Paras Defence and Space Technologies files DRHP for IPO

Paras Defence and Space Technologies Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for its initial public offer (IPO).

The company's offer comprises of issue of fresh equity shares aggregating up to Rs 120 crore and an offer for sale for 17.24 lakh shares by the existing shareholders. The company is also considering a pre-IPO placement of up to Rs 35 crore, as per the DRHP.

It plans to use the proceeds from IPO for purchasing machinery and equipment, funding incremental working capital requirements, repayment or prepayment of all or a portion of certain borrowings and outstanding loan availed and general corporate purposes.

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Paras Defence and Space Technologies is a private sector company engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solution. It caters to four major segments of Indian defence sector -- defence and space optics, defence electronics, electro-magnetic pulse protection solution and heavy engineering.

It is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India.

The Navi Mumbai-based company has two manufacturing facilities in Maharashtra, located at Nerul in Navi Mumbai and Ambernath in Thane.

Anand Rathi Advisors is the book running lead manager to the issue, while Link Intime India Private is the registrar to the offer.

Paras Defence and Space Technologies' consolidated total income stood at Rs 149.05 crore during the year ended March 2020, while its profit after tax during the year stood at Rs 19.66 crore.

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