Paras Defence and Space Technologies’ initial public offering (IPO) has been subscribed 16.7 times so far on Tuesday, the first day of the bidding process backed by strong demand from retail investors. The issue has received bids for 11.8 crore shares against the IPO size of 71.40 lakh shares, according to the data available on the exchanges.

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The portion set aside for retail investors has been subscribed 31.36 times and that for non-institutional investors 3.77 times. Qualified institutional buyers have subscribed 1 percent.

The Rs 170.77-crore issue, which will close on September 23, comprises a fresh issue of shares worth Rs 140.6 crore by the company and an offer for sale of shares worth Rs 30.17 crore by existing shareholders.

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Paras Defence and Space Tech IPO to open today: Key things to know

The company has set a price band of Rs 165-175 for the public offer.

The company raised up Rs 51.23 crore from five anchor investors on September 20.

Paras Defence and Space Technologies offers a range of products and solutions for defence and space applications.

Also Read: Paras Defence and Space Tech IPO opens; should you subscribe?

Considering the product profile, Paras Defence doesn’t have any peers in the listed space. At the upper end of the price band, the company is demanding a price-to-earnings multiple of 43.4 times its FY21 EPS of Rs 4).

Choice Broking recommends subscribing to the issue citing the company’s niche product profile and technology, dominant market position, and vast growth potential.

The company proposes to utilise the net proceeds of the fresh issue for purchase of machinery and equipment, incremental working capital requirements, and repaying debt, besides general corporate purposes.

First Published:Sept 21, 2021 11:20 AM IST