Should you hold or sell paras defence IPO shares after listing

 Paras Defence IPO subscription Data:

Paras Defence IPO is going to be listed in such an IPO Indian market that all types of investors and traders were ready to invest money in it. Today 23 Sept - 2021 was the last day to apply for this IPO. But if we look at the BSE India data, Paras Defence’s IPO second day was oversubscribed by more than 40 times. If we talk about today 23 Sept 2021, then according to the data of BSE India the IPO of Paras Defence has been oversubscribed more than 275 times & Paras Defence IPO received bids of more than 197 crore equity shares against the IPO size of 71.4 lakh shares of equity.  It is a excellent subscription data for any company.  So much over subscription was expected. We had also advised on our website to subscribe to Paras Defence IPO. We had already told on our website before the opening of Paras Defence IPO that this IPO should be subscribed. If we will talk about the retail investors portion then it has oversubscribe by more than 110 times & QIB portion more than 155 times.

Before Paras Defence IPO Opening We had given advice: Paras defence IPO, should you subscribe or avoid? 

Paras Defence IPO Grey Market Price: (gmp):

Paras Defence IPO is getting a lot of repo in the grey market. The grey market price of Paras Defence IPO is running in the range of 225rs to 235rs. Even We can expect more than 235rs to 250rs grey market price of Paras Defence IPO . If we talk about Paras Defence IPO before the issue opened, then the grey market IPO price of Paras Defence IPO was running at 165rs to 175rs in Grey Market. If we fully trust the grey market price then there may be bumper listing of Paras Defence IPO. But also give an alert that the grey market price of IPO market is not always 100% correct. It has been observed in many IPO's that the IPO's listing is not according to the grey market IPO price. But there can be little trust on the grey market price of Paras Defence IPO. But a slight difference can also be seen between the listing price of Paras Defence IPO and the grey market price. But it will be right to say that Paras Defence IPO can be listed well above IPO price.

Paras Defence IPO, Hold or sell:

It is going to be very interesting question that whether the investors should hold or sell Paras defence IPO after its listing. If we will check the data of paras defence IPO subscription then share of Paras defence should list on very higher price. But For short to medium term Investors it is better to book some profit on the listing of Paras defence IPO. Because if we will trust on grey market price of Paras defence then it should be listed around 405rs to 410rs price levels which are very higher nearly 130%to 140% from the Paras defence IPO higher price band of 175rs per share. If we will track the past IPO data of some companies those were listed more than 100% from the IPO higher price band those companies are these days trading around its IPO prices again. Here we will not discuss the Names of those companies. But in the case of Paras defence, this company has very strong order book and company management is very sure about the future growth of the company as well. Now we will talk about those investors who did not get shares allotment in Paras Defence IPO, can news investors invest in Paras Defence shares?

New investors, Should you buy or sell Paras defence share after listing:

If we will check  the financials of Paras Defence & Space Company Then Company in total revenue was around 1570 crore in march 2019 &  the total revenue of the company has decreased slightly in March 2021 which came to the levels of  1447 crore. Further discussion on the company  total assets ,in March 2019, company had assets of 3300 million then we had seen bit rise in March 2021 & it came to the level of 3620 million.

If you look at the company's higher price band from 175rs, then the earning is at 43 multiples. Whatever the government's focus in Indian will remain in "Make in India" and this company will also get the benefit of the government's PLI scheme. If you look at the company's higher price band from 175rs, then the earning is at 43 multiples. Whatever the government's focus in Indian will remain in "Make in India" and this company will also get the benefit of the government's PLI scheme.

The company's business also does business in Belgium, Israel and South Korea. By doing more, the company's focus is in the Defence & Space sector, but the company also works in other sectors. Talking about the order book of the company, till the end of June, it has exceeded 300cr. Out of which the company's management said that the business of 200 crore has come from the defence segment and up to 90 crore have come from the orders from the near space segment.

Should you Buy Paras Defence share?

If we look at the business model of the company, the growth of the company is looking good. The company is also thinking of tying up with overseas companies to make drones, in which technology transfer is being thought of, this is a good thing. Investors who did not get allotment in the IPO of Paras Defence should not take too much stress. If you have to invest in Paras Defence then you can buy even after listing of IPO. But for more safe investors, it would be suggestive that the price should be allowed to settle at lower levels after profit booking and then start investing in it. Because maybe big investors try to exit from Paras Defence stock at higher levels. If this happens, the stock may come down slightly on the listing day. Paras defence may give multibagger returns in the coming days even after bumper listing. Long term investors may buy and hold paras defence stock into their portfolio. Try to book profit on higher levels. We are expecting 785rs to 850rs+ price levels in this stock in the coming months. 

Also Read: Sansera Engineering IPO, Should you hold or sell after IPO listing

Paras defence IPO listing date & Paras Defence IPO share allotment date:

Paras Defence IPO share allotment date is 28th of September 2021 & the IPO bidders which could not get IPO allotment, they will get Refund of Paras defence IPO on 29th September- 2021. Paras Defence IPO will be listed on 1st October 2021 on BSE India exchange & NSE India exchange. The investors or traders those got allotment of shares in IPO, their shares will be credit into their demat accounts on 30th September 2021.

How to check Paras Defence IPO share allotment:

Now check Paras defence IPO Allotment:

Steps to follow:

1)  Open the Website BSE india website

2)  Select IPO name “Paras defence limited IPO"

3)  Fill IPO Application Number & PAN number in required sections

4)  Tick on “no robot” box

5)  Then press submit icon button

Now you will see the status of you IPO Allotment.

 Disclaimer: The above discussion on Paras Defence share price is my personal view. My view may differ from other experts of the market. Please do your own research too.