Paramount Dye Tec Limited
Paramount Dye Tec Limited(PARAMOUNT)
Total Shares
24,30,000
Issue Size
₹28.43 Cr
Price Band
₹111 – ₹117
Lot Size
1200 shares
Min. Investment
₹1,40,400
Max. Investment
₹1,40,400
Open Date
30 Sep, 2024
Close Date
03 Oct, 2024
Allotment
04 Oct, 2024
Listing
08 Oct, 2024
Max. Investment
₹1,40,400
Announced
30 Sep, 2024
Opening Date
30 Sep, 2024
Closing Date
03 Oct, 2024
Basis of Allotment
04 Oct, 2024
Initiation of Refunds
07 Oct, 2024
Credit of Shares
07 Oct, 2024
Listing Date
08 Oct, 2024
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About Paramount Dye Tec Limited IPO
Founded in January 2014, Paramount Dye Tec Limited produces yarns by recycling waste synthetic fiber, catering to the B2B segment of the textile industry.
The company offers a range of products, including synthetic fiber and yarns such as acrylic, polyester, nylon, wool, hand-knitting, and acrylic blend yarns, known for their quality, durability, and lasting excellence.
The company has two manufacturing facilities situated in Village Mangarh and Village Koom Khurd, Punjab.
Paramount Dye Tec Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 53.8% increase in shares
Paramount Dye Tec Limited IPO Financials Health
Paramount Dye Tec Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1200 | ₹1,40,400 |
| Retail Maximum | 1 | 1200 | ₹1,40,400 |
| HNI Minimum | 2 | 2400 | ₹2,80,800 |
(All values in CR)
Paramount Dye Tec Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 0.54 |
| EPS Post IPO | 5.1 |
| EPS Pre IPO | 7.85 |
| P/E Post IPO | 22.94 |
| P/E Pre IPO | 14.91 |
| PAT Margin (%) | 15.06 |
| ROCE | 16.53% |
| ROE | 11.68% |
| RoNW | 11.68% |
(All values in CR)
Strength & Risk of Paramount Dye Tec Limited IPO
1. Use of recycled synthetic waste as raw materials.
2. Margin Benefits.
3. Custom Solutions.
4. Value Addition through Enhanced Spinning Capacity.
5. Cost-effective products.
6. Tailored solutions.
7. Quality assurance.
8. Simplified supply chain.
1. We operate in a heavily regulated sector and our operations are subject to environmental, health and safety regulations that could expose us to liability, increase our cost of operations or otherwise have a material adverse effect on our results of operations and could also result in enhanced compliance obligations.
2. Majority of our revenue is dependent on single business segment i.e. manufacturing of fiber and yarns. Any adverse impact on sales of a product would adversely affect our operations and profitability.
3. Our business depends on our manufacturing facility and the loss of or shutdown of operations of the manufacturing facility on any grounds could adversely affect our business or results of operations. Further, our business involves usage of manpower and any unavailability of our employees or any strikes, work stoppages may have an adverse impact on our cash flows and results of operations.
4. ?The Company is dependent on a few suppliers for purchases of product/service. The loss of any of these large suppliers may affect our business operations.
5. We face competition in our business from organized and unorganized players, which may adversely affect our business operation and financial condition.
6. We derive a majority portion of our revenue from operations from our top 10 customers, contributing 78.18% revenue from operations for the period ended March 31, 2024. Loss of one or more of these customers or a reduction in the amount of business we obtain from them could have an adverse effect on our business, results of operations, financial condition and cash flows. Further, we do not have long-term agreements with any our customers.
7. There are outstanding proceedings involving our Company, Promoters and Directors. Any adverse decision in such proceedings may have a adverse effect on our business, results of operations and financial condition.
8. Our company has been in non-compliance of certain provisions of Companies Act, 2013, for which an application for adjudication has been filed with the ROC.
9. There are certain discrepancies / errors noticed in some of our corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.
