Paras Defence & Space Technologies IPO Subscription Day - 2

Paras Defence IPO subscription Day 2
IPO
by 5paisa Research Team 22/09/2021

The Rs.170.78 crore IPO of Paras Defence & Space Technologies consists of a fresh issue of Rs.140.60 crore and an offer for sale or OFS of Rs.30.18 crore. The issue was heavily oversubscribed on Day-1 itself and further built up on Day 2. As per the combined bid details put out by the BSE, Paras Defence & Space Technologies IPO was subscribed 40.57X overall at the end of Day-2 of the IPO. The bulk of the demand came from retail segment followed by HNI segment. The issue closes on Thursday, 23rd September.

As of close of 22nd September, out of the 71.41 lakh shares on offer in the IPO, Paras Defence & Space Technologies saw bids for 2,896.93 lakh shares. This implies an overall subscription of 40.57X. The granular break-up of subscriptions were tilted in favour of retail investors but HNI investors have been surprisingly robust on the first two days of the IPO, while even the QIB portion got more than fully subscribed by end of Day-2. QIB bids typically surge only on the last day of the IPO.
 

Paras Defence & Space Technologies IPO Subscription Day-2

 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

1.67 Times

Non Institutional Investors (NII)

26.32 Times

Retail Individuals

68.57 Times

Employees

N.A.

Overall

40.57 times


QIB Portion

The QIB subscription was subscribed 1.67 times at the end of Day-2. On 20 September, Paras Defence & Space Technologies did an anchor placement of 29.275 lakh shares at the upper end of the price band of Rs.175, raising Rs.51.23 crore. The list of QIB investors including a number of marquee names like Ashoka India Equity, Abakkus Emerging Opportunities Fund, Saint Capital, Nippon India Fund and HDFC Mutual Fund. 

The QIB portion (net of anchor allocation) has a quota of 20.18 lakh shares of which it has got bids for 33.61 lakh shares, implying a subscription ratio of 1.67X for QIBs at the end of Day-2. QIB bids typically get bunched on the last day, but anchor response hints at solid interest levels.

HNI Portion

The HNI portion got subscribed 26.32X (getting applications for 404.57 lakh shares against the quota of 15.37 lakh shares). This is a surprisingly robust response on Day-2 and could be due to the small size of the IPO. Bulk of the funded applications and corporate applications, come in on the last day, so the actual picture will get better. 

Retail Individuals

The retail portion was subscribed a whopping 68.57X at the end of Day-2, showing strong retail appetite. For retail investors; out of the 35.86 lakh shares on offer, valid bids were received for 2,458.76 lakh shares, including bids for 1,861.27 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.165-Rs175) and closes on 23rd September.
 

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