On Day 2 Of The Paras Defence IPO, Subscribed 40.6 Times, With Retail Investors Booking 69 Times
The share was trading at Rs 365-375 on the grey market, a premium of Rs 190-200 or 108.6-114.3 per cent above the maximum price band of Rs 175 in the IPO.
The demand for Paras Defence and Space Technologies' initial public offering continues to be high, with the issue being subscribed 40.57 times on the second day of bidding on September 22. According to subscription statistics available on the exchanges, investors have placed bids for 28.96 crore equity shares against an IPO size of 71.40 lakh shares.
The Paras Defence IPO is the 42nd initial public offering (IPO) to be undertaken in 2021, with companies hurrying to list on stock exchanges to take advantage of the plentiful liquidity. The offer's price band has been set at Rs 165-175 per equity share, with the offer closing on September 23.
Retail investors' portion has been subscribed 68.57 times, while non-institutional investors' portion has been subscribed 26.32 times. Qualified institutional investors have placed bids totalling 1.67 times the amount reserved.
On September 21, the public offer was subscribed 16.57 times, with the retail component being subscribed 31.36 times, resulting in bids for over Rs 2,000 crore worth of shares.
The IPO, which includes a fresh issue of Rs 140.6 crore and an offer for sale of Rs 30.2 crore by selling shareholders, aims to earn Rs 170.77 crore for the private sector defence and space engineering products and systems company. The net proceeds from the offering will be used to purchase equipment, satisfy working capital needs, settle debts, and for other business purposes.
Paras Defence & Space Technologies is a defence and space engineering company that designs, develops, manufactures, and tests a wide range of products and solutions."The company is bringing the issue at price band of Rs 165-175 per share at price-to-earnings (P/E multiple of 34x on FY21 PAT basis. The company has a wide range of products and solutions for both defence and space applications. The company, being one of the few players in high precision optics manufacturing for space and defence application in India, has strong R&D capabilities with focus on innovation & is well positioned to benefit from the fovernment's "Atmanirbhar Bharat" and "Make in India" initiatives," said Hem Securities.
"In addition, the company's substantial order book provides good revenue visibility in the future. As a result, we recommend “Subscribe” on issue for both listing and long-term gains "Added the brokerage.
According to statistics from IPO Watch and IPO Central, the Paras Defence share was trading on the grey market at Rs 365-375 per share, a premium of Rs 190-200 or 108.6-114.3 per cent above the upper price band of Rs 175.
The grey market is an unofficial trading platform where shares are exchanged before they are allotted in an initial public offering (IPO) and listed on stock exchanges.