Paras Defence IPO Subscribed 304 Times, The Most So Far In 2021
Paras Defence & Space Technologies Ltd. became the most-subscribed issue of the year so far, with the offer getting subscribed more than 300 times on the final day.
The issue overtook MTAR Technologies Ltd., which was subscribed nearly 201 times. This is also the most subscribed initial share sale since at least 2017, when Salasar Techno Engineering Ltd. was subscribed 273 times.
The Rs 170.8-crore IPO by the defence engineering firm received interest from all categories. Demand was led by non-institutional investors, including wealthy investors, portfolio managers and other funds, that largely invest for listing-day gains. Shares allocated for this category were subscribed 927.70 times.
The IPO, according to the red herring prospectus, comprises a fresh issue of 80.34 lakh shares and an offer-for-sale of 17.24 lakh shares by promoter shareholders and other investors. The price band is fixed at Rs 165-175 apiece.
The offer was subscribed 16.57 times and 40.57 times at the end of day 1 and day 2, respectively.
The Navi Mumbai-based defence and space engineering company is seeking a market value of Rs 683 crore at the upper end of the price band.
The company aims to utilise the funds by expanding capacity, augmenting working capital requirement and repaying certain borrowings.
Subscription Details: Day 3
The IPO was subscribed 304.26 times as of 5 p.m. on Sept. 23.
Institutional investors: 169.65 times.
Non-institutional investors: 927.70 times.
Retail investors: 112.81 times.