Paras Defence and Space Technologies
Mainboard₹171 Cr issue
+171.43%
Listing gain over issue price
Issue size
₹171 Cr
1 lot at cut-off
₹14,875
Lot size
85shares
Open
21 Sep 2021
Close
23 Sep 2021
Allotment
28 Sep 2021
Listing
01 Oct 2021
Listing performance
Issue price
₹175
Listed at
₹475
Listing-day close
₹498.75
Latest price
₹1,177.20
Close on 23 Oct 2026
Listing gain
+171.43%
Return since issue
+1245.37%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Sep 2021 – 23 Sep 2021
- Listing date
- 01 Oct 2021
- Face value
- ₹10 per share
- Issue price
- ₹175 per share
- Lot size
- 85 shares
- Total issue size
- ₹171 Cr
- Market cap at offer price
- ₹683 Cr
- Promoter holding
- 79.40% → 58.93% pre-issue → post-issue
- ISIN
- INE045601023
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Anand Rathi Advisors Ltd.
- Registered office
- D-112, TTC Industrial Area, MIDC, Nerul, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 29,27,485 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 85 shares per lot, in multiples, at ₹175
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 85 | ₹14,875 |
| Retail (max) | 13 | 1,105 | ₹1,93,375 |
| S-HNI (min) | 14 | 1,190 | ₹2,08,250 |
| S-HNI (max) | 67 | 5,695 | ₹9,96,625 |
| B-HNI (min) | 68 | 5,780 | ₹10,11,500 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
29,27,485
Anchor portion
₹51.23 Cr
at ₹175 per share
Valuation and performance
Valuation at offer price
₹175 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹683 Cr |
About Paras Defence and Space Technologies
Paras Defence and Space Technologies Limited is an Indian private sector company engaged in designing, developing, manufacturing and testing of defence and space engineering products and solutions. The Company was incorporated as 'Paras Flow Form Engineering Limited' in 2009 and subsequently renamed to 'Paras Defence and Space Technologies Limited' in 2016. It is one of the leading 'Indigenously Designed Developed and Manufactured' category private sector companies in India, catering to four major segments of the Indian defence sector: defence and space optics, defence electronics, electromagnetic pulse protection solutions, and heavy engineering. The Company is the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications. The Company operates two manufacturing facilities in Maharashtra—one at Ambernath in Thane for heavy engineering products and one at Nerul in Navi Mumbai for optics manufacturing and integration of electronics and EMP protection products. Revenue for Fiscal 2021 was ₹1,433.30 million with profit after tax of ₹157.86 million.
Company Analysis
from RHPParas Defence and Space Technologies Limited designs, develops, manufactures and tests a wide range of defence and space engineering products and solutions, serving four major segments: defence and space optics, defence electronics, electromagnetic pulse protection solutions, and heavy engineering.
Paras Defence and Space Technologies Limited is an Indian private sector company engaged in designing, developing, manufacturing and testing of defence and space engineering products and solutions. The Company was incorporated as 'Paras Flow Form Engineering Limited' in 2009 and subsequently renamed to 'Paras Defence and Space Technologies Limited' in 2016. It is one of the leading 'Indigenously Designed Developed and Manufactured' category private sector companies in India, catering to four major segments of the Indian defence sector: defence and space optics, defence electronics, electromagnetic pulse protection solutions, and heavy engineering. The Company is the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications. The Company operates two manufacturing facilities in Maharashtra—one at Ambernath in Thane for heavy engineering products and one at Nerul in Navi Mumbai for optics manufacturing and integration of electronics and EMP protection products. Revenue for Fiscal 2021 was ₹1,433.30 million with profit after tax of ₹157.86 million.
