Paramount Dye Tec IPO: Review, Valuation, Date & GMP

Paramount Dye Tec IPO-Complete Overview

Paramount Dye Tec IPO an SME IPO is a book-built issue of Rs.28.43 crore by Paramount Dye Tec Limited, which was established in January 2014. It produces yarns using recycled synthetic waste to serve the B2B market in the textile industry.

The company sells a variety of goods, including yarns and synthetic fibers that are renowned for their excellence throughout time, including acrylic, polyester, nylon, wool, and hand-knitted blends.

The villages of Mangarh and Koom Khurd in Punjab are home to the company's two manufacturing facilities. The company is accredited by ISO 9001:2015 and Good Manufacturing Practices (GMP) and has a robust Quality Management System.

The company sells acrylic cloth in addition to other goods like acrylic yarn, blended yarn, nylon, and polyester yarns.

This Paramount Dye Tec IPO is to be launched on 30 September 2024, and its ‘initial public offering’ will close on 03 October 2024. 

 

Paramount Dye Tec IPO Overview

The Rs.28.43 crore new SME IPO consists of an entirely fresh issue of 24.3 lac Shares. 

This upcoming IPO date is from September 30-October 03, 2024. Paramount Dye Tec IPO price band is Rs.111 to Rs.117 for each Share. 

The expected IPO listing date is on Tuesday, 08 October 2024, and listing at NSE and SME.

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

 

Company Financial

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Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

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Segment-wise Revenue Breakdown 

(Amount in lac)

 

State-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

 

Revenue Breakdown from Trading Activities

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The Objective of The Issue

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

• Establishing a manufacturing unit.

• Payback/Prepayment of specific debt facilities awarded to the organization.

• Costs associated with registering land that was acquired from the promoter.

• General corporate purposes.

 

Peers of Paramount Dye Tec Ltd.

As the company’s performance is for 3 months only it can’t be compared with the listed peers.

 

Evaluation

The IPO price is Rs.111 to Rs.117 for each Share. 

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.7.86 from the last year, the resulting P/E ratio is 14.12x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is NA.

 

 IPO's Strengths 

• Recycling synthetic garbage and using it as a raw material.

• Advantages of margin.

• Personalized remedies.

• Value creation with increased spindle capacity.

• Affordable products.

• Customized remedies.

• Assurance of quality.

• A more straightforward supply chain.

 

IPO’s Weaknesses

• Dependency on the textile industry's B2B sector.

• Restricted geographic reach, with Punjabi manufacturing facilities.

• Variations in the cost and availability of raw materials.

• Fierce rivalry in the textile sector.

• Changes in regulations impacting manufacturing and recycling procedures.

 

Paramount Dye Tec IPO GMP Today

Paramount Dye Tec IPO GMP has not started yet as of 27 September 2024.

IPO Timetable (Tentative)

The IPO date is from September 30 to October 03, 2024, with allotment on October 04, refund initiation on October 07, and listing on October 08, 2024.

 

Paramount Dye Tec IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 2,430,000 Shares (Rs.28.43 Cr).

Paramount Dye Tec IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,40,400 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,80,800.

 

Paramount Dye Tec IPO Reservation (% of Net Issue)

 

Promoters And Management of Paramount Dye Tec Ltd.

• Mr. Kunal Arora.

• Ms. Palki Arora.

IPO Lead Managers

• Gretex Corporate Services Limited

 

Dividend Policy

The company has not paid any dividends during the last three FYs.

Conclusion

The Paramount Dye IPO comes as an opportunity for the investors to invest in the growing SME which deals with recycled yarn. The share price is between Rs.111-117 aiming to generate a total of Rs.28.43 crore to cater for expansion, payment of debts, and general corporate purposes. The company has some strong points such as recycling and production at low costs; however, it also has some weak points like spatial constraints as well as volatility in raw material prices. Hope this blog helped you with the information you were seeking.

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: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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