Paras Defence IPO To Open on Sep 21; Sets Price Band at Rs 165-175 Per Share

Paras Defence and Space Technologies on Thursday said it has fixed a price band of Rs 165-175 a share for its Rs 171-crore initial share sale. The three-day initial public offering (IPO) will open for subscription on September 21 and conclude on September 23, the company said in a statement.

The offering comprises fresh issuance of shares worth Rs 140.6 crore and an offer of sale (OFS) of up to 17,24,490 equity stocks by promoters and existing shareholders. Those selling shares on the OFS are promoters -- Sharad Virji Shah, Munjal Sharad Shah and individual selling shareholders are -- Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan. At the upper end of the price band, the IPO is expected to fetch Rs 170.7 crore.

Proceeds of the fresh issue would be used to fund capital expenditure requirements, support incremental working capital needs and repayment or prepayment of loans availed by the company. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 85 equity shares and in multiples of 85 equity shares thereafter. 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 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 book running lead manager to the issue. The equity shares of the company would be listed on BSE and NSE.

(PTI)