Paras Defence and Space Tech shares made the best debut so far in 2021, clocking listing gains of 170 percent on the Bombay Stock Exchange (BSE). The shares were listed on BSE at a share price of Rs 475, over a 171 percent premium to the higher end of its issue price range. The shares were listed on the National Stock Exchange at Rs 469, a premium of 168 percent to its issue price.
The company had set the price band to Rs 165-175 for the issue. The issue comprised of fresh issuance of shares worth Rs 141 crore and an offer for sale of shares worth over Rs 30 crores.
The IPO had received a massive investor response during the three days of bidding that started on September 21. The issue was fully subscribed within minutes of opening on the first day. And was overall subscribed over 300 times.
Paras Defence had witnessed an overwhelming response from the investors as most analysts were bullish on the company's growth prospects.
The strong premium that the issue has commanded is party because of company's robust order book. Its ability to benefit from the 'Make in India' and 'Atmanirbhar Bharat' initiatives has massively impressed the investors.
Paras Defence is engaged in designing, developing, and manufacturing a wide range of defence and space engineering products and services.
The company plans to use the proceeds from the IPO to fund capital expenditure requirements, support incremental working capital needs, and repaying loans.