Paras Defence Lists its Shares at a Premium of 171%

Last Friday, on 1 October 2021, the scrips of Paras Defence got listed on the bourses, making a spectacular debut.

To elaborate, Paras Defence shares got listed on the Bombay Stock Exchanges at Rs. 475 against Rs. 175 (its issue price with a face value of Rs. 10). Accordingly, it registered a listing premium of nearly 171%. Similarly, the scrip was listed on the National Stock Exchange at Rs. 469 at a premium which was up by 168%.

Here’s more on this development.

Paras Defence’s IPO Performance: In Retrospect

The public subscription of Paras Defence IPO was carried out from 21 September 2021 to 23 September 2021. Its initial public offering was of Rs. 170.78 crores, and the same received exceptional response from the investor segment. To elaborate, this IPO was subscribed a total of 304 times.

Here’s a quick reminder of how Paras Defence IPO performed across different investor segments:

• QIB: 170 times
• NII: 927.70 times
• RII: 113 times

The IPO was carried out to raise funds to meet CAPEX and incremental working capital needs and requirements. That said, the IPO net proceeds are also expected to repay the company’s existing debt.

Price Summary of Paras Defence Shares

At 12.10 p.m on 5 October, the price summary of Paras Defence shares is highlighted below:

Today’s high: Rs. 542.90

Today’s low: Rs. 542.90

About Paras Defence and Space Technologies Ltd

This company is involved in designing, manufacturing, and testing products and solutions related to defence and space engineering. The operations cater to major segments, including defence electronics, electro-magnetic pulse (EMP), defence and space optics, and heavy engineering.

It is the only supplier of large-sized optics and other critical imaging components, giving it an upper hand in this space. Moreover, the fact that it has no immediate market competitor puts it in a lucrative position. Also, its products and offerings are perfectly aligned with the Government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.

Final Word

Investors can weigh in the financial metrics, company’s prospects and limitations to determine whether investing in Paras Defence shares will be profitable or not. That said, investors must identify their risks to align their financial goals accordingly.

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Frequently Asked Questions

1. What is the market capitalisation of Paras Defence?

At the time of writing, the market capitalisation of Paras Defence stands at Rs. 2,117.31 crores.

2. What is the total number of Paras Defence shares?

There are a total of 3.90 crores Paras Defence shares.

3. What is the sector P/E of Paras Defence?

The sector P/E of Paras Defence is 106.04.

4. What is Paras Defence’s EPS?

At the time of writing, its EPS is 5.12.

5. What is Paras Defence’s existing debt?

Currently, the existing debt of Paras Defence stands at Rs. 102.86 crores.