01 Oct , 2021 By : Kanchan Joshi
Shares of Paras Defence and Space Technologies made a stellar debut on the Indian bourses on Friday. The stock listed at Rs469 per share on the NSE, around 170% premium from its IPO issue price of Rs175 apiece. On BSE, Paras Defence shares extended gains by rising to near Rs500 level, nearly triple from issue price.
Mirroring massive investor interest, the three-day initial public offer (IPO) of Paras Defence received a whopping 304.26 times subscription. The issue was fully subscribed within minutes of opening on the first day of bidding that opened on September 21.
Paras Defence IPO included a fresh issue of up to rs140.6 crore and an offer for sale of up to 17,24,490 equity shares. The initial share sale's price range was fixed at Rs165-175 apiece. The company had garnered a little over rs51 crore from anchor investors ahead of its IPO.
Paras Defence is engaged in designing, developing, manufacturing, and testing a wide range of defence and space engineering products and solutions. Proceeds of the fresh issue is said to 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's 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.
0 Comment