Paragon Fine & Speciality Chemicals IPO-Review, Opening Date

Paragon Fine And Speciality Chemicals Limited - Complete Overview

Founded in 2004, Paragon Fine And Speciality Chemicals Limited is actively involved in the custom synthesis and production of specialized chemical intermediates that demand intricate and distinctive chemistry. 

The company initially began its journey as a partnership firm in 2004 and has since transformed into a leader in the custom synthesis and manufacturing of a wide spectrum of products, including Pharma Intermediates, AGRO Intermediates, Cosmetics Intermediates, Pigment Intermediates, and Dye Intermediates, catering to a diverse clientele both in India and globally.

The company's manufacturing facility, strategically located in the Viramgam District of Ahmedabad, Gujarat, spans approximately 7000 square meters and is equipped with a variety of reactors that enable the production of a wide array of chemical compounds. Additionally, the company boasts a pilot plant featuring two glass line assemblies and three reactors, dedicated to batch reaction technology.

Paragon Fine And Speciality Chemicals Limited takes pride in its in-house R&D facility, complete with well-equipped laboratories that engage in the development and innovation of catalytic processes and new chemical screening. This robust R&D capability empowers the company to optimize and streamline product development from the initial conceptualization through to commercialization.

The company's R&D team has accomplished the successful execution of multi-step synthesis and scale-up for numerous novel molecules in the realm of speciality intermediates. As a result, the company has significantly expanded its portfolio from approximately 100 products in Fiscal Year 2021 to around 140 by Fiscal Year 2023. As of March 31, 2023, the company's R&D team comprises 14 highly skilled technocrats.

 

What does the company do? 

Paragon Fine And Speciality Chemicals Limited specialize in custom synthesis and the production of speciality chemical intermediates, which require intricate and distinct chemistry.

 

 

IPO Overview

The Paragon Fine And Speciality Chemicals Limited IPO date is scheduled to open from October 26, 2023, to October 30, 2023. This SME IPO falls under the category of a Book Built Issue IPO.

The total issue size for this upcoming SME IPO amounts to ?51.66 Crores. From this total issue size, the company has allocated 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

The Paragon Fine And Speciality Chemicals Limited IPO price has been set within the range of ?95 to ?100 per share. Each lot of shares consists of 1200 shares.
Continue reading for a more comprehensive and detailed IPO review.
 

Paragon Fine And Speciality Chemicals Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	26 October 2023
IPO Closing Date	30 October 2023
IPO Allotment Date	2 November 2023
Refund initiation	3 November 2023
IPO Listing Date	7 November 2023

 

Paragon Fine And Speciality Chemicals Limited IPO Details

IPO opening & closing date	26 October to 30 October 2023
Face value	Rs. 10 per Share
Issue Price	Rs. 95 to Rs.100 per Share
Lot Size	1200 Shares
Price of 1 lot	Rs. 120,000
Issue Size	5,166,000 Shares (aggregating up to Rs. 51.66 Cr)
Offer for sale	NA
Fresh issue	5,166,000 Shares (aggregating up to Rs. 51.66 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Paragon Fine And Speciality Chemicals Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Paragon Fine And Speciality Chemicals Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Lakhs

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	7,097.84	5,750.53	4,983.26
Total Revenue	10,501.19	8,457.92	8,436.94
PAT	989.21	449.02	439.77
Net worth	2,233.52	1,244.31	795.29
Reserve & Surplus	1,873.52	1,234.31	785.29
Total Borrowings	2,521.03	2,068.16	2,193.00

 

Geography-wise Revenue Bifurcation

(Amount in Lakhs)

Particulars	Fiscal 2023	Fiscal 2022	Fiscal 2021
India	6762.60	3812.20	3111.73
Outside India
1. Asia	2776.49	3404.55	4874.50
2. Europe	319.68	408.51	218.97
3. North America	367.85	657.68	120.35
Total	10226.62	8282.94	8325.55

 

