Shares of Paras Defence and Space Technologies were in very high demand among investors during the three-day share sale via initial public offering (IPO) which ended on Thursday. Paras Defence IPO was subscribed a whopping 304 times, according to data on the stock exchanges. Over 200 crore bids were received for Paras Defence shares compared with 71.4 lakh shares on the offer. A total of 30.66 crore bids were received at the cut-off price, data from the National Stock Exchange showed.
The qualified institutional buyers (QIBs), which showed lack of interest in the first two days of the IPO, leapt on to the issue on the last day as the portion reserved for them was subscribed 90.48 times. Foreign institutional investors placed 3.73 crore bids for Paras Defence shares while domestic Financial Institutions (Banks/ Financial Institutions (FIs)/ Insurance Companies) placed bids for 6.71 crore shares.
Non institutional investors also showed keen interest in Paras Defence shares as the portion reserved for them was subscribed 435 times and pie reserved for the retail investors was subscribed 61 times.
Paras Defence priced its shares in the band of Rs 165 to 175 per share in the IPO which ended today. A retail investor was allowed to place bids for Paras Defence shares in a lot size of 85 shares up to maximum of 13 lots.
The company will utilise the IPO proceeds to purchase machinery and equipment, fund incremental working capital requirements and for general corporate purposes.
The Mumbai-based Paras Defence and Space Technologies, which is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products, is planning to raise Rs 170.78 crore in the IPO which consists of fresh issue of Rs 140.60 crore and an offer for sale of Rs 30.18 crore.
Anand Rathi Securities was the book running lead manager for the IPO while Link Intime India Private Limited is the registrar to the issue.