Paras Defense and Space Technologies Initial Public Offering (IPO) 304.26 times subscription was received on closing day on Thursday. The offer was fully subscribed within minutes of opening on the first day on Tuesday 21st September.
According to market observers, Paras Defense shares are available at a strong premium (GMP) after strong investor response. ₹250 is in gray market today as all eyes are now on the date and position of share allotment.
The tentative date for allotment of Paras Defense shares is 28th September and the bidders can check their status online on the website of the registrar link inctime. Here or on the website of stock exchange BSE Here.
The IPO received bids for 2,17,26,31,875 shares, while 71,40,793 shares were offered. The non-institutional investor category was subscribed 927.70 times, qualified institutional buyers (QIBs) 169.65 times and retail individual investors (RIIs) 112.81 times.
NS ₹171 crore share sale involved a fresh issue of shares up to ₹140.6 crore and offer for sale of 17,24,490 shares by existing shareholders. Paras Defense had priced its shares between Rs 165-175. The company had achieved a little more ₹51 crore from anchor investors before its IPO.
The proceeds from the fresh issue will be used to meet the capital expenditure requirements, to meet the growing working capital requirements and for repayment or prepayment of loans taken by the company. The company is engaged in the design, development, manufacturing and testing of a wide range of Defense and Space Engineering products and solutions.
The business of Paras Defense and Space Technologies is heavily dependent on projects and programs that are undertaken by the central government and allied entities, such as defense public sector undertakings and government organizations involved in space research.
The shares of Paras Defense are expected to be listed on both the major stock exchanges NSE and BSE on October 1.
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