On the listing day, the scrip of Paras Defence and Space Tech settled with gains of 181 percent at Rs. 492.45 per share on the NSE. Likewise, on the BSE the stock closed higher by 185% at Rs. 498.75 apiece.
The IPO of Paras Defence and Space Tech made the strongest debut so far in 2021 on October 1, 2021. On the BSE, the shares got listed at a price of Rs. 475, a premium of more than 171 percent against the higher end of the IPO's issue price range of Rs. 175. Likewise, on the NSE, the stock listed at Rs. 469, a premium of 168 percent to its issue price.
The stellar listing of the defence major is partly attributed to the company's strong order book of Rs. 305 crore
Paras Defence and Space Tech included fresh equity issuance worth Rs. 141 crore together with an OFS of more than Rs. 30 crores. The price band set for the issue was Rs. 165-175.
Amid analysts' bullishness on the company's growth going ahead, the issue received an overwhelming response from the investors. The issue that was launched on September 21, 2021 was subscribed fully within minutes of launch on the first day itself and on overall basis has been subscribed more than 300 times.
Investors are optimistic on the scrip given the company's capability to benefit from the government initiatives including 'Make in India' and 'Atmanirbhar Bharat'.
The company will use the proceeds from the IPO for funding capital expenditure requirements, support increasing working capital needs as well as repaying loans.
Paras Defence designs, develops and manufactures a wide range of defence and space engineering products and services. Worth mentioning Paras Defence is the only Indian entity with designing capability for space optics as well as opto-mechanical assemblies.