IPO Of Paras Defence Oversubscribed Within One Hour Of Its Launch

The IPO, which consists of a fresh offering of 140.60 crores, is expected to raise a total of 170.78 crores for Paras Defence and Space Technologies.

IPO Of Paras Defence Oversubscribed Within One Hour Of Its Launch
IPO Of Paras Defence Oversubscribed Within One Hour Of Its Launch

The initial public offering (IPO) of Paras Defence and Space Technologies was oversubscribed within an hour of opening, indicating that the stock was in strong demand among investors. The IPO of Paras Defence has been subscribed 4.69 times at 11:06 a.m., according to data from the National Stock Exchange. Over 3.34 crore bids for Paras Defence shares were received, compared to 71.40 lakh shares on sale. At the cut-off price, a total of 2.73 crore bids were received.

The amount earmarked for retail individual investors was subscribed 6.13 times, indicating that the shares of Paras Defence and Space Technologies were in considerable demand. Non-institutional investors and qualified institutional buyers (QIBs), such as financial institutions and overseas institutional investors, were less interested in Paras Defence shares. According to NSE data as of 11:10 a.m., the amount earmarked for non-institutional investors was subscribed 0.07 times, while QIBs did not put any bids for Paras Defence shares.

The IPO, which consists of a fresh issue of 140.60 crores and an offer for sale of 30.18 crores, is expected to raise a total of 170.78 crores for 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. 

In the IPO, which will expire on September 23, Paras Defence has set a price range of 165 to 175 per share. A retail investor can bid on Paras Defence shares in lots of 85 shares or more, up to a maximum of 13 lots. One batch of Paras Defence shares will cost 14,875 at the top of the price band.

The company will utilise the IPO proceeds to purchase machinery and equipment, fund incremental working capital requirements and for general corporate purposes.

Should You Invest In Paras Defence IPO?

"Given its complex/wide product portfolio, presence in an unique defence field, strong customer relationships, and high entry hurdles, we prefer Paras Defence and Space Technology Limited. On a post-issue basis, the issue is valued at 1.9 times price to book value, which is appropriate. We believe that government support for defence and space spending would benefit Paras Defence. As a result, we propose that you subscribe. Furthermore, given the current bullish market and strong demand for defence equities, the issue may enjoy listing gains "Motilal Oswal, a brokerage firm, wrote in a note.