Paramatrix Technologies IPO: Review, Valuation, Date & GMP

Paramatrix Technologies IPO-Complete Overview

Paramatrix Technologies IPO an SME IPO is a fixed price issue of Rs.33.84 crore by Paramatrix Technologies Ltd. which was founded in 2004 and provides technology solutions and software applications to large and medium-sized businesses.

The following major categories apply to the company's software applications and technology solutions (accelerators):

Digital Transformation Services- Applications Development and Maintenance (ADM), Solution Architecture and Design, Analytics, MIS, and Reporting, PERFORM (Accelerator for Employee Performance Management), PACE (Middleware Framework for Centralized Control), ITCS (Accelerator for managing Employees Share Trading Compliance), DROANA (Virtual Classroom Platform), EVENTJET (Event log monitoring & Management Solution), BULWARK (Cloud Security Posture Assessment), and PLAYMITY (SaaS-based Gamification Platform) are some examples of Digital Transformation Services.

Managed Services- Cloud & Data Support Services, Cyber Security Services, Application Managed Services.

Among the industries the business serves are BFSI, retail, manufacturing, sports, pharma, and logistics.

This new SME IPO is to be launched on 27 August 2024, and its ‘initial public offering’ will end on 30 August 2024.

Paramatrix Technologies IPO Overview

The Rs.33.84 crore Paramatrix Technologies Ltd. IPO consists of a combination of a fresh issue of 27.59 lac Shares amounting to Rs.30.35 crore and an offer for sale (OFS) of 3.18 lac Shares amounting to Rs.3.50 crore.

This SME IPO date is from August 27-August 30, 2024. The expected IPO listing date is Wednesday, September 04, 2024, on NSE and SME. Paramatrix Technologies IPO price band is Rs.110 for each Share.

To open a demat account and apply for the IPO, Click Here.

 

 

Company Financial

The company’s revenue fell by 14% and PAT decreased by 42% during FYs ending 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.3,354.2 lac.

• The total revenue of the company is Rs.2,859.93 lac.

• The company’s PAT is Rs.413.17 lac.

• The net worth of the company is Rs.3,030.25 lac.

• The company’s EBITDA is Rs.565.03 lac.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown of Sales During The Last Three Fiscals

(Amount in lac)

 

Geography-wise Revenue Breakdown of Sales During The Last Three Fiscals

(Amount in lac)

Geography	31 Mar 2024	31 Mar 2023	31 Mar 2022
India	1,264.01	1,171.22	1,240.17
Hongkong	1,054.07	1,093.38	1,003.70
Singapore	58.47	188.58	149.61
UK	422.93	383.30	334.76
Canada	-	-	4.47
Total	2799.48	2836.48	2732.71

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Capital outlay for infrastructure development.

• Acquisition of a suite of accelerators to expand service offerings.

• Geographical growth in East Asia and the Middle East.

• General corporate purposes.

Peers of Paramatrix Technologies Ltd.

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
All E Technologies Limited	10	9.75	44.31
Softsol India Ltd.	10	7.38	40.57
K Solves India Limited	10	28.81	35.3

 

Evaluation

The IPO price is Rs.110 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.72 from the last year, the resulting P/E ratio is 23.31x.

Considering the weighted EPS of Rs.6.35 for the last three years, the P/E ratio is 17.32x.Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 38.80x.

In simple words, the P/E ratio of Paramatrix Technologies IPO (23.31x), compared with the industry’s average P/E of 38.80x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry. 

IPO's Strengths 

• Recognizing and meeting the special needs of each client

• Collaborating meaningfully with partners and clients

• Keeping a reasonable turnaround time 

• Quality certifications

• It is recognized by top brands worldwide.

 

IPO’s Weaknesses

• The company plans to establish a development center with a percentage of its net proceeds. Any delay or unsuccessful establishment of the development center could hinder the company's expansion and have an impact on future operations, financial standing, and commercial goals.

• The agreements that it makes with its clients are critical to the prosperity of the business and operational results. Any breach of these contracts' conditions could have a detrimental effect on its operations and business outcomes.

• Product development is a costly, risky, and time-consuming process.

• Unidentified flaws, mistakes, or malfunctions in the software design process could cause its products and services to be less successful in the market or result in liabilities that could have a very negative influence on its business.

• The revenues, profitability, or market share could be negatively impacted if it is unable to effectively compete in the highly competitive business.

• The company had a negative cash flow from its investing and financing activities in the past FYs, sustained negative cash flow could impact its growth and business.

Para matrix Technologies IPO GMP Today

Paramatrix Technologies IPO GMP today is Rs.0 as of 27 August 2024.

IPO Timetable (Tentative)

The IPO date is from August 27 to August 30, 2024, with allotment on September 02, refund initiation on September 03, and listing on September 04, 2024.

Paramatrix Technologies IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 27, 2024, close on August 30, 2024, and offer a total issue size of 3,076,800 Shares (aggregating up to Rs.33.84 Cr) comprising a fresh issue size of 2,758,800 Shares (aggregating up to Rs.30.35 Cr) and OFS of 3,18,000 Shares (totaling up to Rs.3.50 Cr).

Paramatrix Technologies IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,32,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,64,000.

 

Paramatrix Technologies IPO Reservation

Promoters And Management of Paramatrix Technologies Ltd.

• Mukesh Keshubhai Thumar

• Bhavna Mukesh Keshubhai Thumar.

IPO Lead Managers

• Inventure Merchant Banker Services Pvt Ltd.

Dividend Policy

Conclusion

The company has experienced negative cash flow in financing and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

Click Here to stay updated with the Upcoming IPOs.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog. Hope you loved the IPO analysis Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.