Paramount Speciality Forgings Limited IPO, GMP, Details, Price, and Review IPO Details
| Detail | Description |
|---|---|
| IPO Date | September 17, 2024 to September 19, 2024 |
| Listing Date | [.] |
| Face Value | ₹ 10 per share |
| Price Band | ₹ 57 to ₹ 59 per share |
| Lot Size | 2,000 Shares |
| Total Issue Size | 54,82,000 shares (aggregating up to ₹ 32.34 Cr) |
| Fresh Issue | 48,02,000 shares (aggregating up to ₹ 28.33 Cr) |
| Offer for Sale | 6,80,000 shares of ₹10 (aggregating up to ₹ 4.01 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Shareholding pre issue | 1,48,80,000 |
| Shareholding post issue | 1,96,82,000 |
| Market Maker portion | 2,76,000 shares Shreni Shares |
About Paramount Speciality Forgings Limited IPO, GMP, Details, Price, and Review
Paramount Speciality Forgings Limited is a manufacturer of steel forgings in India offering a diverse range of forged products. They have developed the business and scale of operations since its founding in 1996 and have invested in a variety of machinery to boost and diversify their manufacturing capabilities.
They can now manufacture and provide forged components ranging in weight from 1 kg to 4 metric tons in rough or finish-machined condition. Their products are manufactured by National & International standards and are used in a wide range of industrial applications catering to the extensive requirements of Petrochemicals, Chemicals, Fertilizers, Oil & Gas, Nuclear Power and other heavy engineering sectors.
Paramount Speciality Forgings IPO Overview:
Issue Size: ₹32.34 crore
• Fresh Issue: ₹28.33 crore (48.02 lakh shares)
• Offer for Sale: ₹4.01 crore (6.8 lakh shares)
Subscription Dates: September 17, 2024, to September 19, 2024
Price Band: 57 to ₹59 per share
Minimum Lot Size: 2000 shares
Lead Manager:
• Swaraj Shares
• Securities Private Limited
Registrar: Purva Sharegistry India Pvt Ltd
Market Maker: Shreni Shares
Paramount Speciality Forgings Limited IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Objectives of Paramount Speciality Forgings IPO
-
The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objectives:
- 1. Capital expenditure through the purchase of machinery and equipment required for expansion at the Khopoli Plant.
- 2. General Corporate purposes.
Paramount Speciality Forgings IPO Review
The company is operating in a highly competitive and fragmented segment. It posted steady growth in its top and bottom lines for the reported periods, however, the sudden boost in margins for FY2 raises eyebrows and concern over its sustainability. Based on FY24 earnings, the issue relatively appears fully priced. Well-informed investors may park moderate funds for the long term.
Company & Financials
Incorporated in 1994, Paramount Speciality Forgings Limited is a manufacturer of steel forgings in India, offering a diverse range of forged products. The company's products are manufactured to meet national and international standards and are used in various industrial applications including petrochemicals, chemicals, fertilizers, oil and gas, nuclear power and heavy engineering sectors. The company has two manufacturing facilities one in Kamothe and the second one in Khalapur, Maharashtra. The company manufactures a range of forged products, which include Tube Sheet Blanks, Forged Rings, Spacers , Girth Flanges, Tyre Rings, Self-reinforced nozzles, Long weld neck flanges, Seat, Valve bodies, Bonnet etc. The Company's closed dye plant is certified under ISO 9001-2008, ISO 14001-2004, and BS OHSAS 18001-2007 and is accredited by reputed Oil & Gas companies, Statutory Bodies and Inspection Agencies.
Paramount Speciality Forgings Limited IPO, GMP, Details, Price, and Review Financial Information
Latest Revenue
11,363.62
₹ Crore
Profit After Tax
725.36
₹ Crore
Net Worth
2,291.49
₹ Crore
Total Borrowing
2,492.82
₹ Crore
| Period Ended | Assets | Revenue From Operations | Profit After Tax | Net Worth | Total Borrowing | ||||
|---|---|---|---|---|---|---|---|---|---|
| 31 Mar 2024 | 8,179.18 | 11,363.62 | 725.36 | 2,291.49 | 2,492.82 | ||||
| 31 Mar 2023 | 7,223.87 | 11,224.1 | 275.84 | 1,566.14 | 2,027.65 | ||||
| 31 Mar 2022 | 5,450.48 | 9,243.16 | 313.44 | 1,970.49 | 1,176.93 | ||||
| Amount in ₹ Crore | |||||||||
IPO Estimated Listing Return
Based on the IPO Price of ₹59 (highest price band), the latest uploaded Grey Market Premium (GMP) of ₹1728 and a lot size of 2000 shares.
Paramount Speciality Forgings Limited IPO, GMP, Details, Price, and Review GMP TREND (DAILY UPDATES)
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| 2024-09-29 | ₹59 | ₹17 (28.81%) | - |
Paramount Speciality Forgings Limited IPO, GMP, Details, Price, and Review Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 32% |
| ROCE | 40% |
| Debt/Equity | 1.09 |
| RoNW | 31.65% |
| PAT Margin (%) | 6.43 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 4.87 | 3.69 |
| P/E (x) | 12.1 | 16.01 |
Frequently Asked Questions
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Competitive Strengths
Experienced management team: The management team of the company has industry experience and is accountable for growing operations and financial performance.
Focus on Quality: The company is seeking to streamline processes, reduce waste, and improve product quality. To achieve this, we have: (i) Automated manufacturing processes to increase productivity and cut manpower costs. (ii) Designed machining lines to optimize processes and reduce manpower costs by combining multiple processes on a single machine. (iii) Reduced the input weights needed for forging products, resulting in reduced material costs.
Long Term Customer Relationship: The company provides clients with expert services, which enhances customer retention and encourages repeat business.
Effective branding and Digital Market activities: The company focuses on brand visibility through multiple marketing channels, including retail branding, web marketing, magazine advertising, outdoor advertising, and digital marketing.
Paramount Speciality Forgings Limited IPO, GMP, Details, Price, and Review IPO Timeline
| IPO Open Date | Tuesday, September 17, 2024 |
| IPO Close Date | Thursday, September 19, 2024 |
| Basis of Allotment | Friday, September 20, 2024 |
| Initiation of Refunds | Monday, September 23, 2024 |
| Credit of Shares to Demat | Monday, September 23, 2024 |
| Listing Date | Tuesday, September 24, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 19, 2024 |
IPO Lot Size
| Investors | No.of lots | Shares Offered | Max Bid Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹118,000 |
| Retail (Max) | 1 | 2000 | ₹118,000 |
| HNI (Min) | 2 | 4,000 | ₹236,000 |