Paras Defence and Space Technologies initial public offer (IPO) share allotment has been announced today. The initial share sale received a whopping 304.26 times subscription on the closing day of its bidding last week, after being fully subscribed within minutes of opening on the first day on Tuesday, September 21.
The allotment status can be checked online on the BSE website here or at the website of Paras Defence IPO’s official registrar, Link Intime India Private Ltd here.
As per market observers, Paras Defence shares are available at a premium (GMP) of ₹225 in the grey market today. Shares of Paras Defence are expected to list on October 1 on both leading stock exchanges NSE and BSE.
The initiation of refund is likely to take place within a day after the finalisation of the share allotment, and credit of shares in the Demat Account of the allotted bidders is expected on 30th September 2021.
The Qualified Institutional Buyers (QIBs) category was subscribed 169.65 times, non-institutional investors a massive 927.70 times, and Retail Individual Investors (RIIs) 112.39 times.
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).
The ₹171 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. Paras Defence had priced its shares in a range of Rs165-175 apiece. The company had garnered a little over ₹51 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.
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