturing components for diverse customers in
defence and space sector, has enabled it to develop a deep understanding of the sectors and
customers’ requirement. Its partnership with overseas technology companies also enables it to
serve as manufacturing partner for global customers of such companies.

A key focus of its business is in providing high quality products and solutions which are
designed, developed and/or manufactured to meet the specific requirements of its customers
at competitive pricing.
PDS also aims to provide its customers with quality after-sales service by efficiently handling
after-sales support requirements and deepen its customer relationships to become their
preferred suppliers. The company is also continually innovating and working on offering
value added and technologically advanced products and solutions to its customers, partnering
with its key customers to co-develop products and solutions. Going forward, we believe there
will be an increase in demand for its products and solutions on account of the government’s
Atmanirbhar Bharat and Make in India initiatives that are expected to increase defence
production in India.

47
Key Risk
Decline or reprioritisation of Indian defence of space budget
A decline or reprioritisation of the Indian defence or space budget, changes in GoI entities’
defence or space requirements and geopolitical circumstances, reduction in orders,
termination of existing contracts, delay of existing contracts or programmes will have a
material adverse impact on its business. For FY19, FY20 and FY21, PDS derived 35.6%,
28.8% and 50.8% of its total consolidated revenue, respectively. Further, as on June 30, 2021,
its order book from the GoI entities, was | 130.6 crore out of | 305 crore.

Third party manufacturing contracts may impose obligations

PDS has entered into contracts with third parties in India and outside India for partnering in
relation to development of certain products or sourcing components. For instance, PDS has
entered into teaming agreements with companies such as HPS Gmbh, Invent Gmbh, and Kley
France. These agreements are typically short-term and are entered into for one or two years.
As part of such partnerships or collaborations, PDS may take certain steps such as making
investment in R&D for products, which are the subject matter of such partnerships or may
commit to orders based on arrangements agreed to in such contracts, which cannot be assured
to be renewed or extended at the end of their respective terms. A delay in or failure to do so
may have an impact on its business, financial condition and results of operations.

Fixed price contracts may result in cost overruns

Most of its contracts are fixed-price contracts. All costs including labour and raw materials
costs are forecast by the company when it enters such fixed-price contracts. In case of cost
variances from such estimates, it is permitted to retain all cost savings on completed contracts
but is liable for the full amount of all cost overruns. In the past, PDS has witnessed cost
overruns in some of its contracts and may also witness the same in the future.

Loss, shutdown or slowdown may impact business

PDS has two manufacturing facilities in Maharashtra, at Ambernath in Thane, Maharashtra
and Nerul in Navi Mumbai, Maharashtra. Its R&D activities are mainly undertaken at its

48
centres at Nerul and Bengaluru, Karnataka. While its Ambernath facility is engaged in
manufacturing heavy engineering products, its Nerul facility is engaged in manufacturing
optics, manufacturing and integration of electronics and EMP protection products and
solutions. PDS relies exclusively on each of these two manufacturing facilities to earn
revenues, pay its operating expenses and service debt. Any significant interruption to, or loss
or shutdown of, operations at any of its manufacturing facilities or R&D centres would
adversely affect its business.

49
 Suggestions

Things You Must Know Before Investing In An IPO

Now that you are aware of what is IPO in stock markets, here’s a look at the process of an
IPO and the steps well-informed investors must take, before investing their hard-earned
money in IPOs.

• Make An Informed Decision:

Before investing in an IPO, you must read the company’s prospectus thoroughly. It will
allow you to know about the company’s business plans and the reason why it is initiating an
IPO.

• Get Access To The Requisite Funds:

Once you have made an informed decision to apply for an IPO, you must arrange for the
requisite funds. You can use your existing savings or take a loan for investment purposes.

• Open a Demat And Trading Account:

Now you are required to open a Demat Account and a Trading Account. While your stocks
are held electronically in the Demat Account, the Trading Account will allow you to place
purchase and sell orders.

• Making An Application For The IPO:

You have to compulsorily avail the Applications Supported by Blocked Account (ASBA)
facility, before making an IPO application. ASBA applications are provided to investors; both
in the electronic and physical format. Here, you must keep in mind that ASBA authorises a
bank to block the investor’s money for subscribing to an IPO. Thus, till the time the shares
are allotted, after the IPO process, your money will remain with the bank.

