September 21, 2021 - September 23, 2021

Paras Defence and Space Technologies IPO Basis of Allotment

PARAS DEFENCE AND SPACE TECHNOLOGIES LIMITED

Our Company was incorporated as "Paras Flow Form Engineering Limited" under the Companies Act, 1956, at Mumbai, pursuant to a certificate of incorporation dated June 16, 2009, issued by the Registrar Companies, Maharashtra at Mumbai ("RoC"). Our Company received the certificate for commencement of business on July 24, 2009. Subsequently, the name of our Company was changed to "Paras Flowform Engineering Limited" pursuant to a resolution passed by our Shareholders in an EGM held on September 22, 2009 and a fresh certificate of incorporation, dated September 25, 2009 was issued by the RoC. Further, the name of our Company was changed to "Paras Defence and Space Technologies Limited" pursuant to a resolution passed by our Shareholders in an extraordinary general meeting held on December 2, 2015 and a fresh certificate of incorporation, dated January 29, 2016 was issued by the RoC. For details pertaining to the change in our name and the address of ou^r Registered Office, see ‘History and Certain Corporate Matters' beginning on page 143 of the Prospectus dated September 25, 2021 ("Prospectus").

Registered and Corporate Office: D-112, TTC Industrial Area, MIDC, Nerul, Navi Mumbai 400 706, Maharashtra, India;
Contact Person: Ajit Sharma, Company Secretary and Compliance Officer;
Tel: +91 22 6919 9999; E-mail: ir@parasdefence.com, Website: www.parasdefence.com;
Corporate Identity Number: U29253MH2009PLC193352

OUR PROMOTERS: SHARAD VIRJI SHAH AND MUNJAL SHARAD SHAH

Our Company has filed the Prospectus dated September 25, 2021 with the RoC, and the Equity Shares are proposed to be listed on the National Stock Exchange of India Limited ("NSE") and BSE Limited ("BSE") and trading is expected to commence on Octooer 1, 2021

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF UP TO 9,758,776 EQUITY SHARES OF FACE VALUE OF Rs 10 EACH ("EQUITY SHARES") OF PARAS DEFENCE AND SPACE TECHHNOLOGIES LIMITED (THE "COMPANY") FOR CASH AT A PRICE OF Rs 175 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs 165 PER EQUITY SHARE) ("OFFER PRICE") AGGREGATING UP TO Rs 1,707.78 MILLION ("OFFER") COMPRISING OF A FRESH ISSUE OF UP TO 8,034,286 EQUITY SHARES AGGREGATING UP TO Rs 1,406.00 MILLION BY OUR COMPANY ("FRESH ISSUE") AND AN OFFER FOR SALE OF UP TO 1,724,490 EQUITY SHARES AGGREGATING UP TO Rs 301.78 MILLION ("OFFER FOR SALE"), COMPRISING OF UP TO 1,250,000 EQUITY SHARES AGGREGATING UP TO Rs 218.75 MILLION BY SHARAD VIRJI SHAH, UP TO 50,000 EQUITY SHARES AGGREGATING UP TO Rs 8.75 MILLION BY MUNJAL SHARAD SHAH (SHARAD VIRJI SHAH AND MUNJAL SHARAD SHAH COLLECTIVELY REFERRED TO AS THE "PROMOTER SELLING SHAREHOLDERS"), UP TO 300,000 EQUITY SHARES AGGREGATING UP TO Rs 52.50 MILLION BY AMI MUNJAL SHAH, UP TO 62,245 EQUITY SHARES AGGREGATING UP TO Rs 10.89 MILLION BY SHILPA AMIT MAHAJAN AND UP TO 62,245 EQUITY SHARES AGGREGATING UP TO Rs 10.89 MILLION BY AMIT NAVIN MAHAJAN (AMI MUNJAL SHAH, SHILPA AMIT MAHAJAN AND AMIT NAVIN MAHAJAN COLLECTIVELY REFERRED TO AS THE "INDIVIDUAL SELLING SHAREHOLDERS" AND TOGETHER WITH THE PROMOTER SELLING SHAREHOLDERS, REFERRED TO AS THE "SELLING SHAREHOLDERS", SUCH EQUITY SHARES THE "OFFERED SHARES").

