Paras Defence and Space Technologies IPO sees highest ever subscription of 304 times



The initial public offering (IPO) of Paras Defence and Space Technologies Ltd garnered massive interest from investors on the last of the offer on Thursday, recording a total subscription of 304.26 times, the highest ever seen for any main board IPO in the country.

The subscription figure for Paras Defence beat the previous high subscription numbers of Salasar Techno Engineering Ltd (273.05 times), Apollo Micro Systems Ltd (248.5 times) and Astron Paper & Board Mill Ltd (241.8 times).

According to stock exchange data, the portion of the Paras Defence share sale reserved for institutional investors was subscribed 169.65 times, while the portions reserved for high networth individuals and retail investors were subscribed 927.7 times and 112.81 times, respectively.

The Rs171 crore share sale comprised a fresh issuance of shares aggregating up to   140.6 crore and an offer for sale of up to 17,24,490 shares by existing shareholders. The company had priced its shares in a range of Rs165-175 apiece.

Earlier this week, the company raised Rs51 crore through its anchor book allocation from five investors – Ashoka India Equity Investment Trust, Abakkus Emerging Opportunities Fund, Saint Capital Fund, Nippon Small Cap Fund and HDFC Focused 30 Fund.

Paras Defence caters to four major segments of the Indian defence sector: defence optics, defence electronics, electro-magnetic pulse (EMP) protection solution, and heavy engineering for defence and niche technologies. The company is the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India. The company manufactures high precision optics for the defence and space applications such as thermal imaging and space imaging systems.

The company operates through two manufacturing facilities in Maharashtra, located at Nerul (Navi Mumbai) and Ambernath (Thane).

Its customer base ranges from government organizations involved in defence and space research to various defence public sector undertakings like Bharat Electronics Ltd, Electronic Corporation of India Ltd and Hindustan Aeronautics Ltd; and private entities including Tata Consultancy Services Ltd, Solar Industries India Ltd and Alpha Design Technologies Ltd.

Anand Rathi Advisors Ltd is the book running lead manager to the offer.

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