Paramount Dye Tec Limited, headquartered in Ludhiana, India, is a renowned manufacturer of recycled synthetic yarn, Acrylic Fiber yarns, hand knitting yarn, and fancy yarn. The company is committed to sustainable practices and leverages advanced technology to produce high-quality products. Since its inception, Paramount Dye Tec has focused on the production of 100% recycled synthetic fiber and the yarns derived from it.

The Paramount Dye Tec IPO is a book-built issue amounting to ₹28.43 crores, consisting entirely of a fresh issue of 24.30 lakh shares. The subscription period opened on September 30, 2024, and will close on October 03, 2024. The allotment is expected to be finalized on October 04, 2024, with shares listed on the NSE SME by October 08, 2024.

The price band for the Paramount Dye Tec IPO is set at ₹111 to ₹117 per equity share, with a minimum lot size of 1,200 shares. Retail investors are required to invest a minimum of ₹1,40,400, while High-Net-Worth Individuals (HNIs) must invest in 2 lots (1,400 shares), totaling ₹2,80,800.

GRETEX CORPORATE SERVICES LIMITED serves as the book-running lead manager, while BIGSHARE SERVICES PRIVATE LIMITED acts as the registrar for the issue. Gretex Share Broking Limited is the sole market maker for Paramount Dye Tec.

As of 5:00 PM on October 03, 2024, the live subscription status for the Paramount Dye Tec IPO indicates a robust 46.63 times subscription on its third day. This high level of interest from investors highlights the company's potential in the market.

The Grey Market Premium (GMP) for Paramount Dye Tec is currently anticipated to be ₹0, suggesting that no significant trading is occurring based on GMP. It is essential for investors to understand that the Grey Market Premium reflects demand and supply in an unregulated market, which should not be the sole basis for making investment decisions.

Investors can check the IPO allotment status through the following steps:

Navigate to the IPO allotment status page.

Select Paramount Dye Tec Limited IPO from the dropdown list.

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

Submit the details to check your allotment status.

The proceeds from the Paramount Dye Tec IPO will be allocated for the following objectives:

₹2,402.42 Lakhs for setting up a new manufacturing unit.

₹451.35 Lakhs for the repayment or prepayment of certain debt facilities availed by the company.

₹114.42 Lakhs for expenses related to the registration of land purchased from the promoter.

Remaining funds will be used for general corporate purposes.

The company is led by Mr. Kunal Arora and Ms. Palki Arora, the promoters who provide strategic direction and operational oversight, ensuring that the company remains focused on sustainable growth and innovation.

Financially, Paramount Dye Tec has shown steady growth, with a revenue of ₹2,367.90 Lakhs for Fiscal 2024. The EBITDA for the same period was ₹514.43 Lakhs, and the Profit After Tax (PAT) reached ₹354.09 Lakhs, indicating positive financial performance.

For the Paramount Dye Tec IPO, the company is offering shares at a pre-issue EPS of ₹7.86 and a post-issue EPS of ₹5.10. The P/E ratios are 14.88x pre-issue and 22.94x post-issue, suggesting the IPO is fairly priced compared to the industry. The company's Return on Capital Employed (ROCE) for FY24 stands at 16.53%, and its Return on Equity (ROE) is 11.68%.

However, the Grey Market Premium (GMP) indicating potential listing gains of 0% raises concerns for investors. Considering the company's financial performance and the valuation of the IPO, it is advisable for investors to avoid the Paramount Dye Tec Limited IPO for both listing gains and long-term investment purposes.

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