The much-anticipated Paramount Dye Tec IPO is set to open for subscription from September 30, 2024, to October 3, 2024. This IPO is generating a lot of buzzes, given the company’s focus on sustainability through the recycling of synthetic waste fibres for the textile industry. Here’s a breakdown of all the key details you need to know.
Paramount Dye Tec IPO 2024: Details, Financials, Timeline and More
Paramount Dye Tec: A Sustainable Approach
Founded in 2014, Paramount Dye Tec Limited is an innovative player in the textile industry, known for producing high-quality yarn by recycling synthetic waste fibers. The company operates two manufacturing units in Punjab, adhering to ISO 9001:2015 and GMP standards. The product line includes a wide range of yarns such as acrylic, polyester, nylon, wool, and various blends. Paramount also engages in the trade of acrylic cloth and other yarn products, setting a benchmark for eco-friendly and cost-efficient textile solutions.
Paramount Dye Tec IPO Details
- IPO Date: September 30 to October 3, 2024
- Listing Date: October 8, 2024 (tentative)
- Price Band: ₹111 to ₹117 per share
- Lot Size: 1,200 shares
- Total Issue Size: 2,430,000 shares (₹28.43 crores)
- Issue Type: Book Built Issue IPO
- Listing: NSE SME
Schedule
- UPI Mandate Deadline: October 3, 2024 (5 PM)
- Allotment Finalization: October 4, 2024
- Refund Initiation: October 7, 2024
- Share Credit: October 7, 2024
- Listing Date: October 8, 2024
Financials: A Look at the Numbers
Paramount Dye Tec has shown significant growth in its assets, revenue, and profitability over the past few years. As of March 31, 2024, the company reported:
- Total Assets: ₹5,549.65 Lakhs
- Revenue: ₹2,367.9 Lakhs
- Profit After Tax: ₹354.09 Lakhs
- Total Borrowings: ₹1,627.37 Lakhs
This strong financial performance, coupled with a clear focus on sustainability, makes Paramount Dye Tec a compelling investment option.
Utilization of IPO Proceeds
The IPO aims to raise ₹28.43 crores, which will be allocated as follows:
- Setting up a new manufacturing unit: ₹16.00 crores (56.29%)
- Debt reduction: ₹4.50 crores (15.83%)
- Expenses for land registry: ₹1.00 crore (3.52%)
- General corporate purposes: ₹6.93 crores (24.36%)
Strengths
- Sustainability: The company recycles synthetic waste fibers, reducing environmental impact.
- Cost Efficiency: With cost-effective production methods, Paramount offers competitive pricing while maintaining high margins.
- Integrated Operations: The company’s in-house fiber and yarn production streamlines the supply chain, reducing customer lead times.
- High Spinning Capacity: The increased spinning capacity boosts profitability by efficiently using in-house fibers.
Risks
While the company shows great promise, there are some risks to consider:
- Single Business Dependency: Reliance on one segment increases vulnerability to market fluctuations.
- Supplier Risks: Dependency on a few suppliers could lead to disruptions in production.
- Raw Material Fluctuations: Changes in raw material prices could affect profitability.
- Payment Delays: Any delays in client payments could strain cash flow and impact growth.
How to Apply for Paramount Dye Tec IPO?
Retail investors can participate in the IPO by placing a minimum bid for 1 lot of 1,200 shares, requiring an investment of ₹140,400. HNI investors need to apply for at least 2 lots, amounting to ₹280,800.
The IPO allotment will be managed by Bigshare Services Pvt Ltd, with Gretex Corporate Services as the lead manager.
Conclusion
Paramount Dye Tec’s IPO offers an opportunity to invest in a company with a strong focus on sustainability, solid financial growth, and a clear plan for future expansion. With a competitive price band and a promising future, this IPO could be a great addition to your investment portfolio. Keep an eye out for the allotment and listing dates to make the most of this opportunity!
FAQs
1. What are the dates for the Paramount Dye Tec IPO?
Issue Open Date: September 30, 2024
Issue Close Date: October 3, 2024
Allotment Finalization: October 4, 2024
Refund Initiation: October 7, 2024
Share Credit: October 7, 2024
Listing Date: October 8, 2024 (tentative)
2. What is the price band for the Paramount Dye Tec IPO?
The price band is set between ₹111 to ₹117 per share.
3. How can I apply for the Paramount Dye Tec IPO?
You can apply through your broker or via UPI by submitting a bid on NSE SME. You will need to have a Demat account, and you can use your broker’s platform to place your bid.
4. What is the minimum investment for retail investors?
The minimum investment for retail investors is ₹140,400, as the minimum lot size is 1,200 shares.
5. What is the lot size for the Paramount Dye Tec IPO?
The total issue size is ₹28.43 crores with a fresh issue of 2,430,000 shares.
6. What is the total issue size of the Paramount Dye Tec IPO?
The total issue size is ₹28.43 crores with a fresh issue of 2,430,000 shares.
7. How will the IPO proceeds be used?
The proceeds will be used for:Setting up a new manufacturing unit: ₹16.00 crores (56.29%)
Debt reduction: ₹4.50 crores (15.83%)
Land registry expenses: ₹1.00 crore (3.52%)
General corporate purposes: ₹6.93 crores (24.36%)
8. Who is the lead manager for the Paramount Dye Tec IPO?
Gretex Corporate Services Limited is the book running lead manager.
9. What are the company’s key strengths?
Sustainability: Paramount Dye Tec uses recycled synthetic fibers to produce yarn.
Cost Efficiency: The company offers competitive pricing with high margins.
Integrated Operations: In-house fiber and yarn production reduce lead times and improve profitability.
10. What are the risks associated with the IPO?
The company’s dependency on a single business segment and a limited number of suppliers are notable risks.
Fluctuations in raw material prices and delayed payments from clients could also impact profitability.
