Paras Defense IPO GMP: The Initial Public Offering (IPO) of Paras Defense and Space Technologies opened for subscription yesterday and will be open for bidding till 23 September 2021. The public issue was subscribed 16.57 times after the first day of bidding – reflecting positive investor sentiment towards the initial public offering. . Meanwhile, there has also been a boom in the gray market regarding the public offer of the defense company. According to market experts, the IPO of Paras Defense today is Gray Market Premium (GMP). ₹235 – ₹25 up from your Tuesday’s GMP ₹210.
Market observers said smaller issue sizes, fair valuations and the Indian government’s focus on the defense sector may continue to generate huge enthusiasm for the IPO and the rising premium of Paras Defense shares in the gray market reflects the same. He said the rising gray market premium of Paras Defense IPO indicates that it may have a strong listing in the Indian markets.
Today’s IPO of Paras Defense is GMP, say market observers ₹235 – ₹25 More Than Your Tomorrow’s GMP ₹210. He Said Paras Defense IPO GMP Ne Shot From ₹from 150 ₹235 in just one week. In fact, Paras Defense IPO has gone up by gray market value ₹180 to ₹235 in just 3 days. Observers said such a strong premium in the gray market reflects the strong listing of the public issue and it could be reflected in the Paras Defense IPO subscription position in the next two days of bidding.
What is the meaning of this Paras Defense IPO GMP
Market observers said the gray market premium is an unofficial listing advantage expected by the gray market. As today IPO of Paras Defense is GMP ₹235 against its issue price ₹from 165 ₹175 per equity share, means gray market is expecting Paras Defense IPO listing ₹410 ( ₹175 + ₹235) – about 135 percent above its upper price band.
Speaking on Paras Defense IPO; Saurabh Joshi, Research Analyst, Marwari Shares and Finance Ltd. said, “Looking at the adjusted EPS for FY21 ₹On a post issue basis 4.05, the company is going to be listed at a P/E of 43.23, which has a market cap of Rs. ₹6,825 million There is no listed entity in India whose business portfolio is comparable with that of the company. We assign a subscribe rating to this IPO as the company offers a wide range of products and solutions for both defense and space applications and is well positioned to benefit from the government’s “Atmanirbhar Bharat” and “Make in India” initiatives. is deployed.
Abhay Doshi, Founder, UnlistedArena.com, said, “Small issue size, fair valuation and the Indian government’s focus on the defense sector can create a huge jump in IPOs.” He further said that such companies are expected to benefit from higher budgetary allocation for the defense sector, liberal policies and PLI scheme for drones.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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