Paramatrix Technologies Limited is set to make its mark in the financial landscape with an upcoming IPO that promises both listing gains and long-term investment potential. Established with a mission to leverage technology for the greater good, Paramatrix has carved a niche in the digital world by delivering innovative solutions across various sectors and geographies.

IPO Details and Key Dates

The Paramatrix IPO is a Fixed Price Issue, amounting to ₹30.34 crores. It includes a Fresh Issue of 27.58 lakh shares worth ₹30.34 crores and an Offer for Sale (OFS) of 3.18 lakh shares totaling ₹3.49 crores. The subscription period is open from August 27, 2024, to August 30, 2024. The allotment is expected to be finalized by September 02, 2024 (Monday), with the shares likely to be listed on the NSE SME by September 03, 2024 (Tuesday).

Pricing and Investment Requirements

The IPO is priced at ₹110 per share, with a minimum lot size of 1,200 shares. Retail investors must invest a minimum of ₹132,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹264,000 (2 lots). The IPO is managed by Inventure Merchant Banker Services Private Limited, with Bigshare Services Private Limited serving as the registrar. SVCM Securities Private Limited will act as the Market Maker for this IPO.

Grey Market Premium (GMP) and Allotment Status

The Grey Market Premium (GMP) for the Paramatrix Technologies Limited IPO is projected to be in the range of ₹40 to ₹45. While GMP is a popular indicator of market sentiment, it is essential to remember that it does not provide a definitive price discovery before the shares are listed on the exchange.

Allotment Status: Investors can check their allotment status by visiting the official website of the registrar after the allotment date, September 02, 2024. The process is straightforward: navigate to the IPO allotment status page, select Paramatrix Technologies Limited IPO from the dropdown list, enter your application number, PAN, or DP Client ID, and submit the details to view your allotment status.

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Objectives and Financial Overview

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

₹939.72 Lakhs for capital expenditure to build infrastructure.

₹652.80 Lakhs to invest in their suite of accelerators for enhanced service offerings.

₹614.91 Lakhs for geographical expansion into the Middle East and East Asia.

₹717.25 Lakhs for general corporate purposes.

Financially, Paramatrix has shown a steady performance. Revenue increased from ₹2,824.66 Lakhs in FY22 to ₹3,332.44 Lakhs in FY23. However, FY24 saw a slight dip to ₹2,859.93 Lakhs. EBITDA remained stable at ₹964.36 Lakhs in FY22 and ₹973.64 Lakhs in FY23, dropping to ₹565.03 Lakhs in FY24. The PAT also remained steady, from ₹678.94 Lakhs in FY22 to ₹707.56 Lakhs in FY23, with a slight decrease to ₹413.17 Lakhs in FY24.

Valuation and Investment Recommendation

The IPO is priced at a pre-issue EPS of ₹4.72 and a post-issue EPS of ₹3.59. The pre-issue P/E ratio stands at 23.30x, while the post-issue P/E ratio is 30.64x, against an industry P/E ratio of 38.80x. The ROCE for FY24 is 17.29%, and the ROE is 13.63%. These metrics suggest that the IPO is fairly priced, making it a potentially lucrative opportunity for investors.

With an expected GMP indicating potential listing gains of 35% - 40%, Paramatrix Technologies Limited IPO is an attractive option for both listing gains and long-term investment purposes.

Also Read: Vdeal System Limited IPO Day 1: Check price band, GMP, and other details

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