Paras Defence and Space Technologies Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹175
Per ShareLot Size
85 Shares
Minimum Investment
₹14,875
Issue Size
₹170.78 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Paras Defence and Space Technologies Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
59.53%
Promoter Holding (Post-Issue)
43.93%
Issue Type
Book Building
ISIN
INE045601023
About the Company
Paras Defence and Space Technologies Limited is an Indian private sector company engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions. The Company is one of the leading 'Indigenously Designed Developed and Manufactured' category private sector companies in India, which caters to four major segments of Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse protection solution and heavy engineering. It is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India.
Industry Overview
Global defence spending touched $ 1.93 trillion in 2019, which was an increase of 3.6% over such corresponding spending in 2018, and the largest annual growth since 2010. Further, India's defence budget has grown from $ 46.07 billion for FY 2017 to $ 64.62 billion for FY 2022. The defence optics segment is forecasted to grow from approximately $ 255 million in 2021 to approximately $ 2.1 billion in 2030. Airborne Combat and ISR capability expansion will be a major driver of this segment, along with land forces modernization.
Company History
Paras Defence and Space Technologies Limited was incorporated as "Paras Flow Form Engineering Limited" under the Companies Act, 1956, at Mumbai, pursuant to a certificate of incorporation dated June 16, 2009, issued by the Registrar of Companies, Maharashtra at Mumbai ("RoC"). The Company received the certificate for commencement of business on July 24, 2009. Subsequently, the name of the Company was changed to "Paras Flowform Engineering Limited" pursuant to a resolution passed by its Shareholders in an extraordinary general meeting held on September 22, 2009 and a fresh certificate of incorporation, dated September 25, 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 its Shareholders in an extraordinary general meeting held on December 2, 2015 and a fresh certificate of incorporation, dated January 29, 2016 was issued by the RoC.
Products & Services
- Defence and space optics, defence electronics, heavy engineering for defence, EMP protection solutions, and niche technologies
Growth Strategy
- Expansion of its production capacity
- Strengthen its foothold in India's expanding market
- Continue to focus on R&D
- Diversify its products and solutions range, with focus on growth by expansion into opportunistic areas
- Increasing its reach in the international market
Customer Base
Government arms and notable Indian public and private sector companies including Bharat Electronics Ltd, Hindustan Aeronautics Ltd, Bharat Dynamics Ltd, Hindustan Shipyard Ltd, Electronic Corporation of India Ltd, Tata Consultancy Services Ltd, Solar Industries India Ltd, Alpha Design Technologies Pvt Ltd and Astra-Rafael Comsys Pvt. Ltd. Foreign customers include Advanced Mechanical and Optical Systems (AMOS), Belgium, Tae Young Optics Company Ltd (South Korea), and Green Optics (South Korea) etc.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 9,758,776* equity shares of face value of Rs. 10 each (ôequity sharesö) of our company for cash at a price of Rs. 175 per equity share (including a share premium of Rs. 165 per equity share) (ôoffer priceö) aggregating to Rs. 170.78 crores ("Offer") comprising of a fresh issue of 8,034,286* equity shares aggregating to Rs. 140.60 crores by the company ("Fresh Issue") and an offer for sale of 1,724,490* equity shares aggregating to Rs. 30.18 crores ("Offer for sale"), comprising of 1,250,000* equity shares aggregating to Rs. 21.88 crores by sharad Virji Shah, 50,000* equity shares aggregating to Rs. 0.87 crores by Munjal Sharad Shah (Sharad Virji Shah and Munjal Sharad Shah collectively referred to as the "promoter selling shareholders"), 300,000* equity shares aggregating to Rs. 5.25 crores by Ami Munjal Shah, 62,245* equity shares aggregating to Rs. 1.09 crores by Shilpa Amit Mahajan and 62,245* equity shares aggregating to Rs. 1.09 crores by Amit Navin Mahajan (Ami Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan collectively referred to as the "individual selling shareholders" and together with the promoter selling shareholders, referred to as the "selling shareholders", such equity shares the "offered shares"). The face value of equity shares is Rs. 10 each. The Offer price is 175 for the equity share of the face value of Rs. 10
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Wide range of products and solutions for both defence and space applications;
- One of the few players in high precision optics manufacturing for space and defence application in India;
- Strong R&D capabilities with a focus on innovation;
- Well positioned to benefit from the Government's "Atmanirbhar Bharat" and "Make in India" initiatives;
- Strong relationships with a diverse customer base;
- The loss, shutdown or slowdown of its business operations may have a material adverse effect on its business, results of operations and financial condition.
- The company business is largely dependent on contracts from the Government of India ("GoI") and associated entities including defence public sector undertakings and government organizations involved in space research. A decline or reprioritisation of the Indian defence or space budget, reduction in orders, termination of existing contracts, delay of existing or anticipated contracts or programmes or any adverse change in the GoI's defence or space related policies will have a material adverse impact on its business.
- The Company has executed various agreements with third parties, including in relation to securing contracts and manufacturing of products, which may impose certain obligations on its and the termination of which may adversely affect its business, results of operations, financial condition and prospects.
- The company design, develop and manufacture products and solutions that incorporate advanced technologies. Many of our contracts contain performance obligations that require innovative design capabilities, are technologically complex or involve developmental costs. Further, developing customised products and solutions and other research and development ("R&D") activities involve risks and we may not realize the degree of benefits initially anticipated or in a timely manner or at all. Further, such activities may not lead to satisfactory returns, including in relation to its unmanned aerial vehicle ("UAV") integration solutions.
- Any failure to protect or enforce our rights to own or use trademarks and brand name and identity could have an adverse effect on its business and competitive position. Further, the application for registering its corporate logo as trademark has been made and is currently pending.