Blockbuster listing: Paras Defence & Space Technologies jumps nearly three times on listing

Paras Defence & Space Technologies made a blockbuster debut on October 01, opening at Rs 469 on the National Stock Exchange, compared to the issue price of Rs 175, marking a premium of 168%. On the BSE, Paras Defence opened at Rs 475, at a premium of 171%. With such strong listing gains, the company has done a record debut for FY22. Paras Defence got listed in T2T-segment which means any purchase or sale has to result in compulsory delivery.

The Rs 171 crore issue of Paras Defence and Space Technologies IPO created history as it was the most subscribed IPO. IPO saw an overwhelming response from all the categories of investors. It received bids of 2,17,26,31,875 shares against the offered 71,40,793 equity shares, as per the 5:00 pm data available on the bourses. The issue was subscribed 304.26 times making it the most subscribed IPO in history. The portion reserved for the non-institutional investor category was subscribed 927.70 times and the retail investors were subscribed 112.81 times, while the qualified institutional buyer category was subscribed 169.65 times.

The initial public offer (IPO) includes a fresh issue of up to Rs 140.6 crore and an offer for sale of up to 17,24,490 equity shares. The price range for the offer was at Rs 165-175 apiece. The offer was fully subscribed within hours of opening on the first day on Tuesday.

Proceeds of the fresh issue would be used to fund capital expenditure requirements, to support incremental working capital needs, and repayment or prepayment of loans availed by the company. The company is engaged in designing, developing, manufacturing, and testing a wide range of defence and space engineering products and solutions.

Paras Defence and Space Technologies’ business is highly dependent on projects and programmes that are undertaken by the central government and associated entities, such as defence public sector undertakings and government organisations involved in space research. Anand Rathi Advisors was the manager to the offer.