Paras Defence and Space Technologies stock made a robust listing on the stock exchanges on October 1, 2021, despite the overall weak market sentiment. Shares of Paras Defence and Space Technologies opened for trading at Rs 475 apiece, up 171% or Rs 300 per share from the issue price of 175 per share.
Paras Defence and Space Technologies are primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. The issue of the company was worth Rs 1,700 million on the higher end of the price band and was a mix of fresh issue of equity shares and an offer for sale (OFS) by existing shareholders.
Commenting on the IPO, Hemang Jani, Head, Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services opined, "Paras Defence and Space Technologies had a stellar debut today on bourses given its niche presence in the defence and space. It caters to optics, electronics, EMP protection solutions and heavy engineering segments in the defence/ space where GoI's outlays is expected to increase at 16% CAGR to over USD 14.5 billion by 2031."
"Paras would be specially focusing on optics and drones which now forms ~67% of the order book (OB; Rs 3 billion). It is looking to tap import substitution opportunities under GoI's Atmanirbhar Bharat and 'Make In India' initiatives. Thus, we like Paras given its complex/wide product portfolio, presence in niche defense/space, strong client relationship and high entry barriers. Given the huge impetus on the defense by the government, the stock presents good opportunity for investors to participate in this niche space," he added.
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