Paras Defence IPO subscribed 318 times with bids worth Rs 38,021 crore

Market experts say it is the most subscribed IPO, surpassing previous record of Salasar Tech, which was subscribed 273 times; HNI portion was 974 times with bids of Rs 25,000 cr

The IPO of Paras Defence and Space Technologies garnered 318 times subscription and generated bids worth Rs 38,021 crore.

Market experts said this has become the most subscribed IPO, surpassing the previous record of Salasar Technologies, which was subscribed 273 times.

The IPO saw 3.6 million retail applications. The retail portion of the issue was subscribed 118 times, while the institutional portion garnered 175 times subscription. The high networth individual (HNI) portion was subscribed 974 times with bids of nearly Rs 25,000 crore.

The frenzied application was amid a 80 per cent premium for Paras Defence’s shares in the unofficial grey market.

Paras Defence is engaged in manufacturing and testing of defence and space engineering products and solutions.

The price band for the IPO is Rs 165-175 per share. At the top-end, Paras Defence will have a market capitalisation of Rs 683 crore on a post-diluted basis. The company’s IPO comprises Rs 140.6 crore fresh fund raise and Rs 30.2 crore secondary share sale.

For the year ended March 2021, Paras Defence had clocked net profit of Rs 16 crore on revenues of Rs 143 crore.

“The order book as on June stood at Rs 305 crore, which is 2.13 times FY21 revenue and offers decent revenue visibility,” Reliance Securities had said in its IPO note.