The Paramount Forge Limited IPO is set to be a Book Built Issue amounting to ₹32.34 crores, with a Fresh Issue of 48.02 lakh shares worth ₹28.33 crores and an Offer for Sale of 6.8 lakh shares, totaling ₹4.01 crores. The IPO will be open for subscription from September 17, 2024, to September 20, 2024.

Investors can purchase shares within the price band of ₹57 to ₹59 per equity share, with a minimum lot size of 2,000 shares. Retail investors must invest at least ₹118,000, while HNIs will need to invest a minimum of ₹236,000 for 4,000 shares.

The allotment date for Paramount Forge IPO is expected to be finalized on September 23, 2024, and the shares will be listed on the NSE SME platform with a tentative listing date of September 25, 2024.

Financial Overview

Established in 1996, Paramount Forge Limited is a leading manufacturer of steel forgings in India. With its state-of-the-art facilities and a highly qualified workforce, the company provides high-quality products that cater to the needs of industries such as Petrochemical, Oil & Gas, Nuclear, Power, and Heavy Engineering sectors.

The company has experienced steady financial growth:

Revenue in Fiscal 2024 was ₹11,363.62 lakhs, compared to ₹11,224.10 lakhs in FY 2023 and ₹9,243.16 lakhs in FY 2022.

EBITDA for FY 2024 reached ₹1,411.52 lakhs, compared to ₹762.821 lakhs in FY 2023 and ₹817.89 lakhs in FY 2022.

Profit after Tax (PAT) for FY 2024 amounted to ₹725.36 lakhs, up from ₹275.84 lakhs in FY 2023 and ₹313.44 lakhs in FY 2022.

For the IPO, Paramount Forge is issuing shares at a pre-issue EPS of ₹4.87 and a post-issue EPS of ₹3.68. The pre-issue P/E ratio is 12.11x, and the post-issue P/E ratio stands at 16.03x. The company's Return on Capital Employed (ROCE) for FY24 is 0.40%, and Return on Equity (ROE) is 0.32%, suggesting a fairly priced IPO.

Grey Market Premium (GMP) & Subscription Status

As of today, the Grey Market Premium (GMP) for Paramount Forge Limited IPO is projected to be between ₹15 to ₹17, implying potential listing gains of 25% to 30%. While the GMP provides an indication of market sentiment, it’s important for investors to note that GMP figures are speculative and do not reflect actual price discovery on the stock exchange.

As of 11:23 PM on September 19, 2024, the live subscription status shows that the IPO has been subscribed 4.63 times, signaling strong investor interest.

IPO Objectives

The proceeds from the Paramount Forge Limited IPO will be allocated as follows:

₹2,381.28 lakhs will be used for capital expenditure, specifically for purchasing machinery and equipment needed for the expansion of their Khalapur Plant.

The remaining funds will be used for general corporate purposes.

Promoters and Company Growth

The company is led by a group of promoters, including Mr. Aliasgar Roshan Hararwala, Mr. Aliasgar Abdulla Bhagat, and others, who have contributed significantly to Paramount Forge's growth. With their leadership, Paramount Forge has grown into one of India’s leading steel forging manufacturers.

How to Check IPO Allotment Status

Investors who have subscribed to the Paramount Forge IPO can check their allotment status online:

Go to the IPO allotment status page.

Select Paramount Forge Limited IPO from the dropdown list.

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

Submit the details to check your allotment status.

Conclusion and Expert Opinion

The Paramount Forge Limited IPO shows promising financial performance and positive GMP indications. With a subscription status of 4.63 times and the possibility of listing gains of 25% to 30%, it may attract risk-tolerant investors seeking short-term gains or long-term investments in a growing sector. However, potential investors are advised to assess their risk tolerance and consult professionals before making any investment decisions.

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