OFFER PRICE: Rs 175 PER EQUITY SHARE OF FACE VALUE OF Rs 10 EACH
THE OFFER PRICE IS 17.50 TIMES OF THE FACE VALUE

	Risks to Investors:
•	The Book Running Lead Manager associated with the Offer has not handled any public issues in the past three years.
•	The Price/ Earnings ratio based on diluted EPS for Fiscal 2021 for the Company at the upper end of the Price Band is as high as 31.53.
•	Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 11.94%.
•	Average Cost of acquisition of Equity Shares for the Selling Shareholders, namely Sharad Virji Shah, Munjal Sharad Shah, Ami Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan, is Rs 1.21, Rs3.36, Rs0.00, Rs0.00 and Rs 0.00, respectively, and the Offer Price at the upper end of the Price Band is Rs 175 per Equity Share

BID/OFFER PROGRAMME
BID/OFFER OPENED ON TUESDAY, SEPTEMBER 21, 2021
BID/OFFER CLOSED ON THURSDAY. SEPTEMBER 23, 2021
BID/OFFER CLOSED ON THURSDAY, SEPTEMBER 23, 2021

The Offer was made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (the "SCRR") read with Regulation 31 of the SEBI ICDR Regulators. The Offer was made through the Book Building Process, in compliance with Regulation 6(1) of the SEBI ICDR Regulations, where not more than 50% of the Offer was available for allocation on a proportionate basis to Qualified Institutional Buyers "QIBs" and such portion, the "QIB Portion"). Our Company and the Selling Shareholders in consultation with the BRLM, allocated 60% of the QIB Portion to Anchor Investors, on a discretionary basis in accordance with the SEBI ICDR Regulations ("Anchor Investor Portion"), of which ore-third was reserved for domestic Mutual Funds, subject to valid Bids having been received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the Net QIB Port on (excluding the Anchor Investor Portion) was made available for allocation on a proportionate basis only to Mutual Funds and the remainder of the Net QIB Portion was made available 'or allocation on a proportionate oasis to all QIBs (other than Anchor Investors), including Mutual Funds subject to valid Bids having been received a: or above the offer Price. Further, not ess than 15% of the Offer was made available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer was made available for allocation to Retail individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids having been received at or above the Offer Price. All potential Bidders (other than Anchor Investors) mandatorily participated in this Offer through the Application Supported by Blocked Amount ("ASBA") process, and provided details of their respective ASBA Accounts (as defined hereinafter), and UPI ID in case of RIBs using UPI Mechanism, if applicable, in which the corresponding Bid Amounts were blocked by the Self- Certified Syndicate Banks ("SCSBs") or the Sponsor Bank, as the case may be. to the extent of respective Bid Amounts. Anchor Investor were not permitted to participate in the Offer through the ASBA process. For details, see, "Offer Procedure" beginning on page 275 of the Prospectus.

The bidding for Anchor Investors opened and closed on Monday. September 20, 2021. The Company received 5 Anchor investor Application Forms from 5 Anchor Investors (including 2 mutual funds through 2 Mutual Fund schemes) for 3,380,280 Equity Shares. The Anchor investor price was finalized at Rs 175 per Equity Share. A total of 2,927,485 Equity Shares were allocated under the Anchor Investor Portion aggregating to Rs 512,309,875.00.

