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Paras Defence IPO Subscribed 304.26 Times on Final Day

05 August 20226 mins read by Angel One
Paras Defence IPO Subscribed 304.26 Times on Final Day
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By the third and last day of Paras Defence IPO, i.e., 23 September 2021, the company’s shares were subscribed 304.26 times.

Paras Defence is among the leading players in the field of defence and space engineering products and solutions. Its diverse offerings and advanced R&D capabilities make this company stand out among its peers.

To make the most of its market presence, the company filed its first draft paper with the market regulator SEBI in March 2021. It aimed to raise Rs. 170.78 crores through the new issue and an OFS at a price band of Rs. 165 to Rs. 175.

That said, here’s how the company fared by the end of Day-3 of its IPO.

Paras Defence IPO Performance by the End of Day 3: In a Nutshell

Here’s a summary of how Paras Defence IPO performed across all investor categories during its public subscription days:

  • Qualified institutional buyers (QIB) received a total of 34,23,38,435 bids against the allotted portion of 20,17,941 equity shares.
  • Non-institutional investors (NII) sought a total of 1,42,57,44,440 shares out of 15,36,856 shares that were reserved for this category.
  • Retail individual investors (RII) bid for 40,45,49,000 shares against a total of 35,85,996 shares reserved for them.

The below table offers a fair idea of how Paras Defence IPO performed by the end of 3 days.

Investor Category Number of Times Subscribed 
Qualified Institutional Buyers 169.65 times
Non-Institutional Investors 927.70 times
Retail Individual Investors 112.81 times
Total 304.26 Times

Anchor Investment – At a Glance

On 20 September, Monday, right before its public offering, the company managed to raise Rs. 51 crores from marquee investors. Paras Defence allocated a total of 29,27,485 equity shares to anchor investors at Rs. 175 apiece.

Participating Anchor investors

The five marquee investors who participated in this public offer were:

  1. HDFC Focused 30 Fund – Over 4.84 lakh shares
  2. Saint Capital Fund – 2.85 lakh shares
  3. Nippon Small Cap Fund – 4.87 lakh shares
  4. Abakkus Emerging Opportunities Fund – 6.65 lakh shares
  5. Ashoka India Equity Investment Trust – 10 lakh shares

After allotting shares to anchor investors, the public offer comprised a fresh issue amounting to Rs. 140.6 crores and an OFS of a maximum of 17,24,490 shares by selling shareholders. Collectively, the company is expected to collect Rs. 170.77 crores via this public offering.

How does Paras Defence IPO Intend to Benefit from this IPO?

Primarily, Paras Defence intends to raise funds through its public offering. Here’s how it aims to benefit through the process:

  • Carry out an offer for the sale of its shares held with promoters and shareholders.
  • Use the fund to account for CAPEX.
  • Account for incremental working capital.
  • Repayment of existing debt.
  • Address general corporate purposes.

Paras Defence IPO Day 1 and Day 2 Highlights: In Brief

Here’s how Paras Defence public offering performed on day 1 and day 2:

Day of Bidding QIB portion RII portion NII portion Total 
Day 1  0.01 times 31.33 times 3.77 times 16.55 times
Day 2 1.67 times 26.32 times 68.57 times 40.57 times

Bottom Line 

By day 3 of the IPO, the company received a total of 2,17,26,31,875 share applications against the 71,40,793 reserved for all investor categories. At the upper band, Paras Defence managed to raise its targeted amount, making its public offering a success.

Regardless, investors who missed out on the opportunity to subscribe to its initial public offer can park their money in Paras Defence shares once it gets listed on stock exchanges.

To streamline the process, download the Angel One app now!


Frequently Asked Questions

  1. Who is Paras Defence IPO’s registrar?

Link Intime India Private Ltd. is Paras Defence IPO’s registrar.

  1. When will Paras Defence IPO’s equity shares get listed on the bourses?

The tentative listing date is 1 October 2021.

  1. When will Paras Defence shares get credited to investors’ DEMAT account?

Paras Defence shares will get credited to investors’ DEMAT account on 30 September 2021.


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