Paras Defense and Space IPO: IPO of Paras Defense subscribed 16.57 on the very first day, retail investors invested money heavily
The IPO of Paras Defense and Space Technologies has received tremendous response from investors. It was fully subscribed within minutes of the subscription opening on Tuesday (21 September 2021). At the end of the day, the Rs 171 crore IPO was oversubscribed 16.57 times. The company had issued 71.40 lakh equity shares but in return it received applications for 11.82 crore equity shares.
The company raised Rs 51.23 crore from five anchor investors
The company had reduced its offer size from 97.58 lakh equity shares to 71.40 lakh equity shares. In fact, on September 20 itself, the company had raised capital of Rs 51.23 crore from five anchor investors. On the first day, retail investors bid for 31.36 times the shares against their reserves. Whereas non-institutional investors bid for 3.77 times the shares as compared to their share. Qualified institutional investors have subscribed 1% of the IPO.
IPO subscription will close on 23rd September
The lot size of 85 shares was fixed for the IPO. That is, investors had to invest at least Rs 14875 according to the upper price of the price band. 50% of the issue is reserved for Qualified Institutional Institutional Buyers (QIBs) and 15% for Non-Institutional Investors (NIIs). The remaining 35 per cent of the IPO has been reserved for retail investors.
Paras Defense will raise Rs 170.77 crore from IPO. There is a fresh issue of Rs 140.5 crore, while shares worth Rs 30.2 crore have been issued under the offer for sale. The price band has been kept from Rs 165 to Rs 175. The subscription to the IPO will close on September 23. According to analysts, Paras Defense and Space’s order book is very strong and as of June 30, 2021, it stood at Rs 305 crore.