Paramount Forge Limited, a leading Indian manufacturer of steel forgings, is set to launch its Initial Public Offering (IPO) on September 17, 2024. Established in 1996, Paramount Forge has built a reputation for quality and productivity in the Petrochemical, Oil & Gas, Nuclear, Power, and other Heavy Engineering sectors. The IPO aims to raise ₹32.34 Crores through 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.

Company Overview

With modern facilities and a highly qualified workforce, Paramount Forge offers a wide range of products, ensuring adherence to the highest quality standards. The company is poised for significant growth, driven by its extensive market presence and focus on technological advancements.

IPO Details:

IPO Size: ₹32.34 Crores

Shares Offered: 48.02 lakh shares (Fresh Issue) and 6.8 lakh shares (Offer for Sale)

Price Band: ₹57 to ₹59 per equity share

Lot Size: 2,000 shares

Minimum Investment for Retail Investors: ₹118,000

Minimum Investment for HNIs: 2 lots (4,000 shares), totaling ₹236,000

SWARAJ SHARES AND SECURITIES PRIVATE LIMITED is the book-running lead manager, PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED is the registrar, and Swaraj Shares and Securities Private Limited along with Shreni Shares Limited are the Market Makers for the IPO.

Grey Market Premium (GMP) and Subscription

The Grey Market Premium (GMP) for the Paramount Forge IPO is currently expected to be between ₹33 and ₹35, indicating a potential listing gain of 55-60%. This premium is speculative and does not guarantee the actual listing price.

As of September 17, 2024, the IPO's live subscription status shows a 0.96 times subscription on its first day. Investors can track real-time updates on the NSE website.

Anchor Investors Report

Paramount Forge has raised ₹9.20 Crores from Anchor Investors at ₹59 per share. A total of 15,60,000 equity shares have been allocated to these investors, reflecting strong institutional interest in the IPO.

IPO Allotment and Listing

The allotment of shares is scheduled for September 20, 2024. Investors can check their allotment status by:

Visiting the IPO allotment status page on the registrar’s website.

Selecting Paramount Forge Limited IPO from the dropdown list.

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

Submitting the details to view your allotment status.

Objectives of the IPO

The proceeds from the IPO will be utilized for:

Capital Expenditure: ₹2,381.28 Lakhs will be used to purchase machinery and equipment for expansion at the Khalapur plant.

General Corporate Purposes: Remaining funds will support general corporate activities and operational requirements.

IPO Review and Recommendations

Paramount Forge's IPO is priced at ₹57-59 per share, with anticipated listing gains of 55-60%. The company’s solid financial performance, coupled with its expansion plans, suggests that the IPO is attractively priced. Given these factors, the IPO represents a potentially lucrative opportunity for investors seeking both short-term gains and long-term investment prospects.

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