10. The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of our Company.
Paramount Dye Tec Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| Anchor | 1.00 | 6,91,200 | 6,91,200 | 8.09 |
| HNI | 135.66 | 3,46,800 | 4,70,48,400 | 550.47 |
| Market Maker | 1.00 | 1,22,400 | 1,22,400 | 1.43 |
| QIB | 10.22 | 4,60,800 | 47,08,800 | 55.09 |
| Retail | 36.26 | 8,08,800 | 2,93,28,000 | 343.14 |
| Total | 50.16 | 16,16,400 | 8,10,85,200 | 948.7 |
Paramount Dye Tec Limited IPO GMP
Last updated 27 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 27 Sep, 2024 | 117 | ₹0 | -- | ₹117 (0.00%) | - | 27 Sep, 2024 |
| 30 Sep, 2024 | 117 | ₹0 | -- | ₹117 (0.00%) | - | 30 Sep, 2024 |
| 01 Oct, 2024 | 117 | ₹0▼ | -- | ₹117 (0.00%) | - | 01 Oct, 2024 |
| 03 Oct, 2024 | 117 | ₹23▲ | 21000 | ₹140 (19.66%) | - | 03 Oct, 2024 |
| 04 Oct, 2024 | 117 | ₹5 | 4600 | ₹122 (4.27%) | - | 04 Oct, 2024 |
| 06 Oct, 2024 | 117 | ₹5 | 4600 | ₹122 (4.27%) | - | 06 Oct, 2024 |
| 07 Oct, 2024 | 117 | ₹5 | 4600 | ₹122 (4.27%) | - | 07 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for Paramount Dye Tec Limited IPO
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Find Paramount Dye Tec Limited under the IPO section. Select it and enter your bid details — choose lot size and price (cut-off price recommended).
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Your funds will be blocked in your account until the IPO allotment process is completed.
Paramount Dye Tec Limited IPO Analysis
Overview of Paramount Dye Tec Limited IPO
Paramount Dye Tec Limited is making its public debut with an IPO, offering up to 24,30,000 equity shares. This Punjab-based company, primarily involved in the textile dyeing industry, is ready to step into the public market to fuel its next phase of growth.
Key IPO Details:
- Fresh Issue: Upto 24,30,000 equity shares
- Price Band: ?111 to ?117 per equity share
- Lot Size: Minimum of 1200 shares
- Listing: Proposed on the NSE Emerge platform
- Issue Opens: September 30, 2024
- Issue Closes: October 03, 2024
Pros and Cons of Paramount Dye Tec Limited IPO
Pros
- Strategic Industry: Positioned in the textile dyeing sector, a key player in India's extensive textile industry.
- Expansion Plans: Proceeds from the IPO will be used for business expansion, enhancing operational capacity, and debt reduction.
- Growing Market: The Indian textile industry has a robust growth outlook, providing opportunities for companies like Paramount to capitalize on increasing demand.
- Experienced Promoters: Led by Mr. Kunal Arora and Ms. Palki Arora, both seasoned professionals with in-depth industry knowledge.
Cons
- First-Time Issuer: This is Paramount Dye Tec's first public issue, which means the company lacks a formal market track record, increasing the risk for initial investors.
- Volatile Market Risk: Given the nature of SME listings, stock prices could face volatility in the early stages of trading.
- Industry-Specific Challenges: The dyeing industry faces potential challenges related to environmental regulations and fluctuating raw material costs.
- Liquidity Constraints: Listings on SME platforms like NSE Emerge tend to have lower liquidity compared to main board listings, which may limit investor exit opportunities.
Risk Factors
Market Volatility
The IPO’s success depends on sustained trading, which is not guaranteed. Market volatility, especially for SME-listed companies, is a significant concern for investors.
Industry Regulations
The dyeing industry is under stringent environmental scrutiny. Any changes in regulations could affect operational costs and profitability.
Investment Considerations
Ideal for Risk-Tolerant Investors
This IPO may be a good opportunity for investors with a higher risk appetite who are willing to invest in the SME sector with long-term potential. The company’s focus on expansion and improving operational capabilities may provide promising returns in the future.
Conclusion
The Paramount Dye Tec Limited IPO offers an interesting opportunity for investors looking to enter the textile dyeing industry. However, as with any investment, especially in the SME space, it's important to weigh the potential risks and benefits carefully.
FAQs About Paramount Dye Tec Limited Ipo
Paramount Dye Tec Limited IPO will open on 30 Sep, 2024 and close on 03 Oct, 2024. Investors must apply within this period to participate.
The Paramount Dye Tec Limited IPO price band is set between ₹111.00 and ₹117.00 per share. The minimum lot size is 1200, requiring an investment of at least ₹140400.00.
The Paramount Dye Tec Limited IPO shares are expected to be listed on 08 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Paramount Dye Tec Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Paramount Dye Tec Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.