Paras Defence IPO, Should you Subscribe or Avoid

 Paras Defence and Space Technologies IPO, should you subscribe or not?

The IPO of Paras Defence and Space Technologies will be open from September 21, 2021 to September 23 2021. Should you subscribe to Paras Defence and Space Technologies IPO or not? Let us try to answer this in a simple language today. Paras Defence and Space Technologies' IPO price band is 165rs to 175rs and the company will try to raise near 171cr through IPO. Out of this, the nearly 140cr will remain a fresh issue and the rest will be sold through offer for sale. Through the offer for sale, the company and other shareholders 30cr will sell their share fresh from the offer for sale at 10% per face value of the share. Paras Defence and Space Technologies IPO will be listed on both BSE & NSE exchanges. Paras Defence and Space Technologies IPO will have a lot size of 85 shares per lot and minimum 1 lot size can be bid. The company's management came to the media and told about the business model of the company and they felt confident.

Why Paras Defence IPO should you Subscribe?

Paras Defence and Space Technologies Ltd. The company does business in mainly 4 verticals. Talking about the first vertical, it is optics, talking about the second vertical, then electronics, 3rd vertical heavy engineering and if we talk about the 4th vertical, then the interesting vertical seems to be that vertical's name is electromagnetic pulse protection.

According to the company's management, in the first vertical of business, the company makes lenses in it, speaking in easy language, the company uses all the lenses used to monitor and see all the satellites of ISRO going on missions. The company of Paras Defence and Space Technologies manufactures O. Apart from this; the lenses used by him in the company's commerce are manufactured by the company of Paras Defence and Space Technologies. Talking about the clients of the company, big companies like Bharat Electronics ltd, BDL, HAL are the clients of this company. This company has business and product sales mainly in the government sector. In this way the balance sheet of the company would be fine. We will discuss on this too. The business model of the company is Designing, Developing, and Manufacturing & Testing of Defence & Engineering Space Products. The company also has manufacturing units in Navi Mumbai & Thane and the company is seeing huge growth in the electronics business in the coming few years.

Paras Defence and Space Technologies Order book & Financials:

The company's business also does business in Belgium, Israel and South Korea. By doing more, the company's focus is in the Defence & Space sector, but the company also works in other sectors. Talking about the order book of the company, till the end of June, it has exceeded 300cr. Out of which the company's management said that the business of 200 crore has come from the defence segment and up to 90 crore have come from the orders from the near space segment. In this way, more than 70% of the business of the company depends on the defence sector and the rest of the business comes from the space sector. The company deals in optics and electronics good in exports, most of the focus is in the Indian market. The export business is being expanded from the subsidiary companies of Paras Defence, according to the company management. One thing Paras Defence and Space Technologies Ltd. liked the management of the company that the company is talking about starting a business in drone tech. And exports will also be done.

  Talking about the financials of Paras Defence and Space Technologies Company, in March 2019, the total revenue was more than 1570 crore, but till March 2021, the total revenue has decreased slightly which has been near 1447 crore. Talking about the total assets of the company, in March 2019 it was close to 3300 million but in March 2021 it is more than 3620 million.

if you look at the company's higher price band from 175 rs, then the earning is at 43 multiples. Whatever the government's focus in Indian will remain in "Make in India" and this company will also get the benefit of the government's PLI scheme.

If you look at the company's higher price band from 175rs, then the earning is at 43 multiples. Whatever the government's focus in Indian will remain in "Make in India" and this company will also get the benefit of the government's PLI scheme.

 Also read: Sansera Engineering IPO, should you subscribe or avoid

Grey Market Premium and Price of Paras Defence IPO:

Paras Defence IPO is seen in the grey market at a premium of 120% to 125%, but this cannot be considered as the final premium because tomorrow the issue will be open. The premium for Paras Defence IPO can be higher and a little less in the grey market. But Paras Defence IPO can be expected to get a lot of reps. If we look at the premium, then the higher price band of Paras Defence IPO is getting a premium of 200 rs to 220 rs on the higher price band of 175 rs per share, which can be considered a very high premium. After all these discussions, it can be said that everyone can subscribe to the IPO of Paras Defence, whether they are long term investors or traders, both can subscribe to the IPO of Paras Defence. Paras Defence IPO may subscribe multiple times. Paras Defence IPO Looks very good for subscribe for long term investment. 

Disclaimer: The above discussion on Paras Defence IPO is my personal view. Please do your own research before taking any decision. My view may differ from other experts of the market