Paras Defence Provides Return of More Than 300% in Just 3 Months

The public issue of Paras Defence and Space Technologies made its Dalal Street debut in September 2021. With an Initial price band of Rs. 165 to Rs. 175, this public listed at a premium of about 170% on BSE and NSE on 1 October 2021.

This was an early indication of the promise that this public issue holds, and since then, it has not failed to deliver. After 3 months, Paras Defence is providing a return of more than 300%, which enlists it as one of the multi-bagger IPOs to keep a tab on in the coming months.

Nonetheless, let’s move on to see how things unfolded in these last few months.

Price History of Paras Defence

The debut of Paras Defence on NSE and BSE was at Rs. 469 and Rs. 475 respectively. After this notable debut, this stock continued its climb and reached an all-time high of Rs. 1258.20 on 22 October 2021. Hence, multi-bagger returns for its investors within a month on the listing.

However, after scaling the highs, Paras Defence came down and had been trading sideways for the past two months. On 31 December 2021, the share price of Paras Defence was Rs. 743 per share, and on 6 January 2022, at the time of writing, this stock was trading at Rs. 726 per unit.

Therefore, if an investor holds on to this stock following its allocation, he/she would receive a return of 325%.

To illustrate this point further.

According to the Draft Red Herring Prospectus of Paras Defence IPO, one lot of this public offering included 85 shares. This means the nominal investment here was 85 X Rs. 175 = Rs. 14,875.

Now, let’s say one held on to it till 31 December 2021. In that case, that individual’s earning would have been Rs. 14,875 X (743/175) = Rs. 63,155

Similarly, individuals who have missed out on Paras Defence shares during IPO allotment and bought them after listing could gain similar returns. For instance, you have bought Paras Defence shares at Rs. 492 per share as the closing price of the listing date. Now at this price point, if you had invested Rs. 1 lakh, by the end of 2021, you would have got a return of Rs. 1.5 lakh.

This has been a common affair with shares of Paras Defence and other multi-baggers of 2021.

Other Multibagger IPOs of 2021

Besides Paras Defence, 14 other companies out of the 63 that went public this year provided similar returns. Here are some other multibagger IPOs of 2021 –

1. Latent View Analytics
2. Nureca
3. Clean Science and Technologies
4. MTAR Technologies
5. Barbeque Nation Hospitality
6. Laxmi Organic Industry
7. Sigachi Industries
8. EaseMyTrip
9. GR Infraprojects
10. Sona BLW Precision Forgings
11. Macrotech Developers
12. Stove Kraft Limited
13. Nazara Technologies
14. Tatva Chintan Pharma Chem Ltd.

An interesting fact to take note of here is that, 11 out of these 15 companies had a public issue in that range of Rs. 100 to Rs. 600 crores.

Parting Thoughts

Looking at the performance of Paras Defence shares in the past couple of months, one can say that it is an exciting investment opportunity. However, if you are planning to put your money on Paras Defence, it is ideal to learn more about this share in detail before doing so.

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Source: Livemint

Frequently Asked Questions

1. What is the current market capitalisation of Paras Defence and Space Technologies?

The current market capitalisation of Paras Defence and Space Technologies is Rs. 2832 crores.

2. What is the current sector PE of Paras Defence and Space Technologies?

The current sector PE of Paras Defence and Space Technologies is 60.14.

3. What is the face value of shares of Paras Defence and Space Technologies?

The face value of Paras Defence and Space Technologies’ shares is Rs. 10 per share.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.