Paras Defence said in a statement that its three-day initial public offering (IPO) will open for subscription on September 21 and conclude on September 23. Paras Defence and Space Technologies has fixed a price band of ₹165-175 a share for its ₹171-crore initial share sale.
Here are 10 things to know about Paras Defence IPO:
1. Paras Defence IPO comprises fresh issuance of shares worth ₹140.6 crore and an offer of sale (OFS) of up to 17,24,490 equity stocks by promoters and existing shareholders.
2. Promoters Sharad Virji Shah and Munjal Sharad Shah are selling shares on the OFS and Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan are individuals selling shareholders.
3. The IPO is expected to fetch ₹170.7 crore at the upper end of the price band.
4. Paras Defence said that 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.
5. 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.
{{/usCountry}}5. 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.
{{/usCountry}}6. Investors can bid for a minimum of 85 equity shares and in multiples of 85 equity shares thereafter.
7. Paras Defence is engaged in designing, developing, manufacturing and testing a wide range of defence and space engineering products and solutions.
8. 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.
9. Anand Rathi Advisors is the book running lead manager to the issue.
10. The equity shares of Paras Defence would be listed on BSE and the National Stock Exchange (NSE).