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PARAS DEFENSE IPO

  • Writer: Yash Mehta
    Yash Mehta
  • Sep 20, 2021
  • 2 min read


IPO Details:


Price Band: 165-175

Cutoff Price: 175


About Company:


Paras Defense is an Indian private sector company engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions. They are one of the leading ‘Indigenously Designed Developed and Manufactured’ category private sector companies in India, which cater to four major segments of Indian defence sector, i.e. defence and space optics, defence electronics, electro-magnetic pulse protection solution and heavy engineering. They are also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India.


Competitive Strengths:

  1. Offer a wide range of products and solutions for both defence and space applications;

  2. One of the few players in high-precision optics manufacturing for space and defence application in India;

  3. Strong R&D capabilities with a focus on innovation;

  4. Well positioned to benefit from the Government’s “Atmanirbhar Bharat” and “Make in India” initiatives;

  5. Strong relationships with a diverse customer base; 6) We have an experienced management team.


Strategies:

  1. Expansion of our production capacity;

  2. Strengthen our foothold in India’s expanding market;

  3. Continue to focus on R&D;

  4. Diversified products and solutions range, with a focus on growth by expansion into opportunistic areas;

  5. Increasing our reach in the international market.


Financial Performance:






Revenue, Net Profit and EPS are decreasing year-on-year. Company is net profitable. With EPS of 5.55, the company's P/E is 31.5.


Objects of the Issue:


The Net Proceeds from the Issue are proposed to be utilised in the following manner:

  1. Offer for Sale


Competitors Comparison:


There are no listed competitors of Paras Defense in India.


Grey Market Premium:


Our view: GMP of the IPO is good and the company can't be compared with any trading comparables. I will subscribe to this IPO as only because of good GMP.


Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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