Paras Defence IPO opens on September 21: 10 key things to know before subscribing

New Delhi: Paras Defence and Space Technologies has announced that the company’s initial public offering (IPO) will open for subscription on September 21. Investors will be allowed to subscribe to Paras Defence and Space Technologies’ IPO till September 23, according to a company statement. The shares of the company would be listed on BSE and NSE. 

Here are the 10 important things that investors should know prior to subscribing to Paras Defence IPO: 

1. Paras Defence IPO price band 

Paras Defence and Space Technologies has fixed the price band at Rs 165-175 for its initial public offering. 

2. Total share sale

The company will allow investors to subscribe to shares worth Rs 171-crore in the initial share sale.

3. Paras Defence IPO total share issuance 

Paras Defence’s 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.

4. Promoters selling shares 

Promoters including Sharad Virji Shah and Munjal Sharad Shah will sell their shares in the offer. Individual selling shareholders also include Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan.

5. Total capital raise 

Paras Defence is aiming to rake in about Rs 170.7 crore at the upper end of the price band with its IPO. 

6. How will Paras Defence utilise funds? 

Paras Defence is planning to invest fresh funds to meet capital expenditure requirements. The proceeds will also be used to support incremental working capital needs and repayment or prepayment of loans availed by the company.

7. Reservation for institutional buyers 

Paras Defence has reserved 50% of the issue for qualified institutional buyers (QIBs). 

8. Reservation for retail and non-institutional investors.

The company has reserved 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors of the total issue. 

9. What does Paras Defence and Space Technologies do? 

Paras Defence and Space Technologies is engaged in designing, developing, manufacturing and testing a wide range of defence and space engineering products and solutions. Also Read: Driving licence update: Delhiites can now change name, date of birth in DL, check list of documents required

10. What factors will fluctuate Paras Defence and Space Technologies share price? 

The company is highly dependent on projects and programmes that are provided by the Central government, defence ministry and associated entities, such as defence public sector undertakings and other organisations involved in space research. Also Read: Google Pixel Fold could launch in late 2021 to rival Samsung Fold 3

- With PTI inputs.