Paras Defence and Space Technologies IPO allotment is tomorrow, IPO was subscribed 304 times

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Paras Defence and Space Technologies IPO allotment is tomorrow, IPO was subscribed 304 times
BCCL
  • The company is likely to announce its share allotment status on September 28.
  • The Mumbai-based defence company’s IPO was subscribed 304 times on the last day of bidding.
  • Investors have bid for 217 crore shares against the 71.40 crore shares on offer.
Mumbai-based defence company Paras Defence and Space Technologies is likely to announce the allotment of its initial public offering (IPO) status on Tuesday, September 28.

The IPO was open for subscription between September 21 and September 23.

The company is looking to raise ₹170 crore out of which ₹140 crore is through fresh issue ₹30 crore is through offer for sale (OFS) by the promoters. The IPO has received very strong response from investors especially from qualified institutional buyers and non-institutional investors.

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Overall, investors have bid for 217 crore shares against the 71.40 crore shares on offer.

The portion for qualified institutional investors was subscribed 169.65 times while the non-institutional investor category received a bid for 927.70 times.

The public issue of the company was a hit among investors as it was fully subscribed in just one hour of bidding on the first day.

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Reportedly, Paras Defence and Space Technologies’ IPO is one of the most highly subscribed IPOs in history. Other IPOs that made into the list of most subscribed include Astron Paper & Board Mill with 241.8 times, Mrs. Bectors (198 times), Capacite Infraprojects (183 times), Ujjivan Small Finance Bank (165.7 times), and Amber Enterprises (165.4 times).

The company is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions.

One of the reasons for the IPO to become a huge hit was its robust grey market premium. Shares of Paras Defence & Space Technologies were reportedly trading at a premium of ₹260 per share, up by over 150% from the price band of ₹165-170.

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More importantly, most analysts had recommended subscribing to the IPO for the long term on strong growth prospects.

“Company has [a] wide range of products and solutions for both defence and space applications. Company being one of the few players in high precision optics manufacturing for space and defence application in India has strong R&D [research and development] capabilities with focus on innovation and is well positioned to benefit from the government’s “Atmanirbhar Bharat” and “Make in India” initiatives. Also, the company's strong order book gives good revenue visibility going forward,” said analysts at HEM Securities while recommending to subscribe to the IPO for long term.

Analysts at Choice Broking say the company doesn’t have any peers in the listed space which they believe is an add-on. “Considering its niche product profile and technology, dominant market positioning and vast growth potential, we assign a “SUBSCRIBE” rating for the issue.”

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