Paras Defense IPO (Initial Public Offering) Opening on 21st September 2021 and it will be open for bidding till 23rd September 2021. Company’s promoters have fixed Paras Defense IPO price band ₹from 165 ₹175 per equity share. However, before the opening date, Paras Defense shares are trading at a premium. ₹In the gray market 210. According to market observers; Small issue size, fair valuation and focus on defense sector can create a huge jump in IPOs.
Paras Defense IPO GMP (Grey Market Premium)
Today’s IPO of Paras Defense is GMP, say market observers ₹210 – ₹10 more than yesterday’s gray market premium ₹200. He said that Paras Defense’s IPO has increased from gray market premium ₹from 160 ₹210 in just three days, indicating ‘extremely bullish’ sentiment for a public issue. He further added that smaller issue sizes and attractive valuations may continue to attract gray market attention as the issue opening date is fast approaching.
what does this gmp mean
Market observers said the GMP reflects the listing premium expected by the gray market. However, he added that this is an unofficial data and it varies from day to day. As today IPO of Paras Defense is GMP ₹210, means that the gray market is expected to list the public issue around ₹385 ( ₹175 + ₹210) – 120 percent more than its issue price ₹from 165 ₹175.
Market observers say that if this bullish sentiment in the gray market continues, we can expect a strong response from the bidders on September 21, when the issue is opened for subscription. However, he advised the prospective bidders to look into the financial position of the company as GMP should not be the sole criterion for membership of a public issue.
Highlighting strong fundamentals that could further boost short-term sentiment with respect to Paras Defense IPO; Abha Doshi, Founder, UnlistedArena.com said, “The company has a strong order book almost. ₹305 crore as on June 30, 2021 with a well-diversified product portfolio in defense and space optics, defense electronics, heavy engineering and niche technologies. However, on the operational front, the top and bottom line growth appears to be muted. At the upper band of Rs 175, the P/E comes to around 43 times the post fresh issue. The government’s focus on ‘Make in India’ and high budgetary allocation for the defense sector can prove beneficial for such companies. Also, liberal policies and PLI scheme for drones will further benefit such companies.” He added that smaller issue sizes, fair valuations and focus on the defense sector can lead to a huge jump in IPOs.
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