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Updated on: Monday, September 20, 2021, 09:52 PM IST

Paras Defence and Space Technologies raises Rs 51 cr from anchor investors ahead of IPO

PTI
Paras Defence and Space Technologies has allotted 29,27,485 equity shares to anchor investors at Rs 175 apiece/ Representational image |

Paras Defence and Space Technologies has allotted 29,27,485 equity shares to anchor investors at Rs 175 apiece/ Representational image |

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Paras Defence and Space Technologies on Monday said it has garnered a little over Rs 51 crore from anchor investors, ahead of its initial public offering (IPO) from Tuesday.

The company has allotted 29,27,485 equity shares to anchor investors at Rs 175 apiece, valuing the transaction at Rs 51.23 crore, according to a circular uploaded on the BSE website.

Ashoka India Equity Investment Trust Plc, Abakkus Emerging Opportunities Fund-1, Saint Capital Fund, Nippon India Mutual Fund and HDFC Mutual Fund participated in the anchor book, it showed.

The IPO 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.

Those selling shares on the OFS are promoters-- Sharad Virji Shah, Munjal Sharad Shah and individual selling shareholders are -- Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan.

The issue, with a price band of Rs 165-175 a share, will open for public subscription during September 21-23.

At the upper end of the price band, the IPO is expected to fetch Rs 170.7 crore.

Proceeds of the fresh issue would be used to fund capital expenditure requirements, to support incremental working capital needs and repayment or prepayment of loans availed by the company.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 85 equity shares and in multiples of 85 equity shares thereafter.

The company is engaged in designing, developing, manufacturing and testing a wide range of defence and space engineering products and solutions.

Paras Defence and Space Technologies'' business is highly dependent on projects and programmes undertaken by the central government and associated entities, such as defence public sector undertakings and government organisations involved in space research.

Anand Rathi Advisors is the book running lead manager to the issue. The equity shares of the company would be listed on BSE and NSE.

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Published on: Monday, September 20, 2021, 09:52 PM IST
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