Paras Defence, as was indicated by the grey market premium, got a bumper listing, beating all previous listing records. It got listed at Rs.475 v/s IPO price of Rs.175.
This kind of premium listing was expected as the IPO was subscribed by an overwhelming 304 times. The QIBs portion was subscribed 170 times, HNIs by a huge, jaw-dropping 923 times and retail investors by 113 times.
In our IPO Analysis, we had concluded, “FY22 results are expected to show healthy YoY growth, which, coupled with inexpensive valuations, make it an attractive opportunistic bet over the short term.
However, small size of operations, with inconsistent profit track record can make it risky over the longer term, not qualifying the share as a portfolio pick.”