Paras Defence and Space Technologies IPO: Today is the last day to subscribe to Paras Defense and Space Technologies IPO and till now this IPO has been subscribed 220 times. Talking about the primary market, its shares are showing tremendous growth and it is trading at a premium of Rs 255 i.e. 146 percent over the IPO price. The price band for this IPO has been fixed at Rs 165-175 per share.
So far, the share reserved for Qualified Institutional Buyers (QIBs) under the issue has been subscribed 36 times while the share reserved for non-institutional investors (NII) has been subscribed 750 times. The portion reserved for retail investors is subscribed 97 times.
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This is the opinion of experts regarding investment
- With the money raised through the IPO, Paras Defense and Space Technology plans to increase its production capacity and its presence globally. Analysts believe that the company’s focus will continue to be on innovation and development, which is essential to remain competitive. Apart from this, the company plans to further diversify its products and solutions through R&D and partnerships with foreign technology companies.
- According to analysts at Religare Broking, the company’s financial performance in the last three financial years has not been significant. The biggest risk facing Paras Defense and Space is the reduction in the allocation of defence and space budget by the government and 60 percent of its revenue comes only from customers.
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- According to analysts at Reliance Securities, the valuation of Paras Defense IPO is 43x F21 earnings, which is not looking attractive. According to the company, which has no piers to compare, other defence companies such as Hindustan Aeronautics (HAL) and Bharat Dynamics are trading at a discount despite generating healthy cash flows. According to analysts, there is a possibility of better growth in the defence sector in India due to self-reliant India and Make in India. Apart from this, there are some products of Paras Defense and Space Technology which have been included in the list of 101 items by the Ministry of Defense’s Department of Military Affairs, whose imports are banned, this will increase the order book of the company.
(Article: Surbhi Jain)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)