The listing of Paras Defense shares was exactly what analysts were expecting. The shares of this defense sector company are listed on BSE at Rs 475, up 171.43% from the issue price. Whereas its shares were listed on NSE with a premium of 168% at Rs 469.
Analysts were already speculating that Paras Defense shares could be listed at a premium of more than 100%. The issue price of the company was Rs 175. However, as soon as the trading of the shares started at 10 o’clock, the shares rose further. The share price of Paras Defense started trading at Rs 498.57 on BSE at 10 am as soon as the trading started.
The bids are for 217.26 crore equity shares in lieu of 71.40 lakh shares of the company. According to the company’s upper price band of Rs 175, bids of Rs 38,000 crore have been received.
The company’s issue was subscribed a record 304 times. The reserve share for retail investors was bid 112.81 times. Whereas Non-Institutional Investors (NIIs or HNIs) bid 927.70 times their share. The reserve portion for Qualified Institutional Buyers (QIBs) was subscribed 169.65 times.
Some great listings like Paras Defense
Looking at the history of IPO, Salasar Techno Engineering’s IPO, which came in 2017, was bid 273 times more. This was the record for getting maximum subscriptions at that time, which was held for nearly four years. Paras Defense broke this record on 23 September. Salasar’s IPO was listed in July 2017 at a premium of 139.35%. It made its debut on the BSE at Rs 259.15, while its issue price was Rs 108 per share.
Similarly, in January 2018, Apollo Micro Systems got 248.51 times higher bids and gave a listing gain of 73.82%. The share was listed on BSE at Rs 478, while its issue price was Rs 275.
Similarly, the IPO of Astron Paper & Board Mill was subscribed more than 243 times in December 2017 and gave a listing gain of 130%. This year also 4 IPOs got bids in the range of 160 to 200 times. These include MTAR Technologies, Tatva Chintan Pharma, Nazara Technologies and Easy Trip Planners.
Of these, MTAR Technologies gave a listing gain of 85%, Tattva Chintan Pharma 95% and Najara 79%. However, Easy Trip Planners has been an exception to all these, which listed at a premium of just 13.5%. The IPO of Easy Trip Planners was oversubscribed 159 times, so its listing profit can be considered very low.
Happiest Minds entered in September 2020 with a listing gain of 11%. Burger King’s IPO gave a return of 92%. Seeing these figures, investors’ expectations from Paras Defense’s IPO have increased.