INSUBCONTINENT EXCLUSIVE:
Paras Defence IPO was subscribed 4.69 times by 11:06 am.Paras Defence and Space Technologies shares were in very high demand among the
investors as its share sale via initial public offering (IPO) was oversubscribed within an hour of opening
Paras Defence's IPO was subscribed 4.69 times by 11:06 am, data from the National Stock Exchange showed
Over 3.34 crore bids were received for Paras Defence shares compared with 71.40 lakh shares on the offer
A total of 2.73 crore bids were received at the cut-off price.Paras Defence and Space Technologies shares in very high demand particularly
among the retail individual investors as the portion reserved for them was subscribed 6.13 times
While, non-institutional investors and qualified institutional buyers (QIBs), which include financial institutions and foreign institutional
investors showed subdued interest for Paras Defence shares
Portion reserved for non-institutional investors was subscribed 0.07 times while QIBs did not place any bids for Paras Defence shares, NSE
data showed as of 11:10 am.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.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."We like Paras Defence and Space Technology
Limited given its complex/wide product portfolio, presence in niche defence space, strong client relationship and high entry barriers
The issue is valued at 1.9 times price to book value on a post issue basis, which is reasonable
We believe Paras Defence could benefit from government impetus on the defence and space expenditure
Hence we recommend subscribe
Further given the current buoyant market and high interest for defence stocks, the issue could see listing gains as well," brokerage firm
Motilal Oswal said in a note.
