Paramesu Biotech IPO
The Paramesu Biotech IPO is a book-built issue comprising a fresh issue of equity shares worth up to ₹520 crore and an offer for sale (OFS) of up to 85 lakh equity shares with a face value of ₹5 per share. The company filed its DRHP with SEBI on November 7, 2024.
The price band and official dates of subscription and listing will be announced by the company later, but the shares are supposed to be listed on the BSE and the NSE platforms. The book-running lead manager of this issue is Pantomath Capital Advisors Private Ltd., while the registrar to the issue is Link Intime India Private Ltd.
Company Background
Paramesu Biotech Ltd. was incorporated on September 13, 2011, by undertaking maize grinding operations and then moved to expand its operations in the maize-based specialty products market. Over time, the company has expanded from starch production to the production of liquid glucose and maltodextrin powder, which are complex starch derivatives.
The company is headquartered in the West Godavari district of Andhra Pradesh. It has enhanced its processing capabilities by focusing on "wet milling," which enables the production of multiple valuable products from a single maize grain.
Operations & Product Range
Paramesu Biotech Ltd. deals in the processing of maize products, particularly maize starch and its derivatives. The company uses multi-stage refining technology for ingredient extraction. Its products include Native Maize Starch, Liquid Glucose, Maltodextrin Powder, and maize gluten and germ, which are used in the Confectionery, Bakery, Paper, and Animal Feed industries.
Facilities & Capacity
The company operates a processing facility at Devarapalli, Andhra Pradesh, located in the maize belt, with a grinding capacity of 800 TPD. The IPO proceeds aim to fund a new maize processing facility in Madhya Pradesh with a capacity of 1,200 TPD.
Brands & Market Presence
Paramesu Biotech Ltd. has established itself in the B2B sector, supplying industrial-scale customers domestically and internationally. Its export markets include Southeast Asia and the Middle East. The company’s reputation is reinforced by ISO and FSSC certifications, which are essential for business with food and pharmaceutical companies.
Revenue Streams & Business Model
The company generates revenue primarily from the sale of maize starch and its derivatives to industrial customers through high-volume B2B sales. Revenue streams include primary products such as starch and glucose, co-products like gluten and germ for animal feed, and exports. Strategic procurement and efficient processing help manage raw maize price volatility.
Management & Shareholding
Paramesu Biotech Ltd. is promoted by Unimark Business Solutions Private Ltd., Speedfast Tracom Ltd., Ananda Swaroop Adavani, Mani Swetha Tetali, and Himabindu Tetali. Promoters have played a key role in technical and strategic leadership. Pre-IPO, promoters held a significant portion of equity, which will dilute with new public investors.
Board & Key Management
The board and key management are led by MD Ananda Swaroop Adavani, supported by independent directors and the CS, Amulya Dasari, and whole-time director, Mani Swetha Tetali, to ensure governance and smooth transition to a public entity.
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A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Paramesu Biotech IPO GMP
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Paramesu Biotech IPO Details
| Detail | Description |
|---|---|
| IPO Date | - |
| Listing Date | - |
| Face Value | ₹5 per share |
| Issue Price Band | - |
| Lot Size | - |
| Sale Type | Fresh Capital & OFS |
| Total Issue Size | [.] shares (agg. up to ₹600 Cr) |
| Reserved for Market Maker | - |
| Fresh Issue(Ex Market Maker) | [.] shares (agg. up to ₹520 Cr) |
| Offer for Sale | [.] shares of ₹5 (agg. up to ₹80 Cr) |
| Net Offered to Public | - |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | - |
| Share Holding Post Issue | - |
Paramesu Biotech IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | - |
| IPO Close Date | - |
| Tentative Allotment | - |
| Initiation of Refunds | - |
| Credit of Shares to Demat | - |
| Tentative Listing Date | - |
| Cut-off time for UPI mandate confirmation | - |
Paramesu Biotech IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | - | - | - |
| Individual investors (Retail) (Max) | - | - | - |
| S-HNI (Min) | - | - | - |
| S-HNI (Max) | - | - | - |
| B-HNI (Min) | - | - | - |
Paramesu Biotech IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| Promoter Holding Pre Issue | 92.19% |
| Promoter Holding Post Issue | - |
Competitive Strength:
- • Management of the entire maize-derivative value chain in-house, thereby allowing for quality control and scalability of production based on market needs.
- • The current facility and proposed new facility are in proximity to key maize-growing regions, thereby allowing for optimization of procurement costs.
- • It serves more than a single industry, such as food processing, textiles and pharmaceuticals.
- • An experienced management team with domain expertise in the maize milling industry, which has been critical in managing the raw material cycles and scaling up the business.
Paramesu Biotech IPO Financial Information
| Period Ended | Assets | Total Income | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing | ||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 30 Sep 2024 | 479.44 | 409.39 | 26.85 | 200.10 | - | 216.18 | ||||||||||||||||||||||||||||||||||
| 31 Mar 2024 | 439.68 | 629.29 | 40.34 | 173.12 | - | 205.88 | ||||||||||||||||||||||||||||||||||
| 31 Mar 2023 | 319.17 | 625.34 | 32.52 | 132.96 | - | 140.56 | ||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 23.30% |
| ROCE | 18.13% |
| Debt/Equity | - |
| RoNW | 23.30% |
| PAT Margin | 6.41% |
| EBITDA Margin | - |
| Price to Book Value | - |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 1.54 | |
| P/E (x) |
IPO Objectives
The company intends to utilize the proceeds of the Paramesu Biotech IPO for the following strategic purposes:
- • Funding the capital expenditure for the new 1,200 TPD maize processing plant in Madhya Pradesh
- • Repayment of debt (in part or in full)
- • General corporate purposes
Conclusion
The Paramesu Biotech IPO provides investors an opportunity to participate in a growing agricultural processing company. The company is a leading supplier in maize processing, serving the food production, biofuel, and related industries. IPO proceeds will support ongoing projects and expansion to meet increasing industry demand.
IPO DRHP Status
| # | Description | Date | File |
|---|---|---|---|
| 1 | Filed with SEBI/Exchange | 07-11-2024 | View DRHP |
| 2 | SEBI/Exchange approval received | 28-02-2025 | - |
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Read More IPO ReviewsFrequently Asked Questions (FAQs)
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What is the total issue size of the Paramesu Biotech IPO?
The offer consists of a fresh issue of shares worth up to ₹520 crore and an offer for sale of up to 85 lakh equity shares by the promoter selling shareholder.
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Who is the promoter of Paramesu Biotech Ltd.?
The company is promoted by Unimark Business Solutions Private Ltd., Speedfast Tracom Ltd., Ananda Swaroop Adavani, Mani Swetha Tetali and Himabindu Tetali.
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Where will Paramesu Biotech Ltd. use the funds raised from the fresh issue?
The proceeds are intended to be used for the repayment of debt, funding the capital expenditure and general corporate purposes.
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What are the main products manufactured by Paramesu Biotech Ltd.?
Paramesu Biotech specializes in maize-based products, including Native Maize Starch, Liquid Glucose, Maltodextrin Powder and co-products like Maize Gluten and Germ.
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Which exchange will the Paramesu Biotech IPO list on?
The shares are supposed to be listed on the BSE and the NSE platforms.
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Where is Paramesu Biotech Ltd.'s current manufacturing unit located?
The existing facility is located in Devarapalli, West Godavari district andhra Pradesh.