Defence and space opticsDefence electronicsElectromagnetic pulse protection solutionsHeavy engineering
Objects of the Issue
- Purchase of machinery and equipment ₹346.57 million p.19
- Funding incremental working capital requirements of our Company ₹600.00 million p.19
- Repayment or prepayment of all or a portion of certain borrowings/outstanding loan facilities availed by our Company ₹120.00 million p.19
- General corporate purposes p.19
- Purchase of machinery and equipment ₹346.57 million p.79
- Funding incremental working capital requirements ₹600.00 million p.79
- Repayment or prepayment of borrowings/outstanding loan facilities ₹120.00 million p.79
- General corporate purposes p.79
- Purchase of machinery and equipment ₹346.57 million p.133
- Purchase of machinery and equipment p.234
- Expansion of production capacity at manufacturing facilities p.235
Issue Structure
- Total Issue
- Up to [●] Equity Shares, aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares, aggregating up to ₹ 1,406.00 million
- Offer for Sale
- Up to 1,724,490 Equity Shares, aggregating up to ₹ [●] million
- Price Band
- [●]
- Lot Size
- [●]
- Face Value
- ₹10 each
Business Model
The Company derives revenue primarily from designing, developing and manufacturing defence and space engineering products and solutions for Indian Government entities (Ministry of Defence, ISRO, DRDO) and private sector customers. For Fiscals 2021, 2020 and 2019, the Company derived 50.84%, 28.75% and 35.62% of revenues respectively from sales to Government of India entities. Most contracts are fixed-price contracts, and the Company typically extends a 12-month warranty period to customers. The Company also generates revenue from multiple business segments including defence optics, defence electronics, EMP protection solutions, and heavy engineering.
Business Segments
Manufacturing of large size optics and diffractive gratings for space applications and defence optics products
Design, development and manufacturing of defence electronics products and solutions
Manufacturing and integration of EMP protection products and solutions
Manufacturing of heavy engineering products at Ambernath facility
Design and manufacture of high-precision components, systems, and assemblies for defence and space applications
Manufacturing high end optics for defence and space applications including infrared lenses for thermal imaging systems and night vision cameras, diffractive gratings for space cameras, large size optics for space imaging systems, optical domes for missile systems, metal mirrors for astronomy and space research, gyroscope components for ring laser and other gyroscope systems, and opto-mechanical assemblies for space and defence applications
Providing a wide array of computing and electronic systems for defence applications including rugged control systems for land and naval defence applications, naval and shelter mounted command and control systems, rugged displays for land and naval defence application, rugged panel personal computers for land, naval and avionic defence applications, rugged communication systems for land and naval defence applications, rugged consoles and wired cabinets for land and naval defence applications, and non-contact proximity sensor for naval applications
Providing mechanical manufacturing support and heavy engineering products and solutions including flow formed tubes for rocket and missile applications, vacuum brazed cold plates for radar applications, remotely controlled border defence system for land defence application, titanium structures and assemblies for naval applications, large and heavy dynamic structures with built-in automation for strategic applications, indigenously designed flow-forming machines, and racks, cabinets and consoles for various land and naval defence applications
Designing, developing, manufacturing and commissioning various solutions for EMP protection for strategic applications including turnkey EMP shielding of a site or control rooms or data centers or command centers, EMP racks and cabinets, high performance EMP filters for power and data, shielded doors meant for electro-magnetic interference and EMP shielding requirements, honeycomb air vents, waveguides and other entry point shielding components, and onsite installation, commissioning and testing
Sourcing technologies from exclusive partners in various countries and manufacturing products for clients in India and abroad including large deployable antennas for space applications, carbon fiber reinforced polymer (CFRP) structures for space applications, avionic suites for commercial and military avionic applications, military winches for land, naval and avionic applications, turret stabilization for tank and infantry vehicle applications, capsule size drones for defence and HLS applications, and CubeSats for various space applications
Conducting manufacturing activities in India for meeting the global requirements of Holland Shielding Systems B.V., Netherlands
Providing drone services and distributing fluke high value testing and calibration systems
Handling space sub-systems and satellites
Manufacturing of optical domes and large optics
Facilitating cost effective global sourcing and offering direct import options to customers
Manufacturing and sale of Flow Formed Rockets/ Missile Motor Tubes, Radar Array cooling assemblies for Naval Applications and Turnkey projects
