Paramount Dye Tec Limited, based in Ludhiana, India, is a distinguished manufacturer of recycled synthetic yarn, Acrylic Fiber yarns, Hand knitting yarns, and Fancy yarns. The company employs cutting-edge technology to produce high-quality sustainable yarns and fibers. Since its inception, the company has specialized in producing 100% recycled synthetic fiber, offering an environmentally friendly solution to the global textile market. Managed by a team of seasoned professionals, Paramount Dye Tec has successfully established itself as a reliable and innovative player in the synthetic fiber industry.

Paramount Dye Tec IPO Overview

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 IPO subscription period opened on September 30, 2024, and closes on October 3, 2024. The allotment of shares is expected to be finalized on or around October 4, 2024, and the shares will be listed on the NSE SME exchange with a tentative listing date of October 8, 2024.

Share Price and Lot Size

The share price band for the Paramount Dye Tec IPO is set at ₹111 to ₹117 per 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 a minimum of 2 lots (2,400 shares), amounting to ₹2,80,800. The IPO is being managed by GRETEX CORPORATE SERVICES LIMITED, with Bigshare Services Private Limited acting as the registrar for the issue. Gretex Share Broking Limited is the sole Market Maker for Paramount Dye Tec.

Grey Market Premium (GMP) Insights

As of the latest reports, the Grey Market Premium (GMP) for Paramount Dye Tec Limited IPO is expected to be ₹0. This suggests that there is no significant trading activity in the grey market and minimal expectations for listing gains. Investors should keep in mind that grey market activity is often speculative and does not provide a reliable mechanism for price discovery before shares are officially listed on the exchange.

Live Subscription Status

As of 10:15 AM on October 3, 2024, the live subscription status for Paramount Dye Tec IPO shows that the IPO has been subscribed 2.98 times on the third day of its subscription period. This reflects moderate interest from investors. For real-time updates, investors can check the Paramount Dye Tec Limited IPO Live Subscription Status on the NSE.

Allotment Date and How to Check Allotment Status

The allotment date for the Paramount Dye Tec IPO is scheduled for October 4, 2024. To check the allotment status, follow these simple steps:

Navigate to the IPO allotment status page on the registrar's website.

Select Paramount Dye Tec Limited IPO from the dropdown list.

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

Submit the details to view your allotment status.

By following these steps, investors can quickly determine whether they have been allotted shares and proceed accordingly with their investment decisions.

Objectives of Paramount Dye Tec Limited IPO

The proceeds from the IPO will be utilized 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 registration expenses related to land purchased from the promoter.

General corporate purposes.

These objectives align with the company's expansion plans, particularly in enhancing its production capacity and improving its financial position through debt reduction.

Financial Performance Overview

Paramount Dye Tec Limited has demonstrated steady financial growth, with the following key figures for Fiscal Year 2024:

Revenue: ₹2,367.90 Lakhs

EBITDA: ₹514.43 Lakhs

Profit after Tax: ₹354.09 Lakhs

This consistent growth trajectory highlights the company's strong operational and financial performance. For the Paramount Dye Tec IPO, the company is issuing shares at a pre-issue EPS of ₹7.86 and a post-issue EPS of ₹5.10. The pre-issue P/E ratio is 14.88x, while the post-issue P/E ratio stands at 22.94x. Additionally, the company's Return on Capital Employed (ROCE) for FY24 is 16.53%, and the Return on Equity (ROE) is 11.68%.

Valuation Metrics and Industry Comparison

The valuation metrics suggest that the IPO is fairly priced, especially when compared to industry peers. However, the relatively higher post-issue P/E ratio may deter some investors seeking immediate value. While the financial performance is strong, the higher valuation multiples indicate that much of the potential growth is already factored into the IPO pricing.

Investment Recommendation

Despite the company's steady financial performance, the Grey Market Premium (GMP) indicates minimal potential for listing gains, with the IPO reflecting no premium in grey market trading. Given the higher post-issue P/E ratio and the neutral market sentiment, we recommend investors to avoid the Paramount Dye Tec Limited IPO for both listing gains and long-term investment purposes.

For more insights into the evolving financial landscape and updates on economic developments, explore our articles on Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.

In conclusion, Paramount Dye Tec Limited holds significant promise as a sustainable fiber manufacturer, but current market conditions and valuation metrics suggest caution for potential investors. It's crucial to evaluate long-term prospects and consider alternative investment opportunities before making a decision.