The Offer received 3,217,604 applications for 2,113,683,440 Equity Shares resulting in 309.4120 times subscription. The details of the applications received in the Offer from various categories are as under (before technical rejections):

Category	No. of Applications applied	No. of Equity Shares	Shares Reserved as per Prospectus	No. of times Subscribed	Amount (Rs)
Retail Individual Investors	3,207,377	361,873,645	3,415,572	105.9482	63,335,144,540.00
Non-Institutional Investors	10,143	1,409,498,560	1,463,817	962.8926	246,660,274,045.00
QIB (excluding Anchor Investors)	84	342,311,235	1,951,902	175.3732	59,904,466,125.00
TOTAL	3,217,604	2,113,683,440	6,831,291	309.4120	369,899,884,710.00

Final Demand

A summary of the final demand as per BSE and NSE as on the Bid/Offer Closing Date at different Bid prices is as under:

Bid Price	No. of Equity Shares	% to Total	Cumulative Total	Cumulative % of Total
165	3,775,275	0.17	3,775,275	0.17
166	315,265	0.01	4,090,540	0.19
167	170,595	0.01	4,261,135	0.19
168	246,415	0.01	4,507,550	0.21
169	150,960	0.01	4,658,510	0.21
170	2,691,525	0.12	7,350,035	0.34
171	188,275	0.01	7,538,310	0.34
172	286,110	0.01	7,824,420	0.36
173	874,310	0.04	8,698,730	0.40
174	1,155,575	0.05	9,854,305	0.45
175	1,867,291,900	85.43	1,877,146,205	85.88
CUT-OFF	308,655,570	14.12	2,185,801,775	100.00
TOTAL	2,185,801,775	100.00

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE, on September 28,2021.

A. Allotment to Retail Individual Investors (After Technical Rejections)

The Basis of Allotment to the Retail Individual Investors, who have bid at the Cut-off/Offer Price of Rs. 175 per Equity, was finalized in consultation with BSE. This category has been subscribed to the extent of 100.8021 times. The total number of Equity Shares Allotted in Retail Individual Bidders category is 3,415,572 Equity Shares to 40,183 successful applicants. The category-wise details of the Basis of Allotment are as under:

Category	No. of Applications Received	% of Total	Total No. of Equity Shares applied	% to Total	No. of Equity Shares allotted per Bidder	Ratio	Total No. of Equity Shares allotted
85	2,737,331	89.46	232,673,135	67.58	85	6:457	3,055,580
170	169,537	5.54	28,821,290	8.37	85	6:457	189,210
255	49,282	1.61	12,566,910	3.65	85	6:457	54,995
340	23,269	0.76	7,911,460	2.30	85	6:457	26,010
425	18,214	0.60	7,740,950	2.25	85	6:457	20,315
510	10,271	0.34	5,238,210	1.52	85	6:457	11,475
595	7,108	0.23	4,229,260	1.23	85	6:457	7,905
680	2,990	0.10	2,033,200	0.59	85	6:457	3,315
765	1,877	0.06	1,435,905	0.42	85	6:457	2,125
850	7,966	0.26	6,771,100	1.97	85	6:457	8,925
935	1,539	0.05	1,438,965	0.42	85	6:457	1,700
1020	2,622	0.09	2,674,440	0.78	85	6:457	2,890
1105	27,839	0.91	30,762,095	8.93	85	6:457	31,110
	4235 Allottees from Serial no 2 to 13 Additional 1 (one) share					17:4235	17
TOTAL	3,059,845	100.00	344,296,920	100.00			3,415,572

B. Allotment to Non Institutional Investors (After Technical Rejections)

The Basis of Allotment to the Non-lnstitutional Investors, who have bid at the Offer Price of Rs 175 per Equity Share was finalized in consultation with BSE. This category has been subscribed to the extent of 954.8806 times. The total number of Equity Shares allotted in this category is 1,463,817 Equity Shares to 1,880 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sample)

