The stock market debut of Paras Defence and Space Technologies

Laxmi Khuman

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The stock market debut of Paras Defence and Space Technologies was a massive success, with shares up 171 percent over the initial public offering price.

About Paras Defence

Paras Defence, founded in 2009, specialises in the design, development, manufacturing, and testing of a wide range of defence and space engineering products and solutions.

Below are the five key product categories that the company offers.

1) Defence and space optics2) Heavy engineering3) Defence electronics4) Electro magnetic pulse (EMP) protection solution5) Niche technologies

What the Company provides ?

Paras Defence and Space Technologies is the only Indian business with design capabilities for space-optics and opto-mechanical assemblies, and is a prominent provider of optics for a variety of Indian defence and space applications.

In the defence sector, the organisation also provides bespoke turnkey solutions. The company has teamed with some of the world's best technological corporations to indigenize innovative technologies for the Indian market in the defence and space industries.

In Maharashtra, the company operates two manufacturing units and is currently expanding its current site in Nerul, Navi Mumbai.

What Competitive Advantages the company offers ?

  • For defence and space applications, a wide range of products and solutions are available.
  • One of India's few optics manufacturers for space and defence applications.
  • The government's "Atmanirbhar Bharat" and "Make in India" programmes are connected with the company's offerings.
  • Strong research and development capability with a focus on innovation.
  • Strong customer relationships with government departments and agencies.
  • Management has a lot of experience.

Hefty Premium Listing

The IPO of Paras Defense was launched this morning at a hefty premium of 171 percent.

The IPO raised a total of 170.78 crores for the company & was oversubscribed 304.56 times by active investors.

On the first day, Paras Defence was completely sold out. It was listed on the stock exchange for 467 rupees on the NSE and 500 rupees on the BSE, roughly three times the issue price.

The company proposed a fresh issue of 140.6 crore with 17,24,490 equity shares for sale at a price of 165-175 per share.

What lead to a successful listing ?

On Friday, Paras Defence and Space Technologies made a strong debut on the stock market. The robust IPO subscription, stable financials, and unique business drove the company towards a successful listing.

There are no comparable companies for the company and Paras Defence is a beneficiary of the government's "Atmanirbhar Bharat" and "Make in India" programmes.

The firm is built on strong fundamentals, remarkable business ethics, and a customer-centric strategy as we strive to become India's most important military and space organisation.

Analysts suggest that the price will be lowered upon listing due to the low ROCE and high PE at the projected price band.

Future Aspects !!!

The company has significant R&D skills and a strong client connection with government arms and government agencies, with a focus on innovation.

In addition to all of the foregoing, the company has a strong and experienced management team.

Investors with a long-term investment horizon may consider staying with Paras Defence in light of all of these competitive advantages.