The Paras Defence IPO-Should you invest?

Paras Defence IPO (initial public offering) that opened for subscription on Tuesday has been oversubscribed 300 times on the final day.

0
18
Paras Defence IPO
Image Source: Internet

Paras Defence IPO share allotment: Within the subscription period from September 21-23, 2021, 304.26 times more shares were subscribed than the 71.40 lakh put up for sale. Rs 165-175 per share were the fixed price band.

IPO data available with the National Stock Exchange (NSE) shows that Paras Defence issued a total of 71.40 lakh (71,40,793) shares against bids of over 217.26 crores.

Data shows that shares allocated to qualified institutional buyers (QIBs) were subscribed 169.65 times, while shares allocated to non-institutional investors were subscribed 927.70 times, while shares allocated to retail individual investors (RIIs) were subscribed 112.81.

In the IPO of Paras Defence and Space Technologies, worth Rs 171 crore, fresh shares worth Rs 140.6 crore will be issued by promoters and current shareholders, and equity shares priced at Rs 17,24,490 each will be sold.

Allotment dates

Now that the Paras Defence IPO is finalized, investors are eagerly awaiting the share allotment date. As per the timeline promised in the red herring prospectus (RHP), the company is expected to finalize the allotment by September 28, 2021. Here’s how you can follow up on your Paras Defence IPO allocation after it is announced:

  • The status of the allotment will be updated on Link Intime India’s website (Click here: https://linkintime.co.in/MIPO/Ipoallotment.html for more information). For those interested in viewing their allocation status, they must choose Paras Defence and Space Technologies Limited – IPO from the drop-down menu and enter their PAN, application number, or DP Client ID and then click on search.
  • The BSE website has also a facility for checking the status of allotment, in addition to the registrar’s website (Click on this link: https://www.bseindia.com/investors/appli_check.aspx). The applicants will need to select Equity in the Issue Type section, then choose PARAS DEFENCE AND SPACE TECHNOLOGIES LIMITED from the drop-down list in the Issue Name section, and enter their application number and PAN number in the respective fields. To view their status, they must check the ‘I’m not a robot box and then click on search.

Check the status of your allotment

On the BSE website or the IPO registrar’s website, investors can check the share allotment status.

Investors can follow these steps on the BSE website:

Select “Equity” as the issue type and “Paras Defence and Space Technologies Limited” as the issue name.

b) Enter the PAN and application number.

Click on Search once you have checked the “I’m not a robot” box.

Alternatively, you can check the allocation on the website of the IPO registrar:

Choose either DP Client ID, PAN, or Application Number.

b) Choose “Paras Defence and Space Technologies Limited – IPO.”

c) Provide either a PAN, a Client ID or an Application Number.

d) To view the allocation status, click the Search button.

Investors who were not allotted shares will receive their refunds in their bank accounts by September 29, while those who were allocated shares will receive them in their Demat accounts by September 30.

According to the prospectus, trading will begin on October 1.

Grey market

Data from IPO Watch and IPO Central shows Paras Defence shares were available in the grey market for Rs 420-445, or a premium of Rs 245-270, or 140-154 percent, over the expected final issue price of Rs 175 per share.

There is an unofficial marketplace, or grey market, where shares begin trading at the time of an IPO price band announcement and continue trading until the shares listed.

At Paras Defence, we design, develop, manufacture, and test space and defense engineering solutions that cater to five major segments – space optics, defense electronics, electromagnetic pulse (EMP) protection solutions, heavy engineering, and niche technologies.

The public offer for Rs 170.77 crore subscribed 304.26 times between September 21-23, the highest subscription since 2007 for an IPO. It received bids worth Rs 38,021 crores.

A majority of investors bought 169.65 times the amount reserved for them, while non-institutional investors bought 927.70 times the amount reserved for them. Consumers bought 112.81 times their share of the transaction.

FAQs

1. Can you tell me what Paras Defence IPO is?

The Paras Defence and Space Technologies IPO consists of equity shares with a face value of ₹10 (up to ₹170.78 crores) that are being offered on the main board of the Indian Stock Exchange. Pricing ranges from ₹165 to ₹175 per equity share. Orders must be at least 85 shares in quantity.

On Sep 21, 2021, the IPO opens and closes on Sep 23, 2021.

Registrar for the IPO is Link Intime India Private Ltd. IPO shares proposed for BSE and NSE listing.

2. How large is the IPO lot for Paras Defence?

The minimum order quantity for Paras Defence and Space Technologies’ IPO is 85 shares.

3. How do I apply for the Paras Defence IPO?

Online applications for Paras Defence and Space Technologies IPO can submit with either UPI or ASBA as a payment method. IPO applications are available through your bank’s net banking service. Brokers who do not offer banking services offer UPI IPO applications.

4. How soon will the IPO for Paras Defence allotted?

Paras Defence and Space Technologies will finalize the basis of allotment on September 28, 2021. You will receive your allotted shares on September 30, 2021.

5. When will Paras Defence list on the IPO market?

It has not yet announced when Paras Defence and Space Technologies will list on the NYSE. We expect the IPO to list on Oct. 1, 2021.

Also Read: How to Invest in IPO-IPO Investment Tips

LEAVE A REPLY

Please enter your comment!
Please enter your name here