Shares of Paras Defence and Space Technologies made a stellar debut on the stock market after its initial public offering (IPO) got a strong response.

Paras Defence got listed at Rs 475 on the Bombay Stock Exchange (BSE) — a 171 per cent premium against the issue price of Rs 175. On the National Stock Exchange (NSE), the stock opened at Rs 469, up over 168 per cent compared to the issue price.

At around 1:55 pm, the shares of Paras Defence went up even higher, trading at Rs 492.45 on the NSE and Rs 498.75 on the BSE.

Read | Paras Defence IPO: All you need to know about the company

Brokerages had earlier recommended investors to subscribe to the issue, citing a strong opening for the defence engineering company, given its strong financial position, industry position and government’s focus on indigenous defence technologies.

Before its listing, the shares of Paras Defence was trading at a premium of nearly 134 per cent on the grey market.

The Rs 171 crore public offering of the company received a stellar response as it was subscribed over 300 times. The price band of the IPO was fixed at Rs 165-175 per share.

The portion for qualified institutional buyers (QIBs) was subscribed over 169 times while the non-institutional category received 927.70 times subscription. The retail category was subscribed 112.81 times.

Paras Defence is primarily engaged in designing, developing, manufacturing and testing a variety of defence and space engineering products. It has five major product offerings including Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies.