Paras Defence share makes a bumper debut, Should you Buy or Hold ?

The Paras Defence and Space Technologies scrip was listed on the BSE at Rs 475.00 per share, a gain of 168 percent over its offer price of Rs 175.00.

The stock of Paras Defence made a great launch on Indian exchanges today. The defence stock was listed on the NSE at a price of 469, resulting in a 168 percent gain for the lucky bidders. Stock market analysts, on the other hand, remain bullish on the counter because the public offering was tiny and properly priced. According to them, the company’s order book is fairly solid. Those who received Paras Defence shares should keep the counter, while those who did not receive a share at the finalisation of the allotment procedure should purchase the counter at the current price.

The stock continued its momentum and hit the initial 5 per cent upper circuit on the bourses, an intraday high of Rs 498.75 on BSE and Rs 492.45 on the NSE so far during the first few minutes of trade.

Paras Defence and Space Technologies’ initial public offering (IPO) included a fresh issuance of shares worth Rs 140.6 crore as well as an offer of sale (OFS) of up to 17,24,490 equity equities by promoters and existing shareholders.

Should you Buy or Hold ?

Ravi Singhal, Vice Chairman at GCL Securities, commented on the share price prognosis for Paras Defence, saying, “The stock of Paras Defence is a favourite among investors, and with the announcement of the PLI programme for drone producers, the stock is projected to continue rising. Those who received Paras Defence shares during the share allotment period should hold the stock with a stop loss of 440, while those who want to acquire should do so at the present market price with a one to two month objective of 580 and a stop loss of 440.”

Rahul Sharma, co-founder of Equity99, echoed Ravi Singhal’s sentiments, saying, “Paras Defence and Space Technologies is the only Indian company with design capabilities for space-optics and optomechanical assemblies, and is a leading provider of optics for a variety of Indian defence and space programmes. The organisation has teamed with some of the world’s best technological firms to indigenize breakthrough technologies in the defence and space industries for the Indian market, as well as offer bespoke turnkey defence projects.” He stated that the company has a bright future and recommended long-term investors to keep their money in the stock. He asked investors with short-term view to book profit at current market price.

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