Paras Defence and Space Technologies Ltd. announced the conclusion of its Qualified Institutional Placement (QIP) on Monday. The company’s management approved the issuance of 12.93 lakh fully paid-up equity shares to qualified institutional buyers at a price of Rs 1,045 per share. This issue price reflects a 2.97% discount compared to the stock’s closing price of Rs 1,077 on the same day.
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The QIP, which commenced on October 1, aimed to raise Rs 200 crore. The company has confirmed receipt of all necessary funds in its escrow account from eligible QIBs and has finalized the allocation of shares to them. This funding is expected to support the company’s strategic initiatives and growth plans.
Amit Mahajan, Director of Paras Defence, conveyed confidence in the company’s growth prospects. He indicated that the company aims for an annual revenue growth rate of 20-30%, with the potential for even higher growth in the next five years, indicating a strong optimism about future performance.
On the trading front, shares of Paras Defence closed 5.03% lower at Rs 1,077, while the NSE Nifty 50 saw a decline of 0.87%. Despite the recent drop, the stock has experienced a notable rise of 43.41% year-to-date and 42.28% over the past year.
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The successful closure of the QIP marks a significant milestone for Paras Defence, reflecting strong interest from institutional investors and reinforcing the company’s commitment to leveraging funds for its growth trajectory. This financial backing is crucial for the company as it navigates through its strategic objectives.
