Paras Defence stock is in focus on October 8 as the company successfully closed its Qualified Institutional Placement (QIP) issue. The defence and space tech firm raised funds by allotting 12.93 lakh equity shares at a price of Rs 1,045 per share, including a premium of Rs 1,035 to institutional investors.
The process began on October 1, and with the issue now complete, Paras Defence looks to utilize the proceeds to strengthen its financial position. At 9:18 am, the stock was down marginally in the red at Rs 1,015.95.
The QIB issue was 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.
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Earlier in August, along with the QIP approval, Paras Defence also left options open to raise funds via other modes like a private or public offering of equity shares or any other convertible securities. The fundraising may happen in one or more tranches.
Paras Defence manufactures defence electronics and space application products. It offers rockets, telescopes, guns and ammunition among other special-purpose machineries. The company also recently secured an industrial license to establish an industrial undertaking in Navi Mumbai.
In the previous session, shares of Paras Defence closed 3.8 percent lower at Rs 1,031 on the Nationa Stock Exchange (NSE). The stock has risen around 36 percent so far this year, outperforming benchmark Nifty's returns of 15 percent.
In the past 12 months, the counter has rallied 44 percent. In comparison, Nifty's gained around 28 percent during this period.
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