• The Bidding Process:

If the company has announced a book building IPO, you have to make an application in tune
with the company’s quoted Lot Size. This is the minimum number of shares you must apply
for. Now you are required to place a bid within the price range.

50
• The Process Of Allotment:
If you receive full allotment or the actual number of shares for which you made an
application, you will get a Confirmatory Allotment Note (CAN) within six working days of
the IPO. But in the case of higher demand, you can also get partial allotment. In this case, the
banks will unlock the blocked amount, in tune with allotments made.

51
Recommendation –

Apply with Long Term Investment View

Paras Defence and Space Technologies are primarily engaged in the designing, developing,
manufacturing, and testing of a variety of defence and space engineering products and
solutions.

The company has five major product category offerings – Defence & Space Optics, Defence
Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche
Technologies. Paras Defence and Space Technologies is the only Indian company with the
design capability for space-optics and opto-mechanical assemblies and is one of the leading
providers of optics for various Indian defence and space programs.

The company also delivers customized turnkey projects in the defence segment. The
company has partnered with some of the leading technology companies around the world to
indigenize advanced technologies in the defence and space sectors for the Indian market. The
company has 2 manufacturing plants in Maharashtra and is in the process of expanding its
current manufacturing facility at Nerul in Navi Mumbai.

The Company has wide range of products and solutions offerings for defence and space
applications. It is one of the few manufacturers of optics for space and defence application in
India. Companies offerings are aligned with the “Atmanirbhar Bharat” and “Make in India”
initiatives by the government.

The Company has strong R&D capabilities with a focus on innovation and strong customer
relationship with government arms and government organizations. In addition to all the above
mentioned points; the Company has strong experienced management. In view of all these
competitive strengths; investors may consider applying to this IPO with a long term
investment view.

52
 Conclusion
Mirroring massive investor interest, the initial public offer of Paras Defence and Space
Technologies received a whopping 304.05 times subscription so far on the closing day on
Thursday.

The IPO received bids for 2,17,11,27,120 shares against 71,40,793 shares on offer, according
to an update on the NSE till 1630 hours.

The Qualified Institutional Buyers (QIBs) category was subscribed 169.65 times, non-
institutional investors a massive 927.70 times, and Retail Individual Investors (RIIs) 112.39
times.The initial public offer has a fresh issue of up to Rs 140.6 crore and an offer for sale of
up to 17,24,490 equity shares.

The price range for the offer is Rs 165-175 per share.

The initial public offer (IPO) was fully subscribed within hours of opening on the first day on
Tuesday.

Paras Defence and Space Technologies on Monday said it has garnered a little over Rs 51
crore from anchor investors.

Proceeds of the fresh issue would be used to fund capital expenditure requirements, to
support incremental working capital needs, and repayment or prepayment of loans availed by
the company.

The company is engaged in designing, developing, manufacturing, and testing a wide range
of defence and space engineering products and solutions.

Paras Defence and Space Technologies' business is highly dependent on projects and
programmes are undertaken by the central government and associated entities, such as
defence public sector undertakings and government organisations involved in space research.

Anand Rathi Advisors is the manager of the offer. The equity shares of the company would
be listed on BSE. Paras defence and space technologies limited is a successful IPO.

53
 APPENDEX

PARAS DEFENCE RED HEARING PROSPECTUS

54
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technologies-limited_49418.html

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ltd/ipos/companyid-43314.cms

•https://www.valueresearchonline.com/stories/49767/paras-defence-and-space-
technologies-ipo-information-analysis/

• https://www.sptulsian.com/f/ipo-analysis/paras-defence

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8&client=firefox-b

•https://www.zeebiz.com/market-news/news-paras-defence-ipo-all-set-for-stock-market-
debut-on-october-1-listing-gain-long-term-check-what-anil-singhvi-recommends-166484

•https://www.bloombergquint.com/research-reports/paras-defence-space-technologies-
ipo-investment-rationale-future-growth-strategies-krchoksey

55
•https://www.business-standard.com/article/markets/paras-defence-ipo-receives-304-
times-subscription-so-far-on-closing-day-121092301016_1.html

56