Paras Defence IPO: ₹170.78 crore public issue is going to open next week on 21st September 2021. It will remain open for bidding till 23rd September 2021. The company management has fixed price band at ₹165 to ₹175 per equity share. However, the grey market has already gone bullish over the defence share listing at Indian bourses. Paras Defence shares are available at a premium of ₹200 in the grey market.
Here we list out important details in regard to Paras Defence IPO:
- Paras Defence IPO GMP: As mentioned above, Paras Defence IPO GMP today is ₹200, which is more than double of Paras Defence IPO price of ₹165 to ₹175 per equity share. According to market observers, this grey market premium indicates that grey market is expecting Paras Defence IPO listing at around ₹375 ( ₹175 + ₹200) — around 115 per cent higher from the issue price.
- Paras Defence IPO price: The defence company management has fixed price band of the public issue at ₹165 to ₹175 per equity share.
- Paras Defence IPO size: Company aims to raise ₹170.78 crore from this public issue out of which ₹140.60 crore is planned from fresh issue while ₹30.18 crore through OFS (Offer for Sale).
- Expert opinion: Speaking on the financials that may attract bidders; Abhay Doshi, Founder at UnlistedArena.com said, "The company has a strong order book of around Rs. 305 crores as on June 30, 2021 with a well diversified product portfolio in defense and space optics, defense electronics, heavy engineering and niche technologies. However, on the operational front, top and bottom line growth seems to be muted. At the upper band of Rs.175, post fresh issue the asking P/E comes around 43x. The government’s focus on 'Make in India' and higher budgetary allocation for defense sector may prove beneficial to such companies. Also, liberal policies and PLI scheme for drones will further benefit such companies." Doshi went on to add that small issue size, reasonable valuations and focus on defense sector may generate huge fancy in IPO.
- Paras Defence IPO lot size: A bidder will be able to apply in lots and one lot will comprise 85 company shares.
- Investment limit: A bidder is allowed to apply for a minimum of one lot and maximum 13 lots. that means, minimum investment allowed in this IPO is ₹14,875 ( ₹175 x 85) while maximum investment allowed is ₹1,93,375 ( ₹175 x 85 x 13).
- Paras Defence IPO allotment date: The tentative date for share allotment is 28th September 2021.
- Paras Defence IPO listing date: The tentative date for share listing is 1st October 2021. Shares of the defense company will get listed at both NSE and BSE.
