Paras Defence and Space Technologies shares were in very high demand in the ongoing share sale via initial public offering (IPO).

Paras Defence and Space Technologies' IPO was subscribed 40 times till 4:48 pm on the second day of the issue.

Paras Defence received 28.84 crore bids compared with 71.41 lakh shares on the offer.

A total of 18.35 crore bids were received at the cut-off price.

Retail investors seen bidding for Paras Defence shares in high numbers as the portion reserved for them was subscribed 36 times, data from the National Stock Exchange showed.Portion reserved for non-institutional investors was subscribed 10.5 times and portion set aside for Qualified Institutional Buyers (QIBs) was subscribed 16 per cent.Paras Defence has priced its shares in the band of Rs 165 to 175 per share in the IPO which will end on September 23.

A retail investor can place bids for Paras Defence shares in a lot size of 85 shares up to maximum of 13 lots.

At the upper price band one lot of Paras Defence shares will cost Rs 14,875.The company will utilise the IPO proceeds to purchase machinery and equipment, fund incremental working capital requirements and for general corporate purposes.The Mumbai-based Paras Defence and Space Technologies, which is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products, is planning to raise Rs 170.78 crore in the IPO which consists of fresh issue of Rs 140.60 crore and an offer for sale of Rs 30.18 crore.Anand Rathi Securities is the book running lead manager for the IPO while Link Intime India Private Limited is the registrar to the issue.