Paramount Speciality Forgings Ltd IPO: Review, Date & GMP

Paramount Speciality Forgings IPO-Complete Overview

Paramount Speciality Forgings IPO an SME IPO is a book-built issue of Rs.32.34 crore by Paramount Speciality Forgings Ltd. that was established in 1994. It is an Indian steel forgings producer providing a wide variety of forged goods.

Products from the company are utilized in a variety of industrial applications, such as the petrochemical, chemical, fertilizer, oil and gas, nuclear power, and heavy engineering sectors. They are made in accordance with national and international standards.

The business operates two manufacturing sites: one in Kamothe, Maharashtra, and another in Khalapur. The company produces a variety of forged goods, such as seat, valve bodies, bonnets, self-reinforced nozzles, girth flanges, tire rings, tube sheet blanks, and long weld neck flanges.

Reputable oil and gas firms, Statutory Agencies, ISO 9001-2008, ISO 14001-2004, and BS OHSAS 18001-2007 accredit the company's closed dye factory.

This new SME IPO is to be launched on 17 September 2024, and its ‘initial public offering’ will end on 20 September 2024.

 

Paramount Speciality Forgings IPO Overview

The Rs.32.34 crore Paramount Speciality Forgings Ltd. IPO consists of a combination of a fresh issue of 48.02 lac Shares (Rs.28.33) and an offer for sale (OFS) of 6.8 lac Shares (Rs.4.01 crore). This SME IPO date is from September 17-September 20, 2024. The expected IPO listing date is Wednesday, September 25, 2024, on NSE and SME. The IPO price band is Rs.57 to Rs.59 for each Share.

The IPO with a Face Value of Rs.10 per Share offers a total issue size of 5,482,000 Shares (aggregating up to Rs.32.34 Cr.).

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

 

Company Financial

The company's revenue grew by 1% and PAT rose by 163% between the FYs concluded 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.8,179.18 lac.

• The total revenue of the company is Rs.11,363.62 lac.

• The company’s PAT is Rs.725.36 lac.

• The net worth of the company is Rs.2,291.49 lac.

• The company’s EBITDA is Rs.1,411.52 lac.
  
  

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

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Product-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

Sector-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

Geography-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

Region-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

Region-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

Geography-wise Breakdown of Revenue from Operations of Sales

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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:

• Capital outlay for the acquisition of machinery and equipment needed for the Khopoli Plant development

• General corporate purposes.

 

Peers of Paramount Speciality Forgings Ltd. 

There are no listed companies in India or abroad engaged in the same business of comparable size.

 

Evaluation

Paramount Speciality Forgings IPO price is Rs.57 to Rs.59 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.87 from the last year, the resulting P/E ratio is 12.11.

Considering the weighted EPS of Rs.2,888.59 for the last three years, the P/E ratio is 0.02.

Note: The basic EPS of the peers is for the financial year ending 31 March 2024.

 

Comparative Analysis With Listed Peers

No listed companies. So it is not possible to provide industry comparison.

 

IPO's Strengths 

• Enduring connections with clients from a variety of industries

• Manufacturing facilities

• Quality and an emphasis on client pleasure

• Management expertise and experienced promoters

• A history of sound financial performance

• Ongoing development of new products.

 

IPO’s Weaknesses

• The company business's essential operations rely on its plant and machinery. Since its manufacturing facilities are all in the same region, any disruptions in its plant and machinery maintenance or any negative comments made during the inspection of its products could lead to lower-quality services and a decline in its business.

• Local and regional issues affecting the production process could negatively impact the business.

• Variability in the cost and availability of its raw materials could negatively impact its operations and finances.

• It depends heavily on petrol and electricity, so any disruption to these sources could raise its manufacturing costs and harm the company.

• The company has experienced negative cash flows from operating, investing, and financing activities in the previous years. A sustained negative cash flow could trouble the company's expansion.
  
  

Paramount Speciality Forgings IPO GMP Today

Paramount Speciality Forgings IPO GMP today is Rs.0 as of 16 September 2024. With a price band of Rs.59, the Paramount Speciality Forgings IPO listing price (estimated) is Rs.59. 

0% is the anticipated percentage gain or loss per share.

 

IPO Timetable (Tentative)

The Paramount Speciality Forgings IPO date is from September 17 to September 20, 2024, with allotment on September 23, refund initiation on September 24, and the IPO listing date on September 25, 2024.

 

Paramount Speciality Forgings IPO Details 

 

Paramount Speciality Forgings IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,18,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,36,000.

 

Paramount Speciality Forgings IPO Reservation

 

Promoters And Management of Paramount Speciality Forgings Ltd.

• Aliasgar Roshan Hararwala

• Aliasgar Abdulla Bhagat

• Mohammed Salim Hararwala

• Abdulla Aliasgar Bhagat

• Hoozefa Saleem Hararwala

• Abbasali Salim Hararwala

• Zahid Mohamadi Hararwala

• Roshan Alihusain Hararwala.

IPO Lead Managers

• Swaraj Shares And Securities Private Limited.
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscals.

Conclusion

The company has experienced negative cash flow in operating, 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 upcoming 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: 

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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