Multibagger IPO: The year 2021 will be considered to give excellent returns to the investors of the stock market. This year, not only a good number of stocks entered the list of multibagger stocks for 2021 but 63 IPOs got listed out of which 15 gave multibagger returns to their lucky allottees. The public issue of Paras Defense and Space Technologies is one of them. The public offering of this defense company entered the primary markets in September 2021 with a fixed price band of Rs. from 165 175 per equity share. It got listed on the NSE and BSE on 1 October 2021 at a bumper premium of around 170 per cent.
History of Paras Defense Share Price
As mentioned above, Paras Defense shares made a great start 469 per share on NSE and 475 per share against its issue price on BSE from 165 175. However, the stock continued its strong performance and climbed to its all-time high 1,258.20 each level as on 22 October 2021, providing multibagger returns within one month of its listing. However, after hitting its all-time high, the defense stock has been trading sideways for the past two months 743 at each level as on 31 December 2021. Had an allottee stayed invested in the stock after the share allotment, he would have got about 325 per cent return on his money, as the defense share was offered 175 each to the bidders.
impact on investment
A large number of investors, who missed out on getting shares of Paras Defense during the allotment, bought Defense stock post listing. If an investor had bought the share of Paras Defense at a price close to the date of listing, ie 492.45 per share level, investment 1 lakh in the counter, its would have turned into 1 lakh 1.50 lakh at the end of 2021.
Impact on Investment of Allottees
As per the red herring prospectus of Paras Defense IPO, one lot of the public issue consisted of 85 Paras Defense shares, which means that the minimum investment allowed in the IPO was 14,875 ( 175 x 85). If an investor has got one lot IPO of Paras Defense and he is engaged in the counter till date, then his would have turned into 14,875 63,155 [ ₹14,875 x (743/175)],
Paras Defense Share Price Target
Investment strategy in shares of Paras Defense unveiled; Sumeet Bagdia, Executive Director, Choice Broking said, “Paras Defense shares may give breakout 750. Hence, those who have this stock in their portfolio should stay over the counter while new investors are advised to buy this defense stock above. 750 level for one month target 800 more 850 per share level. However, if the stock fails to give a breakout, in that case new investors can buy the stock. from 670 680 per share level and hold for short term target of from 800 850 per stock level.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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