There are many such companies this year, which have stunned investors through Initial Public Offerings (IPOs). One such company has also become Paras Defense and Space Technologies. This company has almost tripled the amount of investors betting in the IPO within 7 days.
Actually, Paras Defense and Space Technologies launched the IPO on 21 September. Through this IPO, which lasted till September 23, the company gave investors an opportunity to buy shares in lots. In fact, in IPO, you cannot buy the shares retail, but for this a lot has to be booked. Once the lot is booked, the amount lying in the account gets frozen. You cannot use it. If the IPO is not allotted to you, the account freeze amount is released.
85 Shares Lot: In one lot of Paras Defense and Space, 85 shares were placed. The price range for this lot was fixed at Rs 165-175. This means that the price of each one of the shares in the lot was fixed between Rs 165-175. The price per lot of Paras Defense had gone up to Rs 14,875 (175 x 85) against a maximum of Rs 175.
Three times profit on listing: Investors who were allotted Paras Defense IPO, their amount has increased almost three times. Today i.e. on 1 October, minutes after listing, the price per share reached Rs 498.75. Accordingly, there has been a profit of Rs 323.75 per share or up to 185 per cent.
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This means to say that the investors who have got one lot in the IPO, within seven days, their amount of Rs 14,875 has become about Rs 44 thousand. At present, the upper circuit has been put on the stock of Paras Defense. This upper circuit occurs when overbought starts happening. Let us tell you here that the stock was listed at Rs 475, while on the first day of trading, the share price also went to a low level of Rs 456. Talk about the market capital of Paras Defense is Rs 1,945.13 crore.
What the company does: Paras Defense & Space is engaged in the design, development, manufacturing and testing of a wide range of defense and space engineering products and solutions. Experts seem confident about the future of this company. According to experts, apart from the government’s new drone policy, the company can get the benefit of focus in the defense sector.