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IPO Update: Paras Defence IPO subscribed 304.26 times on last day

IPO Update: Paras Defence IPO subscribed 304.26 times on last day

According to the subscription data available on the exchanges till 17:00 IST, the offer has received bids for 2,17,26,31,875 equity shares against the IPO size of over 71,40,793 equity shares.

IPO Update: Paras Defence IPO subscribed 304.26 times on last day IPO Update: Paras Defence IPO subscribed 304.26 times on last day

The initial public offer (IPO) of Paras Defence and Space Technologies has been subscribed 304.26 times on September 23, the last day of bidding. The price band has been fixed at Rs 165 to Rs 175 per equity share.

According to the subscription data available on the exchanges till 17:00 IST, the offer has received bids for 2,17,26,31,875 equity shares against the IPO size of over 71,40,793 equity shares.

The IPO comprises fresh issuance of shares worth Rs 140.6 crore and an offer of sale (OFS) of up to 17,24,490 equity stocks by promoters and existing shareholders.

Those selling shares on the OFS are promoters -- Sharad Virji Shah, Munjal Sharad Shah -- and individual selling shareholders are -- Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan.

The company has allotted 29,27,485 equity shares to anchor investors at Rs 175 apiece, valuing the transaction at Rs 51.23 crore, according to a circular uploaded on the BSE website.

Proceeds of the fresh issue would be used to fund capital expenditure requirements, to support incremental working capital needs and repayment or prepayment of loans availed by the company.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
 
The company is engaged in designing, developing, manufacturing and testing a wide range of defence and space engineering products and solutions. Anand Rathi Advisors is the book running lead manager to the issue.
 
The equity shares of the company would be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The tentative date for allotment of shares is September 28, 2021.