Paras Defense prolongs the rally after its solid start; zooms in 246% on the issue price
Paras Defense and Space Technologies (PDSTL) shares continued their upward movement, reaching 5% for the fourth day in a row on Thursday. The shares hit a high of Rs 606.10 on the BSE today, building on the gains recorded on the day it debuted (October 1, 2021).
By 2:01 pm, a combined share of 140,996 shares had changed hands and there were pending buy orders for 950,000 shares on the NSE and BSE.
With the rally of the past four days, the PDSTL share price has risen 246% from its issue price of Rs 175 per share. The stock was admitted to trading on the Group “T” list of securities, the ESB said in a notice. In the T2T segment, each transaction must give rise to a delivery and no intra-day netting of positions is allowed.
PDSTL is one of the leading private sector companies in the Native Designed, Developed and Manufactured (IDDM) category engaged in the design, development, manufacture and testing of a wide range of products and solutions. defense and space engineering. Indian government spending on these segments is expected to increase by 16% CAGR to over $ 14.5 billion by 2031.
PDSTL is currently developing several new products, such as turnkey underwater periscopes, optical / multi / hyperspectral cameras for drones / space, telescopes, anti-drone systems, etc. and “Make In India” initiatives as well as global requirements.
On Monday, October 4, 2021, PDSTL announced that the credit rating agency ICRA has assigned a rating of “A-” to the long-term scale treasury credit facility obtained from Kotak Mahindra Bank and that the outlook is stable. .
“The rating assigned to PDSTL takes into account the good position of the order book at Rs 305 crore as of June 30, 2021, which translates into a comfortable OB / OI ratio of 2.1 times the operating profit for fiscal year 2021, thus providing visibility into medium-term earnings, “CIFAR said in the scoring rationale.
The rating takes into account favorably the strengthening of the capital structure, liquidity position and hedging measures of the company after the injection of equity of Rs 140 crore during the recent IPO in September 2021. In addition to the early repayment of part of the outstanding debt, the proceeds of the IPO are offered. be used to finance additional working capital requirements, capital expenditure and to extend support to group companies, he added.
PDSTL’s long-standing presence in the defense and space sector has enabled it to establish solid relationships with its customers as well as with its suppliers. The company has developed a strong management and execution team consisting of several former employees of Bharat Electronics Limited (BEL), Defense Research and Development Organization (DRDO), among others, he said. declared.