Paramatrix Technologies Limited is at the forefront of delivering cutting-edge technological solutions to empower businesses and individuals globally. Established with a mission to leverage technology for positive change, Paramatrix has been active in creating innovative solutions across various sectors and geographies.

IPO Details

The Paramatrix Technologies IPO is a Fixed Price Issue totaling ₹30.34 crores. It 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 the IPO runs from August 27, 2024, to August 30, 2024. The allotment is anticipated to be finalized on September 2, 2024, with shares expected to be listed on the NSE SME around September 3, 2024.

The share price for the IPO is set at ₹110 per share, with a minimum lot size of 1,200 shares. Retail investors need to invest a minimum of ₹132,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹264,000 (2 lots or 2,400 shares). Inventure Merchant Banker Services Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar, and SVCM Securities Private Limited will act as the Market Maker for the IPO.

Financial Performance

Paramatrix Technologies has exhibited a steady financial performance over recent years. Revenue increased from ₹2,824.66 lakhs in FY22 to ₹3,332.44 lakhs in FY23 and is currently at ₹2,859.93 lakhs in FY24. EBITDA has been relatively stable, from ₹964.36 lakhs in FY22 to ₹973.64 lakhs in FY23, and now stands at ₹565.03 lakhs in FY24. PAT has shown similar stability, moving from ₹678.94 lakhs in FY22 to ₹707.56 lakhs in FY23, and currently at ₹413.17 lakhs in FY24. This indicates a relatively steady financial trajectory.

Valuation Insights

For the Paramatrix IPO, the company is offering shares with a pre-issue EPS of ₹4.72 and a post-issue EPS of ₹3.59. The pre-issue P/E ratio is 23.30x, and the post-issue P/E ratio is 30.64x, compared to the industry P/E ratio of 38.80x. The company’s Return on Capital Employed (ROCE) for FY24 is 17.29%, and the Return on Equity (ROE) is 13.63%. These metrics suggest that the IPO is fairly priced.

Grey Market Premium

The Grey Market Premium (GMP) for the Paramatrix IPO is anticipated to range between ₹40 to ₹45, indicating potential listing gains of 35% - 40%. While GMP can provide insights into investor sentiment, it is important to remember that it is not a definitive measure of future performance. The premium reflects the demand and supply dynamics in the unregulated grey market and is provided for informational purposes.

Allotment and Subscription Status

The IPO allotment date for Paramatrix Technologies is September 2, 2024. Investors can check their allotment status on the registrar’s website from this date. To check allotment status:

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Visit the IPO allotment status page.

Select Paramatrix Technologies Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for the following purposes:

₹939.72 lakhs for capital expenditure to build infrastructure.

₹652.80 lakhs for investment in accelerators to enhance service offerings.

₹614.91 lakhs for geographical expansion in the Middle East and East Asia.

₹717.25 lakhs for general corporate purposes.

Conclusion

The Paramatrix Technologies IPO offers a promising investment opportunity with its stable financial performance and favorable Grey Market Premium. Given the company’s robust financial metrics and potential for growth, we recommend applying to the Paramatrix Technologies IPO for both listing gains and long-term investment prospects. Investors should consider the company's steady financials and strategic growth plans when making their investment decisions.

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