Paras Defense’s IPO is opening this week. GMP suggests that the issue may see strong demand

Paras IPO Allotment & Listing Dates

Share allocation as per brokerage Paras Defense IPO Finalization may happen on September 28 while listing may happen on October 1. Investors can bid for a minimum of 85 equity shares and thereafter in multiples of 85 equity shares. Half of the issue size is reserved for Qualified Institutional Buyers (QIBs), 35 percent for retail investors and the remaining 15 percent for non-institutional investors. Link Intime India Private Limited Paras Defense Public is the registrar of the issue and will manage the share allotment and refund.

Paras Defense Share GMP

Given the current gray market premium, analysts see strong demand for the issue. According to market observers, Paras Defense & Space Technologies is currently commanding a steep GMP or gray market premium ₹from 210 ₹215 per share.

The company has approximately Rs. Has a strong order book. 305 crore with a diversified product portfolio in defense and space optics, defense electronics, heavy engineering and niche technologies as on June 30, 2021, says Abhay Doshi, co-founder, UnlistedArena.com.

“However, on the operational front, the top and bottom line growth appears to be muted. At the upper band of Rs 175, the ask PE comes around 43X after the fresh issue. The government is focusing on ‘Make in India’ and higher 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.

“Small issue size, reasonable valuation and focus on defense sector can create a huge jump in IPOs,” he said.

Paras Defence, which provides a wide range of products and solutions for defense and space applications, operates in five verticals: defense and space optics, defense electronics, heavy engineering, electromagnetic pulse protection solutions and specialized technologies.

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. Anand Rathi Advisors is the Book Running Lead Manager for the issue.

Meanwhile, share allocation in Sansera Engineering IPO, which was subscribed 11.47 times, will be finalized this week. NS ₹As per the data available with BSE, the IPO worth Rs 1,283 crore received bids for 13,88,39,000 shares as against 1,21,09,166 shares. (with agency input)