Paramatrix Technologies Limited, a prominent player in the technological solutions sector, is gearing up for its Initial Public Offering (IPO), set to raise ₹30.34 crores through a Fixed Price Issue. This IPO includes a Fresh Issue of 27.58 lakh shares worth ₹30.34 crores and an Offer for Sale of 3.18 lakh shares totaling ₹3.49 crores. The subscription period for this IPO opens on August 27, 2024, and closes on August 30, 2024. The allotment of shares is anticipated to be finalized around September 2, 2024, with a tentative listing date on the NSE SME set for September 3, 2024.

Share Pricing and Investment Details

The IPO share price is set at ₹110 per equity share. Investors are required to purchase a minimum of 1,200 shares, translating to an investment of ₹132,000 for retail investors. High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots (2,400 shares), amounting to ₹264,000.

Inventure Merchant Banker Services Private Limited is the book-running lead manager for the IPO, while Bigshare Services Private Limited will serve as the registrar. SVCM Securities Private Limited is appointed as the Market Maker.

Grey Market Premium (GMP) and Allotment Status

The Grey Market Premium (GMP) for Paramatrix Technologies Limited is currently expected to be in the range of ₹40 to ₹45. However, it's essential to note that GMP is based on informal trading and does not reflect the actual market value, as real price discovery occurs post-listing.

To check the Paramatrix IPO allotment status, investors can visit the registrar's website from the allotment date. The process involves selecting Paramatrix Technologies Limited from the IPO list, entering the application number, PAN, or DP Client ID, and submitting the details to view the allotment status.

Objectives of the IPO and Utilization of Funds

The proceeds from the Fresh Issue will be allocated as follows:

Capital Expenditure: ₹939.72 lakhs for building infrastructure.

Investment in Accelerators: ₹652.80 lakhs to enhance service offerings.

Geographical Expansion: ₹614.91 lakhs for expanding into the Middle East and East Asia.

General Corporate Purposes: ₹717.25 lakhs for various corporate needs.

Financial Performance and IPO Review

Paramatrix Technologies has demonstrated a stable financial performance over recent years. The company’s revenue grew from ₹2,824.66 lakhs in FY22 to ₹3,332.44 lakhs in FY23, with a current revenue of ₹2,859.93 lakhs in FY24. EBITDA remained stable at ₹964.36 lakhs in FY22 and ₹973.64 lakhs in FY23, with a current EBITDA of ₹565.03 lakhs in FY24. PAT showed a steady trend from ₹678.94 lakhs in FY22 to ₹707.56 lakhs in FY23 and a current PAT of ₹413.17 lakhs in FY24.

For the Paramatrix IPO, the pre-issue EPS is ₹4.72, and the post-issue EPS is ₹3.59. The pre-issue P/E ratio stands at 23.30x, while the post-issue P/E ratio is 30.64x, compared to the industry P/E ratio of 38.80x. The company's ROCE for FY24 is 17.29%, and ROE is 13.63%, indicating that the IPO is fairly priced.

The anticipated Grey Market Premium suggests potential listing gains of 35% - 40%. Considering the company's financial stability and valuation, it is advisable for investors to apply for the Paramatrix Technologies Limited IPO for potential listing gains or long-term investment.

Conclusion

The Paramatrix Technologies IPO presents a promising opportunity for investors with its solid financial performance, strategic use of funds, and a well-defined investment plan. With a fair pricing strategy and a positive outlook in the Grey Market, the IPO is poised to attract significant investor interest.

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