Paras Defence and Space Technologies’ IPO gets fully subscribed by retail investors on first day

• Paras Defence and Space Technologies gets subscribed 10.63 times in the first hour on the first day of bidding.
• The portion reserved for retail investors has been subscribed 20.58 times.
• Analysts believe the IPO is a good bet for the long term considering it gets 50% of its revenue from government entities.

The public issue of Mumbai-based Paras Defence and Space Technologies is already a hit among investors in just one hour of bidding on the first day. The majority of the demand was from retail investors as the portion reserved for retail investors was subscribed 20.58 times.

The issue size was subscribed 10.63 times on the first day of the issue on September 21 as of 2 p.m. The initial public offering (IPO) got good response from investors in terms of subscription compared to other recent IPOs.

The defence company’s IPO received bids for 7.26 crore equity shares against the IPO size of 68.31 lakh equity shares.

Category	Subscription Status
Qualified Institutional Buyers	00 times
Non-institutional	1.59 times
Retail individual	20.58 times
Total	10.63 times

Typically, non-institutional investors get into the race on the last day as they don’t prefer to park higher funds without earning an interest on them.

The IPO consists of ₹140.6 crore fresh issue and offer for sale worth ₹30.17 crore by the promoters with a price band of ₹165-175 a share.

The company is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions.

Analysts are bullish on the IPO as it highlights the company’s ability to benefit from the government’s ‘Make in India’ initiative along with its strong order book. The company derives majority of its business from government entities in the defence and space sector. As of FY21, government and private entities generated 50.8% and 32.3% revenue, while the rest was from exports. It has a strong order book of ₹304 crore as of June 30, 2021.

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