Product-wise Revenue Bifurcation

(Amount in Lakhs)

Product Category	Fiscal 2023	Fiscal 2022	Fiscal 2021
Agro intermediates	915.64	1,478.56	360.95
Cosmetics Intermediates	630.07	590.15	575.32
Dyes intermediates	7,044.37	5,187.98	6,565.87
Pharma intermediates	6.66	6.31	4.84
Pigment Intermediates	108.39	-	27.32
Specialty Intermediates	1,460.57	996.03	664.63
Others	60.92	23.91	126.62
Total	10,226.62	8,282.94	8,325.55

 

Objective of the Issue 

The net proceeds from this IPO will serve the following objectives:

• Supporting capital expenditure for civil construction within the current factory premises.
• Either fully or partially repaying certain outstanding borrowings.
• Financing capital expenditure for the installation of additional plant and machinery to facilitate expansion.
• Meeting working capital needs.
• Addressing general corporate requirements.

 

Promoters and Management of Paragon Fine And Speciality Chemicals Limited

Dr. Pravinchandra Jasmat Vasolia, Kishorkumar Panchabhai Patolia, Vallabh Ratanji Savaliya, Rutesh Vallabhbhai Savalia, and Shivam Kishorbhai Patolia are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.60%

 

Peer Comparison 

Below are the  listed peers of Paragon Fine And Speciality Chemical Limited

Below are the  listed peers of Paragon Fine And Speciality Chemical Limited

Company Name	EPS	P/E	Total Income (Rs. In Crores)
Paragon Fine And Speciality Chemical Limited	6.87	-	105.01
Aether Industries Limited	10.47	100.04	667.64
Anupam Rasayan India Ltd	20.91	48.41	1610.47
Bodal Chemicals Ltd	3.03	24.16	1585.89
Deepak Nitrite Ltd	62.47	31.94	8019.64

 

IPO's Valuations

With an IPO price range of Rs. 95 to Rs. 100 per share and an EPS of Rs. 6.87, the company's P/E ratio to assess the IPO valuation, calculated based on the upper end of the issue price, amounts to 14.55.

 

Dividend Policy

According to the Paragon Fine And Speciality Chemicals Limited IPO DRHP, the company has not distributed dividends in previous years, and any potential future dividend payments will be contingent upon the company's future performance.

 

IPO's Strengths

• Diverse product portfolio with customization capabilities.
• Emphasis on research and development for harnessing intricate chemistry and technology.
• Established and enduring customer relationships spanning various regions.
• In-house manufacturing facility equipped with advanced technologies and processes.
• Commitment to quality, environmental responsibility, health, and safety.
• Demonstrated financial strength and stability.
• Seasoned Promoters and Senior Management possessing extensive domain expertise.

 

IPO Weaknesses

• The company derives a significant portion of its revenue from key customers, and it lacks long-term contracts with many of these clients.
• Relying heavily on specific industries for a significant share of its sales could potentially have adverse implications for the company's business.
• A substantial portion of the company's revenue comes from exports, making it susceptible to international trade risks.
• The company is subject to rigorous quality standards, regular inspections, and audits.
• Stringent environmental, health, and safety laws, regulations, and standards increasingly impact the company.
• Discrepancies and errors have been identified in certain corporate records of the company, specifically related to forms filed with the Registrar of Companies and other provisions of the Companies Act.
• The company faces competition from both domestic and multinational corporations in its industry.
• The company is currently involved in legal proceedings and potential litigations.
• Certain entities within the Promoter Group are engaged in a similar line of business as the company.

 

 

IPO GMP Today

The Latest GMP of Paragon Fine And Speciality Chemicals SME IPO is Rs. 55.

 

Conclusion

The company operates within a fiercely competitive industry, boasting an extensive product portfolio and a robust customer base. However, the notable surge in the company's profits during FY 23 might be viewed as a potential embellishment in preparation for the IPO. Seasoned investors are likely to scrutinize all relevant factors before considering an investment in this offering.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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