Category	No. of Applications Received	% of Total	Total No. of Equity Shares applied	% to Total	No. of Equity Shares allotted per Bidder	Ratio	Total No. of Equity Shares allotted
1,190	2496	25.99	2,970,240	0.21	85	37:2496	3,145
1,275	655	6.82	835,125	0.06	85	10:655	850
1,360	150	1.56	204,000	0.01	85	3:150	255
1,445	117	1.22	169,065	0.01	85	2:117	170
1,530	77	0.80	117,810	0.01	85	1:77	85
1,615	31	0.32	50,065	0.00	85	1:31	85
1,700	394	4.10	669,800	0.05	85	8:394	680
1,785	105	1.09	187,425	0.01	85	2:105	170
1,870	36	0.37	67,320	0.00	85	1:36	85
1,955	27	0.28	52,785	0.00	85	1:27	85
2,040	53	0.55	108,120	0.01	85	1:53	85
2,125	105	1.09	223,125	0.02	85	3:105	255
2,210	77	0.80	170,170	0.01	85	2:77	170
2,295	89	0.93	204,255	0.01	85	3:89	255
2,380	52	0.54	123,760	0.01	85	2:52	170
2,465	9	0.09	22,185	0.00	85	0:9	0
2,550	171	1.78	436,050	0.03	85	5:171	425
2,635	20	0.21	52,700	0.00	85	1:20	85
2,720	28	0.29	76,160	0.01	85	1:28	85
2,805	180	1.87	504,900	0.04	85	6:180	510
2,890	106	1.10	306,340	0.02	85	4:106	340
2,975	87	0.91	258,825	0.02	85	3:87	255
3,060	51	0.53	156,060	0.01	85	2:51	170
3,145	16	0.17	50,320	0.00	85	1:16	85
3,230	15	0.16	48,450	0.00	85	1:15	85
3,315	30	0.31	99,450	0.01	85	1:30	85
3,400	135	1.41	459,000	0.03	85	6:135	510
3,485	21	0.22	73,185	0.01	85	1:21	85
3,570	26	0.27	92,820	0.01	85	1:26	85
3,655	8	0.08	29,240	0.00	85	0:8	0
3,740	17	0.18	63,580	0.00	85	1:17	85
3,825	24	0.25	91,800	0.01	85	1:24	85
3,910	15	0.16	58,650	0.00	85	1:15	85
3,995	25	0.26	99,875	0.01	85	1:25	85
4,080	17	0.18	69,360	0.00	85	1:17	85
4,165	9	0.09	37,485	0.00	85	0:9	0
4,250	92	0.96	391,000	0.03	85	5:92	425
4,335	16	0.17	69,360	0.00	85	1:16	85
4,420	25	0.26	110,500	0.01	85	1:25	85
4,505	24	0.25	108,120	0.01	85	1:24	85
4,590	28	0.29	128,520	0.01	85	2:28	170
4,675	17	0.18	79,475	0.01	85	1:17	85
4,760	12	0.12	57,120	0.00	85	1:12	85
4,845	15	0.16	72,675	0.01	85	1:15	85
4,930	16	0.17	78,880	0.01	85	1:16	85
5,015	10	0.10	50,150	0.00	85	1:10	85
5,100	80	0.83	408,000	0.03	85	5:80	425
5,185	19	0.20	98,515	0.01	85	1:19	85
5,270	6	0.06	31,620	0.00	85	0:6	0
5,355	12	0.12	64,260	0.00	85	1:12	85
5,440	14	0.15	76,160	0.01	85	1:14	85
5,525	46	0.48	254,150	0.02	85	3:46	255
5,610	16	0.17	89,760	0.01	85	1:16	85
5,695	136	1.42	774,520	0.06	85	10:136	850
5,780	56	0.58	323,680	0.02	85	4:56	340
5,865	13	0.14	76,245	0.01	85	1:13	85
5,950	69	0.72	410,550	0.03	85	5:69	425
6,035	11	0.11	66,385	0.00	85	1:11	85
6,120	11	0.11	67,320	0.00	85	1:11	85
6,205	7	0,07	43,435	0.00	85	1:7	85
6,290	18	0.19	113,220	0.01	85	1:18	85
6,375	28	0,29	178,500	0.01	85	2:28	170
6,460	2	0.02	12,920	0.00	85	0:2	0
6,545	8	0.08	52,360	0.00	85	1:8	85

