Paramount Speciality Forgings is scheduled to hit the market on September 17, 2024 and close on September 19, 2024. Paramount Speciality Forgings plans to raise around ₹32.34 Cr through an IPO with a sale of up to 5,482,000 equity shares of ₹10 each. The Retail offered 35.00%, QIB Shares Offered 50%, HNI Shares Offered 15%.
Paramount Speciality Forgings Limited, established in 1994, is a manufacturer of steel forgings in India. The company produces a wide range of forged products to meet both national and international standards. Their products are used in various industries, such as petrochemicals, chemicals, fertilizers, oil and gas, nuclear power, and heavy engineering. Paramount has two manufacturing plants located in Kamothe and Khalapur, Maharashtra, where they create items like Tube Sheet Blanks, Forged Rings, Girth Flanges, and Valve bodies.
The company prides itself on its experienced management team, which plays a key role in improving operations and financial success. Paramount focuses on quality by automating manufacturing processes and optimizing machining lines to cut costs and improve product quality. They also emphasize building long-term relationships with customers through expert services, which helps retain clients. Additionally, the company invests in branding and digital marketing to increase visibility across various channels, including web marketing and advertisements.
Paramount Speciality Forgings IPO Details
Paramount Speciality Forgings IPO opens on September 17, 2024, and closes on September 19, 2024. The Listing date for Paramount Speciality Forgings IPO is on September 24, 2024. The price band for IPO is ₹57 to ₹59 per share and lot size of 2000 Shares.
| IPO Date | September 17, 2024 to September 19, 2024 |
| Listing Date | September 24, 2024 |
| Price | ₹57 to ₹59 per share |
| Lot Size | 2000 Shares |
| Issue Size | ₹32.34 Cr |
| Face Value | ₹10 per share |
Paramount Speciality Forgings IPO Tentative Timetable
Paramount Speciality Forgings opening date is September 17, 2024 and close date is September 19, 2024. The IPO allotment date is September 20, 2024. Therefund initiation of IPO is on September 23, 2024. The credit of shares in demat account is on September 23, 2024. The listing date is on September 24, 2024.
| Event | Date |
|---|---|
| IPO Opening | September 17, 2024 |
| IPO Closing | September 19, 2024 |
| IPO Allotment Date | September 20, 2024 |
| Refund Initiation | September 23, 2024 |
| Shares Credit to Demat | September 23, 2024 |
| Lisiting Date | September 24, 2024 |
Paramount Speciality Forgings IPO Lot Size
Lot Size of this IPO is 2000 shares. A retail-individual investor can apply for up to 1 lots (2000 shares or ₹118,000).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 2000 | ₹118,000 |
| Retail(Maximum) | 1 | 2000 | ₹118,000 |
| HNI (Minimum) | 2 | 4000 | ₹236,000 |
Paramount Speciality Forgings IPO Promoter Holding
| Pre Issue Share Holding | 100.00% |
| Post Issue Share Holding | 72.15% |
Paramount Speciality Forgings IPO Review
The company is launching its first IPO through a combo book building process. They are offering 5,482,000 equity shares with a face value of Rs. 10 each. The aim is to raise Rs. 32.34 crores at the highest price in the price range.
On the financial performance front, for the last three fiscals, the company has posted a total revenue/net profit of Rs. 92.43 cr. / Rs. 3.13 cr. (FY22), Rs. 112.24 cr. / Rs. 2.76 cr. (FY23), and Rs. 113.64 cr. / Rs. 7.25 cr. (FY24). Thus while it posted growth in its top line, it marked inconsistency in bottom lines with a big jump for FY24, that surprises all.
For the last three fiscals, it has reported an average EPS of Rs. 2888.59 (on pre-bonus basis) and an average RoNW of 47.81%. The issue is priced at a P/BV of 4.46 based on its NAV of Rs. 13.24 as of March 31, 2024, and at a P/BV of 1.93 based on its post-IPO NAV of Rs. 30.52 per share (at the upper cap).
If we attribute FY24 super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 15.99. Based on FY23 earnings, the P/E stands at 42.14. Thus the issue is relatively fully priced discounting all near term positives.
The company reported PAT margins of 3.58% (FY22), 2.50% (FY23), 6.43% (FY24), and RoCE margins of 0.24%, 0.30%, 0.40% for the referred periods, respectively.
This is the 8th mandate from Swaraj Shares in the last three financial years, including the current one. Out of the last 7 listings, 1 started at a discount, 1 started at the same price, and the others opened with premiums between 15.38% and 90% on the listing day.
The company is working in a very competitive and divided market. It has shown consistent growth in both its sales and profits during the reported periods. However, the sudden increase in profit margins for FY2 is surprising and raises questions about whether it can be maintained. Based on the earnings for FY24, it seems that the stock is already priced fairly. Smart investors might consider putting some money into it for the long term.
Paramount Speciality Forgings IPO Subscription Status (Bidding Details)
Table not foundParamount Speciality Forgings IPO Broker Recommendations
- Capital Market: To be updated soon
- Anand Rathi: To be updated soon
- SMC Global: To be updated soon
- Arihant Capital: To be updated soon
Paramount Speciality Forgings IPO FAQs
What is Paramount Speciality Forgings IPO?
Paramount Speciality Forgings is issuing 5,482,000 equity shares with a face value of ₹10 each, totaling up to ₹32.34 Cr. The shares are being offered at a price of ₹57 to ₹59 each, with a minimum order quantity of 2000 shares.
Purva Sharegistry India Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Paramount Speciality Forgings IPO will open?
Paramount Speciality Forgings will open on September 17, 2024 for QIB, NII, and Retail Investors.
When Paramount Speciality Forgings IPO will end?
Paramount Speciality Forgings will end on September 19, 2024.
What is Paramount Speciality Forgings IPO Size?
Paramount Speciality Forgings IPO size is ₹32.34 Cr.
What is Paramount Speciality Forgings IPO Price Band?
Paramount Speciality Forgings price band is ₹57 to ₹59 per share.
What is Paramount Speciality Forgings IPO Allotment Date?
Paramount Speciality Forgings allotment date is September 20, 2024.
What is Paramount Speciality Forgings IPO Listing Date?
Paramount Speciality Forgings listing date is September 24, 2024. The IPO is to be listed on BSE and NSE.
How to Apply Paramount Speciality Forgings IPO through Zerodha?
To apply for the IPO “Paramount Speciality Forgings” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Paramount Speciality Forgings IPO through Upstox?
To apply for the IPO “Paramount Speciality Forgings” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Paramount Speciality Forgings IPO Allotment Status?
For Paramount Speciality Forgings IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Paramount Speciality Forgings IPO GMP?
You can check out here: Paramount Speciality Forgings IPO GMP. Check all IPO GMP here.