Paramount Dye Tec Limited, a prominent manufacturer of recycled synthetic yarn located in Ludhiana, India, is gaining attention in the investment community with its upcoming IPO. The company specializes in 100% recycled synthetic fiber and the yarns derived from it, catering to the growing demand for sustainable textiles. Managed by a team of experienced professionals, Paramount Dye Tec stands out for its advanced technology and commitment to quality.

The Paramount Dye Tec IPO consists entirely of a Fresh Issue amounting to ₹28.43 Crores, with 24.30 lakh shares available for subscription. The subscription period opened on September 30, 2024, and will close on October 03, 2024. Following the closure, the allotment is anticipated to be finalized on October 04, 2024, with shares expected to be listed on the NSE SME by October 08, 2024.

The share price band for the Paramount Dye Tec IPO is set between ₹111 to ₹117 per equity share, making it accessible to a wide range of investors. Retail investors are required to invest a minimum of ₹1,40,400 for one lot, which consists of 1,200 shares. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,80,800, covering 2 lots (1,400 shares).

The book-running lead manager for this IPO is GRETEX CORPORATE SERVICES LIMITED, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar. Notably, Gretex Share Broking Limited is the sole market maker for this issue.

As of October 01, 2024, the Grey Market Premium (GMP) for the Paramount Dye Tec IPO is anticipated to be ₹0. It's important to note that the GMP reflects an unregulated market and should not be solely relied upon for investment decisions. The premium largely depends on the demand and supply dynamics of the shares prior to their official listing.

Live Subscription Status

As of 11:15 PM on October 01, 2024, the live subscription status shows that the Paramount Dye Tec IPO has been subscribed 0.69 times on its second day of the subscription period. Interested investors can check the real-time status on the NSE website.

Allotment Date and Procedure

The allotment date for the Paramount Dye Tec IPO is set for October 04, 2024. Investors can easily check their allotment status by following these simple 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 view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated towards various objectives:

₹2,402.42 Lakhs will be utilized for establishing a new manufacturing unit.

₹451.35 Lakhs will go towards repaying or prepaying certain debt facilities availed by the company.

₹114.42 Lakhs will be allocated for expenses related to the registration of land purchased from a promoter.

Remaining funds will be directed towards general corporate purposes.

Financial Performance Overview

In Fiscal 2024, Paramount Dye Tec reported a revenue of ₹2,367.90 Lakhs, an EBITDA of ₹514.43 Lakhs, and a Profit After Tax of ₹354.09 Lakhs. These figures reflect a stable growth trajectory for the company. The pre-issue EPS stands at ₹7.86, while the post-issue EPS is ₹5.10. The pre-issue P/E ratio is 14.88x, with a post-issue P/E ratio of 22.94x. Furthermore, the Return on Capital Employed (ROCE) for FY24 is 16.53%, and the Return on Equity (ROE) is 11.68%, indicating a solid investment case.

Investment Recommendation

Despite the company's promising financials, the Grey Market Premium indicates a potential listing gain of 0%. Investors are advised to avoid the Paramount Dye Tec Limited IPO for both short-term gains and long-term investment, given the current valuation metrics and market conditions.

In conclusion, investors are encouraged to do thorough research before participating in the Paramount Dye Tec Limited IPO. 

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