Paramount Dye Tec IPO Overview
Paramount Dye Tec, a prominent player in the waste recycling fibers and yarn manufacturing sector, has launched its SME IPO to raise approximately ₹28 crore. The company’s initial public offering opened for subscription on September 30, 2023, and is set to close on October 3, 2023, ahead of the anticipated share listing on the NSE SME platform scheduled for October 8, 2023. This is a significant step for the company as it aims to enhance its manufacturing capabilities and reduce existing debts while contributing to the burgeoning textile industry.
Key Dates in the IPO Process
The following table outlines the important dates related to the Paramount Dye Tec IPO:
| Event | Date |
|---|---|
| IPO Opening Date | September 30, 2023 |
| IPO Closing Date | October 3, 2023 |
| Final Allotment Date | October 4, 2023 |
| Listing Date | October 8, 2023 |
Current Subscription Status
As of midday on the opening day, Paramount Dye Tec’s IPO has recorded significant interest from retail investors. With 145 applications received, there are bids for 1,86,000 shares, indicating a strong start for the SME IPO. Retail individual investors (RIIs) have made 139 applications amounting to 1,66,800 shares, where 1,22,400 shares were bid at the cut-off price. On the other hand, non-institutional investors (NIIs) have submitted 6 applications for 19,200 shares, showing varying interest levels within the market. Notably, there have been no recorded bids from qualified institutional buyers (QIBs).
IPO Price Band and Lot Size
The price band for the Paramount Dye Tec IPO is set between ₹111 and ₹117 per share, allowing investors to bid for a minimum lot size of 1,200 shares. This pricing strategy targets a broad spectrum of investors while ensuring an attractive entry point into a growing sector.
Grey Market Trends
Market activity for the shares of Paramount Dye Tec in the grey market has been relatively subdued, with no grey market premium (GMP) observed ahead of the IPO opening. Such conditions may reflect cautious investor sentiment or a wait-and-see approach as the final listing date approaches.
Company Profile and Financial Insights
Paramount Dye Tec has established itself as a specialization in manufacturing high-quality synthetic fibers and yarns for the B2B textile industry, with products that include acrylic yarn, polyester yarn, wool yarn, and more. For the financial year ending March 2024, the company reported total revenue of ₹23.67 crore, alongside a net profit of ₹3.54 crore, underscoring its operational efficiency and market potential.
Utilization of IPO Proceeds
The net proceeds from the IPO are earmarked for various strategic initiatives, such as setting up a new manufacturing unit, repaying existing debts, covering land registry expenses, and fulfilling other corporate requirements. This financial strategy is poised to bolster the company’s growth trajectory.
Issue Breakdown
For the IPO, the allocation of shares is structured as follows:
- 50% reserved for Qualified Institutional Buyers (QIBs)
- 35% reserved for Retail Individual Investors (RIIs)
- 15% reserved for Non-Institutional Investors (NIIs)
Conclusion
With its solid foundation in the textile industry and a promising IPO, Paramount Dye Tec is well-positioned for significant growth. Investors looking for opportunities in the SME segment may find this IPO appealing as the company endeavors to expand its operations and market reach.
