Paras Defence Launches QIP To Raise Up To Rs 200 Crore

Paras Defence and Space Technologies Ltd. on Tuesday announced the launch of its qualified institutional placement to raise up to Rs 200 crore.

The management committee of the company approved the opening date of the QIP as Oct. 1 and fixed Rs 1,096.35 per share as the floor price, an exchange filing stated.

The floor marks a discount of 1.68% as against the stock's current market price of Rs 1,115.1.

Notably, Paras Defence had secured the nod from its board of directors in August to raise funds in one or more tranches through QIP.

The issue has been launched a day after Paras Defence received an order worth Rs 305 crore from Larsen and Toubro Ltd. The order includes the manufacturing and supply of the 244 Sight–25HD Electro-Optics System, along with extended warranty charges and an integrated logistics support package, for their close-in weapon systems program, or CIWS.

Paras Defence Director Amit Mahajan, while speaking to NDTV Profit in August, said the company is aiming for a 20–30% growth in revenue on a yearly basis.

"In the next five years, maybe it will be higher than that. However, 20–30% is the kind of growth rate you should be looking at from a company like Paras Defence," he said.

The announcement related to the QIP's launch was made by the company after the market hours. During the day's trade, shares of Paras Defence rose as much as 2.73% to Rs 1,140 apiece on the NSE. The scrip pared much of the gains to close 0.98% higher at Rs 1,120.55, compared to a 0.05% decline in the benchmark Nifty 50.

The stock has risen by 55.3% in the last 12 months and by 48.3% year-to-date. The one analyst tracking the company has a "buy" rating on the stock, according to Bloomberg data.