Home / Markets / Ipo /  Paras Defence IPO: What GMP (grey market premium) signals ahead of share listing
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Paras Defence IPO: After finalisation of share allotment, all eyes are now set on Paras Defence IPO listing date, which is likely on 1st October 2021. 170.78 crore public issue of the defence company got subscribed 304.26 times and now market observers and lucky bidders are eagerly waiting for the listing of defence company’s shares at Indian bourses. Meanwhile, after record subscription of Paras Defence and Space Technologies IPO, grey market is also signaling about the possible listing that one can expect.

Grey market predicts strong listing of Paras Defence shares

According to market observers, Paras Defence IPO GMP today is 200, which is 12 lower from its yesterday's grey market premium of 212. They said that even after fall in Paras Defence IPO grey market premium, the defence company’s share has been trading at more than 100 per cent premium in the grey market since it got opened for subscription. This reflects strong listing of Paras Defence shares at Indian bourses, said market observers.

Paras Defence IPO GMP (grey market premium)

Market observers said that Paras Defence IPO GMP on Tuesday was 230 but it has come down to 200 today. However, they maintained that 200 grey market premium is around 115 per cent higher from the price band of 165 to 175 per equity share. They went on to add that Paras Defence IPO grey market price has remained above 200 that means grey market is expecting more than 100 per cent listing gain from the public issue.

What this GMP mean

As Paras Defence IPO GMP today is 200, this simply means that grey market is expecting 200 listing gain from the public issue. So, the expected listing price of Paras Defence shares min the grey market today is around 375 ( 175 + 200) — around 115 per cent higher from its upper price band of 175 per equity share.

Speaking on Paras Defence share listing hype getting created in the grey market; Abhay Doshi, Founder at said, "The increase in fancy is mostly due to a tiny sized issue which got a record breaking subscription." However, Doshi maintained that grey market premium is an unofficial data and one should not rely on it blindly. It's financials of the company that one should look at rather GMP.

Highlighting the financials of Paras Defence company; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the FY-21 adjusted EPS of 4.05 on the post-issue basis, the company is going to list at a P/E multiple of 43.23 with a market cap of 6,825 mn. There are no listed entities in India whose business portfolio is comparable with that of the company’s business. The company offers a wide range of products and solutions for both defense and space applications and is well-positioned to benefit from the Government’s “Atmanirbhar Bharat" and “Make in India" initiatives."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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