24 Sep , 2021 By : Kanchan Joshi
Paras Defence and Space Technologies initial public offer (IPO) received a whopping 304.26 times subscription on the closing day on Thursday. The offer was fully subscribed within minute of opening for on the first day on Tuesday, September 21.
As per market observers, after the strong response from investors, Paras Defence shares are available at a strong premium (GMP) of Rs250 today in the grey market as all eyes are now on the share allotment date and status.
The tentative date for allotment of Paras Defence shares is September 28 and the bidders can check their status online on the registrar's website Link Inktime here or on the stock exchange BSE's website here.
The IPO received bids for 2,17,26,31,875 shares against 71,40,793 shares on offer. The non-institutional investors category received a massive 927.70 times subscription, Qualified Institutional Buyers (QIBs) 169.65 times and Retail Individual Investors (RIIs) 112.81 times.
The Rs171 crore share sale comprised a fresh issuance of shares aggregating up to Rs140.6 crore and an offer for sale of up to 17,24,490 shares by existing shareholders. Paras Defence had priced its shares in a range of Rs165-175 apiece. The company had garnered a little over Rs51 crore from anchor investors ahead of its IPO.
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.
Shares of Paras Defence are expected to list on October 1 on both leading stock exchanges NSE and BSE.
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