C. Allotment to QIBs (After Technical Rejections)

Allotment to QIBs, who have bid at the Offer Price of Rs 175 per Equity Share has been done in consultation with BSE. This category has been subscribed to the extent of 175.3732 times of Net QIB portion. As per the SEBI Regulations, Mutual Funds were allotted 5% of the Equity Shares of Net QIB portion available i.e. 97,596 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i.e. 1,854,306 Equity Shares on a proportionate basis. The total number of Equity Shares allotted in the QIB category is 1,951,902 Equity Shares, which were allotted to 84 successful Applicants.

CATEGORY	FIS/BANKS	MF'S	IC'S	NBFC'S	AIF	FPC	VC'S	TOTAL
ALLOTMENT	778,954	124,237	7,431	533,120	97,393	407,671	3,096	1,951,902

D. Allotment to Anchor Investors

The Company with the consent of the Selling Shareholders, in consultation with the BRLM, have allocated 2,927,485 Equity Shares to 5 Anchor Investors (through 5 Applications) at the Anchor Investor Offer Price of Rs 175 per Equity Share in accordance with the SEBI Regulations. This represents 60% of the QIB Portion.

CATEGORY	FIS/BANKS	MF'S	IC'S	NBFC'S	AIF	FPC	OTHERS	TOTAL
ALLOTMENT	-	975,885	-	-	665,805	1,285,795	-	2,927,485

The IPO Committee of our Company at its meeting held on September 29, 2021 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has allotted the Equity Shares to various successful applicants. The Allotment Advice Cum Refund Intimation will be dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Offer Account on Tuesday, September 28, 2021 and the payments to non-syndicate brokers have been issued on Wednesday, September 29, 2021. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on Wednesday, September 29, 2021 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is in the process of obtaining the listing and trading approval from BSE, and trading is expected to commence on or about Friday, October 1, 2021.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of the Registrar to the Offer, Link Intime India Private Limited at www.linkintime.co.in.

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the first/sole applicant, serial number of the ASBA form, number of Equity Shares bid for, name of the member of the syndicate, place where the bid was submitted and payment details at the address given below:


Link Intime India Private Limited
C-101,247 Park, 1st Floor, L.B.S. Marg, Vikhroli (West), Mumbai 400 083 Maharashtra, India.
Tel: +91 22 4918 6200;
E-mail: parasdefence.ipo@linkintime.co.in Website: www.linkintime.co.in Investor Grievance ID: parasdefence.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan; SEBI Registration Number: INR000004058

	For PARAS DEFENCE AND SPACE TECHNOLOGIES LIMITED
	On behalf of the Board of Directors
Date: Thursday, September 30, 2021	Sd/-
Place: Navi Mumbai	Company Secretary & Compliance Officer

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF PARAS DEFENCE AND SPACE TECHNOLOGIES LIMITED

PARAS DEFENCE AND SPACE TECHNOLOGIES LIMITED has filed the Prospectus with the RoC on September 25, 2021 and thereafter with SEBI and the Stock Exchanges. The Prospectus is available on the website of the SEBI at www.sebi.gov.in as well as on the website of the Book Running Lead Manager, i.e., Anand Rathi Advisors Limited, at www.rathi.com and Stock Exchanges at www.nseindia.com and www.bseindia.com. Investors should note that investment in the Equity Shares involves a high degree of risk and for details relating to such risks, see "Risk Factors" on page 19 of the Prospectus.

This announcement does not constitute an offer of Equity Shares for sale in any jurisdiction, including the United States, and the Equity Shares may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933 or an exemption from registration. Any public offering of the Equity Shares to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, the Equity Shares are not being offered or sold in the United States.

Paras Defence and Space Technologies IPO Basis of Allotment FAQs

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