Paras Defence share price: At 171% premium, Paras Defence logs year’s best listing

Mumbai: Paras Defence and Space Technologies listed at a 171 per cent premium over its IPO price of Rs 175 on Friday – the strongest stock market debut so far in 2021. Analysts are recommending booking profits in the stock. The stock ended up 185 per cent at Rs 498.75 after listing at Rs 475 earlier in the day.

The Rs 170.8-crore IPO of Paras Defence, which was open for subscription between September 21 and 23, was subscribed 304 times.

The quota reserved for qualified institutional buyers was subscribed 170 times, non-institutional investors’ quota was subscribed 927.7 times and the retail category saw 113 times subscription.

Analysts said the strong appetite for the shares has been on account of the company’s strong order book.

“Listing has been at higher-than-expected levels, rewarding both retail and HNIs, but listing profits of three times (over the issue price) and listing in the T2T segment calls for profit booking,” said Geetanjali Kedia, senior research analyst at SPTulsian.com.

Kedia says the stock is now trading at Price to Earnings (PE) ratio of 45 times on FY22 estimates compared to 15 times at the IPO price.