Paras Defence and Space Technologies stock made a stellar listing on the stock exchanges today, in spite of the all round weak market place momentum. Shares of Paras Defence and Space Technologies opened for trading at Rs 475 apiece, up 171.43% or Rs 300 per share from the concern value of 175 per share. On listing, the business had a market place capitalization of Rs 1,852 crore. The IPO (Initial Public Offering) of Paras Defence and Space Technologies, concluded earlier last month, saw a enormous response from investors and was completely subscribed inside the initial hour of sale. During the 3-day bidding procedure, Paras Defence IPO was subscribed 304 instances.
Paras Defence and Space Technologies is amongst the major ‘Indigenously Designed Developed and Manufactured’ category Indian private sector providers catering to defence and space optics, defence electronics, EMP protection options and heavy engineering. The concern of the business was worth Rs 170 crore on the greater finish of the value band and was a mix of fresh concern of equity shares and an present for sale (OFS) by current shareholders.
Domestic brokerage and analysis firm Motilal Oswal had a ‘Subscribe’ rating on the concern offered its complicated/wide item portfolio, presence in niche defence space, robust client relationship and higher entry barriers. “The issue is valued at 1.9x P/BV (peers avg: ~2.4x) on a post-issue basis, which is reasonable. We believe PDSTL could benefit from government impetus on the defence and space expenditure,” analysts at Motilal Oswal had stated in a report earlier
The business has seen its income take a hit owing to covid-19 but EBITDA margins expanded through the period. Paras Defence and Space Technologies has negligible debt on its books which post IPO will additional cut down to .2x. The business plans to use the net proceeds from the IPO to acquire machinery and gear, fund incremental working capital specifications and repay or prepay all or a portion of specific borrowings/outstanding loan facilities availed by the business.