March 9, 2021: Paras Defense And Space Technologies Ltd., one of the ‘Indigenously Designed Developed and ManufacturedCompany’ (IDDM) category private sector company in India, primarily engaged in designing, developing, manufacturing and testing of a wide range of defense and space engineering products and solutions; has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator for IPO.

The Issue will comprise of a Fresh Issuance of equity shares aggregating up to Rs 120 cr and an Offer For Sale of up to 17,24,490 equity shares by Promoter Selling Shareholders and Individual Selling Shareholders. The Company, in consultation with BRLMs, may consider a pre-ipo placement of equity shares for cash consideration aggregating up to Rs. 35 crore; further to which particular amount raised from the pre-ipo placement will not be reduced from the fresh issue.

The Company intends to utilize the net proceeds from the Fresh Issue towards purchase of machinery and equipment, funding incremental working capital requirements, repaying of certain borrowings and for general corporate purposes.

As per the F&S Report, Paras Defense And Space Technologies Ltd., is amongst India’s leading private sector Company catering to four major segments of Indian Defence Sector namely defence and space optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution, and heavy engineering. Paras Defense is the sole Indian supplier of critical imaging components which also offers niche technologies through its product offerings. The Company manufactures high precision optics for the defense and space applications such as thermal imaging and space imaging systems. As per the F&S Report, it is the only Indian Company to have the design capability for space-optics and opto-mechanical assemblies.

The Mumbai based Company has contributed towards various space and defence programmes by providing optics; and under its defence electronics operations it has managed to provide a wide array of high performance computing and electronic systems for defence applications, including sub systems for border defence, missiles, tanks and naval applications. The Company has undertaken and delivered customized turnkey projects specializing in the defence electronics and EMP protection segments backed by specialized technology capabilities. Currently, the Company operates through two manufacturing facilities in Maharashtra, located at Nerul (Navi Mumbai) and Ambernath (in Thane).

 At the domestic front, Paras Defense’s customer base ranges from PSUs to various defense public sector undertakings like Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL) and Hindustan Aeronautics Limited (HAL); and has supplied products and solutions to private entities including Tata Consultancy Services Ltd., and Alpha Design Technologies Ltd. The Company has also catered to foreign customers like Advanced 138 Mechanical and Optical Systems (AMOS), Belgium, Chaban (Israel), Tae Young Optics Company Limited (South Korea), and Green Optics (South Korea).

The consolidated total income stands at ₹ 379.40 million for the six-month period ended September 30, 2020, and ₹1,490.51 million, ₹1,571.69 million and ₹1,525.33 million for the fiscal years ended March 31, 2020, 2019 and 2018, respectively. Consolidated profit after tax was ₹(1.39) million for the six month period ended September 30, 2020, and ₹196.57 million, ₹189.70 million and ₹250.80 million for the fiscal years ended March 31, 2020, 2019 and 2018, respectively.

The portion reserved for Qualified Institutional Buyers will be upto 50% of the offer, Non-Institutional Investors to have upto 15% of the portion reserved while upto 35% will be reserved for the Retail Investors.

Anand Rathi Advisors Ltd. is the Book Running Lead Manager to the issue.