Manufacturing and sale of Infra Red Lenses for Night Vision Devices, Space Optics/Gratings/Mirrors, Reflex Sights and Precision Diamond Turned components
Defence Automation & Control systems, Rugged Command & Control Consoles and EMP Solutions
designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions
SWOT Analysis
Strengths
- • Leading IDDM category private sector company in Indian defence sector(p.16)
- • Sole Indian supplier of critical imaging components for space applications(p.16)
- • Strong order book position(p.23)
- • Promoter experience in defence sector(p.36)
- • Proximity to customers and efficient vendor-supplier ecosystem(p.40)
- • Insurance coverage maintained at appropriate levels(p.40)
- • Established employee protection and compliance framework(p.40)
- • One-stop integrated solutions across four major defence segments(p.120)
- • Sole Indian supplier of critical space imaging components(p.119)
- • Only Indian company with space-optics design capability and opto-mechanical assemblies(p.122)
- • Established heritage in space missions and earth observation(p.121)
- • Strong R&D capabilities with DSIR recognition(p.122)
- • IDDM category status with highest procurement priority(p.122)
- • Diversified customer base across defence and space sectors(p.123)
- • Experienced management with 41 years and 23 years industry expertise(p.123)
- • ISO certifications and quality accreditations demonstrating compliance standards(p.146)
- • Recognition from defence sector customers for quality and timely delivery(p.146)
- • Established presence in defence and space sectors with multiple capability areas(p.147)
- • Long operational history with predecessor company established in 1979(p.146)
- • Sole Indian supplier of critical space optics components(p.234)
- • Only Indian company with space-optics design capability(p.234)
- • Over four decades of industry experience with established supplier base(p.236)
- • Strong order book and customer confidence(p.237)
- • Specialized EMP protection technology capabilities(p.234)
- • Capability to deliver customized turnkey projects(p.234)
- • Horizontal integration and specialised technology competencies(p.255)
- • Established reliability with ISRO and government customers(p.255)
- • Diverse products and solutions portfolio reducing dependence(p.255)
- • End-to-end solutions differentiating from competition(p.255)
- • No direct competitors in business(p.255)
- • Long-standing supplier relationships(p.255)
Weaknesses
- • High dependence on limited number of customers(p.31)
- • Significant working capital requirements relative to revenue(p.35)
- • High leverage with significant debt obligations(p.37)
- • Negative cash flows from operating and investing activities in past years(p.25)
- • Facilities on leased premises without guaranteed renewal(p.27)
- • Critical regulatory compliance risks for certain products(p.34)
- • Reliance on competitive bidding limiting project selection flexibility(p.40)
- • Insurance coverage gaps for certain business risks(p.40)
- • Dependency on contract labour with potential wage liability exposure(p.41)
- • Unsecured loans subject to recall at any time(p.41)
- • Intangible asset impairment risk from changes in cash flow estimates(p.42)
- • Promoter and director conflicts of interest in land and company interests(p.41)
- • Dependence on South Korea and neighbouring countries for raw materials(p.139)
- • Concentration of revenues in few major customers(p.131)
- • Heavy reliance on government defence and space contracts(p.120)
- • Limited manufacturing capacity at two facilities(p.131)
- • Significant financial debt burden with high borrowings relative to equity(p.181)
- • High finance costs indicating dependence on debt financing(p.182)
- • Concentration of shareholding among promoters reducing independence(p.171)
- • Educational qualification documentation gaps for key personnel(p.155)
- • Pledging of company assets as security for borrowings limiting financial flexibility(p.197)
- • Dependence on few major customers(p.225)
- • Exposure to liquidated damages and performance bank guarantee invocation(p.237)
- • Internal control weaknesses in overhead allocation and KYC procedures(p.227)
- • High dependence on skilled manpower in specialized roles(p.237)
- • Significant increase in finance costs due to extended borrowings(p.248)
- • Concentration of revenue from limited customers(p.255)
- • Significant material creditors with outstanding dues(p.258)
- • Tax claims pending(p.258)
Opportunities
- • Growing Indian defence budget allocation(p.16)
- • Expansion into UAV integration solutions and services(p.24)
- • Growing ISRO space expenditure and programmes(p.23)
- • Government's Make in India and Aatmanirbhar Bharat initiatives(p.23)
- • Cumulative defence market opportunity(p.23)
- • Expansion of manufacturing facilities to increase capacity and efficiency(p.76)
- • Government support for defence and space sector through Make in India and Atmanirbhar Bharat(p.91)
- • Funding incremental working capital for business growth(p.86)
- • Debt reduction to improve financial flexibility and future borrowing capacity(p.87)
- • Enhanced market visibility and credibility through public listing(p.76)
- • Significant growth in defence spending across four key segments(p.121)
- • Atmanirbhar Bharat and Make in India initiatives prioritize domestic manufacturers(p.122)
