Paras Defence and Space Technologies Ltd IPO

Last Updated: 04 April 2022 1:49 PM by 5Paisa

Offer Details:-

The offer comprises of a fresh issue and an offer for sale. The fresh issue is of ₹140.6cr, of which ₹34.65cr would be used for purchasing machinery and equipment, ₹60cr would be used for funding working capital requirements of the company, ₹12cr would be used for repayment or prepayment of all or portion of certain borrowings availed by the company and the balance of the fresh issue would be used for general corporate purposes. The offer for sale is 1,724,490 shares amounting to ₹30.18cr, the proceeds of which would go directly to the selling shareholders.

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. It is one of the leading ‘Indigenously Designed Developed and Manufactured’(“IDDM”) 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 (“EMP”) protection solution and heavy engineering. (Source F&S Report) Paras Defence is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India (Source F&S Report). The company is also one of the leading providers of optics for various Indian defence and space programmes, and the only Indian company with the design capability for space-optics and opto-mechanical assemblies (Source: F&S Report).

Paras Defence has two manufacturing facilities in Maharashtra, located at Nerul in Navi Mumbai and Ambernath in Thane. The company derives most of the revenues under the contracts from the Government arms and associated entities such as defence public sector undertakings and government organizations involved in space research.

The customer base includes Government arms and notable Indian public and private sector companies including Bharat Electronics Limited (BEL), Hindustan Aeronautics 118 Limited (HAL), Bharat Dynamics Limited (BDL), Hindustan Shipyard Limited (HSL), Electronic Corporation of India Limited (ECIL), Tata Consultancy Services Limited (TCS), Solar Industries India Limited, Alpha Design Technologies Private Limited and Astra-Rafael Comsys Private Limited. The company’s  foreign customers include Advanced Mechanical and Optical Systems (AMOS), Belgium, Tae Young Optics Company Limited (South Korea), and Green Optics (South Korea) etc.

Further, the company partners with international players such as Holland Shielding Systems BV Netherlands, HPS, Gmbh and Invent, Gmbh to provide the company’s customers in India with products and technologies for defence and space applications. The company have been and is currently associated with some of the critical projects in India and abroad.

Products:

Paras Defence manufactures products under five verticals, defence and space optics, defence electronics, heavy engineering for defence; EMP protection solutions, and niche technologies.

I. Defence and Space Optics: manufactures high end optics for defence and space applications.

II. Defence Electronics: The company provides a wide array of computing and electronic systems for defence applications.

III. Heavy Engineering for Defence: Under the heavy engineering for defence operations category, the company provides mechanical manufacturing support to other verticals of our business. Further, under this vertical, Paras Defence provides heavy engineering products and solutions.

IV. EMP Protection Solutions: EMP protection solutions include designing, developing, manufacturing and commissioning various solutions for EMP protection for strategic applications.

V. Niche Technologies: As part of this vertical, Paras Defence aims to source technologies from their exclusive partners in various countries and manufacture products for clients in India and abroad.

Paras Defence and Space Technologies - Financial Status