Paras Defence and Space Technologies gets subscribed 23.90 times as on the second day of bidding.- The portion reserved for retail investors has been subscribed 44.65 times.
- Analysts believe the IPO is a good bet for the long term considering it gets 50% of its revenue from government entities.
Mumbai-based Paras Defence and Space Technologies has grabbed investor’s attention on huge demand for the IPO. On the first day, the IPO was fully subscribed in just one hour of bidding.
The initial public offering (IPO) got a good response from investors in terms of subscription compared to other recent IPOs.
The majority of the demand was from retail investors as the portion reserved for retail investors was subscribed 44.65 times.
The company is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions.
Shares of the Mumbai-based defence company were reportedly trading at a premium of ₹220 per share, up by over 125% from the price band of ₹165-170.
Analysts have 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.
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