Should you subscribe to Paras Defense IPO despite weak financials?

Paras Defense IPO is priced at Rs 165-175 per share and looks to raise Rs 171 crore at the upper end of the price band

The three-day initial public offer (IPO) by Paras Defense and Space Technologies kicked off on Tuesday and sailed through within minutes of opening. Despite a weak financial position and high valuations, investors lapped up the issue, banking on the future growth prospects of the company. The hefty grey market premium of Rs 195 per share or 114-118 per cent also added to the allure, especially for investors looking to make a quick buck. The IPO is priced at Rs 165-175 per share.

Tiny issue size and focus on the defence sector are the factors that may generate huge fancy in