- • Import embargo on 101 defence items creates market protection(p.122)
- • Expansion of production capacity to meet growing demand(p.124)
- • Growth in space satellite mega-constellations and small-sat market(p.109)
- • International expansion opportunities and export growth(p.125)
- • Partnerships with international technology companies(p.121)
- • ISRO outsourcing satellite manufacturing and serial production(p.113)
- • Expansion into drone systems and services through subsidiary Paras Aerospace(p.146)
- • Development and manufacturing of optics for space sector(p.146)
- • Expansion into EMP and anti-drone technologies through Paras Anti-drone subsidiary(p.146)
- • Expansion of geographic presence into new markets(p.146)
- • Capability to design, develop and manufacture across multiple technology domains(p.147)
- • Government's 'Make in India' initiatives and Defence Acquisition Procedure(p.236)
- • Products on Ministry of Defence Import Embargo List(p.236)
- • Growing domestic private space ecosystem(p.236)
- • Expansion of production capacity and manufacturing facilities(p.238)
- • Significant opportunity to expand defence product portfolio(p.236)
- • Market share capture through geographic expansion(p.236)
- • Expected intensification of competition driving innovation(p.256)
- • Large addressable market in defence programmes with local sourcing(p.255)
- • Support to major Tier 1 Indian defence suppliers(p.255)
- • Cyclical business driven by government procurement procedures(p.256)
Threats
- • Heavy reliance on GoI and associated entities for revenue(p.22)
- • Risk of decline or reprioritisation of defence and space budgets(p.23)
- • Vulnerability to cost overruns on fixed-price contracts(p.25)
- • Exposure to raw material price volatility and supply disruptions(p.29)
- • Intense price competition in defence and space sector(p.39)
- • Increased competition from larger, better-resourced competitors(p.39)
- • COVID-19 pandemic uncertainty and operational disruption risks(p.30)
- • Labour law stringency increasing compliance costs and operational constraints(p.40)
- • Labour shortage and wage inflation pressures(p.41)
- • Foreign exchange volatility without hedging arrangements(p.42)
- • Export restrictions and regulatory controls on defence and space products(p.42)
- • Economic slowdown and macro-level shocks impacting defence and space demand(p.44)
- • Pandemics and business interruption risks beyond management control(p.44)
- • Capital expenditure delays and cost overruns in facility expansion(p.42)
- • Government procurement delays and execution uncertainty(p.99)
- • Competition from established international defence companies(p.101)
- • Regulatory framework uncertainty for space activities(p.141)
- • Geopolitical tensions and defence spending uncertainty(p.98)
- • COVID-19 pandemic disrupting supply chains and operations(p.139)
- • Increasing market competition in defence electronics and optics(p.135)
- • Foreign exchange volatility affecting imports and exports(p.97)
- • Regulatory compliance requirements for hazardous chemical handling and air pollution control(p.143)
- • Extensive labour law compliance requirements across multiple jurisdictions(p.144)
- • Public liability insurance requirements for handling hazardous substances(p.143)
- • Foreign exchange regulation restrictions on cross-border transactions(p.145)
- • Complex noise pollution control requirements in operating zones(p.143)
- • Supply chain disruptions from foreign suppliers due to geopolitical risks(p.238)
- • Vulnerability to raw material price fluctuations(p.236)
- • Shifts in government defence spending priorities and policies(p.236)
- • Increased competition from new market entrants and international players(p.236)
- • Delays, cancellations or renegotiations of defence contracts(p.237)
- • Ongoing impact and uncertainty of COVID-19 pandemic on operations(p.223)
- • Long gestation periods in defence contract execution(p.237)
- • Foreign exchange rate fluctuations(p.254)
- • Customer credit risk and working capital impact(p.254)
- • Competitive landscape challenges difficult to predict(p.256)
- • Reliance on working capital financing(p.254)
- • Regulatory and compliance risks(p.254)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sharad Virji Shah | Promoter | 27.54% | — |
| Munjal Sharad Shah | Promoter | 31.99% | — |
| Sharad Virji Shah | Promoter | 27.53% | — |
| Munjal Sharad Shah | Promoter | 32.00% | — |
| Sharad Virji Shah | Promoter/Chairman | — | — |
| Sharad Virji Shah | Promoter | 27.53% | — |
| Munjal Sharad Shah | Promoter | 32.00% | — |
| Sharad Shah | Chairman and Director | — | — |
| Munjal Shah | Managing Director | — | — |
Leadership
Sharad Virji Shah · Chairman/Promoter
Munjal Sharad Shah · Managing Director/Promoter
Ajit Sharma · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Paras Defence and Space Technologies IPO FAQs
What is the lot size of Paras Defence and Space Technologies IPO?
The minimum lot size of Paras Defence and Space Technologies IPO is 85 shares. One lot costs ₹14,875 at the cut-off price.
When does Paras Defence and Space Technologies IPO open and close?
Paras Defence and Space Technologies IPO opened for subscription on 21 Sep 2021 and closed on 23 Sep 2021.
What is the listing date of Paras Defence and Space Technologies IPO?
Paras Defence and Space Technologies IPO listed on 01 Oct 2021.