Paras Defence shares’ October 1 debut listed with 171% premium over issue price
Paras Defence and Space Technologies shares that debuted on the country’s bourses made it a stellar event today, making investors and observers sit up and notice how well the company would push the coming days ahead of them.
The stock opened with a 171 per cent premium over the issue price. Paras Defence and Space Technologies hit the market by opening at Rs 469 on the NSE and thereby posted a 168 per cent premium to its higher end of the offer price of Rs 175. On the BSE, the share was listed at Rs 475.
The Paras Defence stock has been indeed the most deliberated upon over the past few days and investors had been looking forward to seeing how it would perform. It may be noted that the IPO was oversubscribed 304.26 times.
It has already been reported that the share price band was fixed at Rs 165-175 per share. Market monitors state that the Rs 171-crore public issue received bids of over 217.26 crore shares against the total issue size of over 71.40 lakh shares.
A private sector player which is into designing, developing, manufacturing and testing a vast array of defence and space engineering products and solutions, Paras Defence and Space Technologies Ltd stand out in the defence business scenario as a leader in the indigenously designed developed and manufactured category.
With defence and space applications in its portfolio, the company is known for its high precision optics products used in the space and defence sectors in India. Aided by well-defined research and development capabilities that have a focus on innovation, Paras Defence and Space Technologies Ltd is one prominent player that would benefit a lot from the Union government’s Atmanirbhar Bharat and Make in India initiatives.
Strong order book gives Paras Defence good advantage
The company also boasts a strong order book, which would give it a stronger pitch in the sector it operates in, going ahead. Statistics available state that the company’s order book as of June 30, 2021, stood at Rs 3,049.92 million.
Paras Defence had posted a total income of Rs 1,446.07 million for the fiscal ending March 31, 2021. Profit after tax stood at Rs 157.86 million during the period.
Apart from having a customer base that comprises government organizations working on defence and space research and also defence public sector companies such as Bharat Dynamics Ltd, Bharat Electronics Ltd, and Hindustan Aeronautics Ltd, it also supplies to private corporations such as Tata Consultancy Services, Astra-Rafael Comsys and more.
Globally, it services Belgium-based Advanced Mechanical and Optical Systems (AMOS); Israeli company Chaban; and also South Korean firms Tae Young Optics Company and Green Optics.