Paras Defence and Space Technologies Share Makes Stellar Debut at 171% Premium Over IPO Price
Paras Defence and Space Technologies shares made a stunning debut on the stock market on Friday. Paras Defence stock opened at Rs 469 apiece on the NSE, a 168 per cent premium to its higher end of the offer price of Rs 175. The listing price of Paras Defence and Space Technologies share on BSE was at Rs 475, up 171 per cent.
Paras Defence and Space Technologies initial public offering received an overwhelming response from the investors. Paras Defence and Space Technologies IPO was subscribed 304.26 times. The Rs 171-crore public issue received bids of over 217.26 crore shares against the total issue size of over 71.40 lakh shares. The price band of Paras Defence IPO was fixed at Rs 165-175 per share.
Paras Defence and Space Technologies Ltd is one of the leading ‘Indigenously Designed Developed and Manufactured’ (IDDM) category Indian private sector company engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions. The valuation of IPO at a price band of Rs 165-175 per share at p/e multiple of 34x on FY21 PAT basis. “Paras Defence and Space Technologies has wide range of products & solutions for both defence and space applications. Paras Defence Limited being one of the few players in high precision optics manufacturing for space and defence application in India has strong R&D capabilities with focus on innovation & is well positioned to benefit from the government’s Atmanirbhar Bharat and “Make in India” initiatives. Also company’s strong order book gives good revenue visibility going forward,” Hem Securities earlier said in a note.
Paras Defence and Space Technologies offers five principal categories of product —defence and space optics, defence electronics, EMP protection, heavy engineering for defence and niche technologies. Its defence and space optics operations include manufacturing high precision optics for defence and space applications such as thermal imaging and space imaging systems. It is 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 optomechanical assemblies.
The current order book of the company as of June 30, 2021 was ₹3,049.92 million. The consolidated total income was ₹1,446.07 million, ₹1,490.51 million and ₹1,571.69 million for the fiscal years ended March 31, 2021, March 31, 2020 and March 31, 2019, respectively. The consolidated profit after tax was ₹157.86 million, ₹196.57 million and ₹189.70 million for the fiscal years ended March 31, 2021, March 31, 2020 and March 2019, respectively.
It has a diversified customer base which ranges from Government arms and government organizations involved in defence and space research, to various defence public sector undertakings such as Bharat Dynamics Limited, Bharat Electronics Limited and Hindustan Aeronautics Limited, to various private entities such as Tata Consultancy Services, Astra-Rafael Comsys Pvt. Ltd., Solar Industries India Limited, Alpha Design Technologies Private Limited, etc. Company also service international customers including Advanced Mechanical and Optical Systems (AMOS), Belgium, Chaban (Israel), Tae Young Optics Company Limited (South Korea), and Green Optics (South Korea).
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