Paras Defence & Space Technologies IPO Subscription Day-1

The Rs.170.78 crore IPO of Paras Defence & Space Technologies, consisting of a fresh issue of Rs.140.60 crore and an offer for sale or OFS of Rs.30.18 crore, was heavily oversubscribed on Day-1 itself. As per the combined bid details put out by the BSE, Paras Defence & Space Technologies IPO was subscribed 16.57X overall, with bulk of the demand coming from the retail segment followed by HNI segment. The issue closes on 23rd September.

As of close of 21 September, out of the 71.41 lakh shares on offer in the IPO, Paras Defence & Space Technologies saw bids for 1,182.92 lakh shares. This implies an overall subscription of 16.57X. The granular break-up of subscriptions were tilted in favour of retail investors but HNI investors were surprisingly robust on the first day of the IPO. QIB bids will typically come in only on the last day of the IPO.

Paras Defence & Space Technologies IPO Subscription Day-1

QIB Portion

The QIB subscription was subscribed just 0.01 times at the end of Day-1. On 20 September, Paras Defence & Space Technologies did an anchor placement of 29.275 lakh shares at the upper end of the price band of Rs.175, raising Rs.51.23 crore. The list of QIB investors including a number of marquee names like Ashoka India Equity, Abakkus Emerging Opportunities Fund, Saint Capital, Nippon India Fund and HDFC Mutual Fund. 

The QIB portion (net of anchor allocation) has a quota of 20.18 lakh shares of which it has got bids for just 0.24 lakh shares, implying a subscription ratio of just 0.01X for QIBs at the end of Day-1. QIB bids typically get bunched on the last day, but anchor response does show good interest.

HNI Portion

The HNI portion got subscribed 3.77X (getting applications for 57.94 lakh shares against the quota of 15.37 lakh shares). This is a surprisingly robust response on Day-1 and could be due to the small size of the IPO. Bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better.

Retail Individuals

The retail portion was subscribed a whopping 31.36X at the end of Day-1, showing strong retail appetite. For retail investors; out of the 35.86 lakh shares on offer, valid bids were received for 1,124.74 lakh shares, which included bids for 848.87 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.165-Rs175) and will close for subscription on 23rd September.

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