Ahead of its market debut on October 1, 2021, Zee Business Managing Editor Anil Singhvi in his listing preview expected a bumper listing for Paras Defence and Space Technologies shares. The initial public offer of the company was subscribed for 304 times between September 21-23, 2021.   

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The Managing Editor expected Paras Defence shares to list between Rs 400-450 per share range against issue price of Rs 175 per share and suggests investors keep stop loss of Rs 350 per share. 

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After listing the shares of Paras Defence is likely to continue surging, if any fund companies pick up the company’s shares then that could act as trigger for more growth in share price, Singhvi added. 

The Managing Editor in his IPO preview had suggested to subscribe to this share sale for bumper listing gains along with a long-term perspective investment. He, apparently, had predicted, the issue would get a bumper response provided the business model of the company. 

Singhvi had also said that the sector, such as defence and aerospace, gets huge interest from the market being a unique business model and it can’t be done without deep domain knowledge. 

The IPO had received bids for 2,17,26,31,875 shares against 71,40,793 shares on offer, according to an update on the NSE. 

The offer received massive response from non-institutional investors category, as it subscribed 927.70 times, followed by Qualified Institutional Buyers (QIBs) 169.65 times and Retail Individual Investors (RIIs) applied 112.81 times in three days. 

The IPO includes a fresh issue of up to Rs 140.6 crore and an offer for sale of up to 17,24,490 equity shares with a price range set at Rs 165-175 apiece. The company had mobilised a little over Rs 51 crore from anchor investors a day before the IPO launch on Monday (September 20, 2021). 

The net proceeds of the fresh issue would be used to fund capital expenditure requirements, to support incremental working capital needs, and repayment or prepayment of loans availed by the company.