Paramount Speciality Forgings made an impressive stock market debut on the NSE SME platform, listing at ₹83 per share, representing a 40.67% premium over its issue price of ₹59 per share. This strong performance highlights investors' confidence in the company, which has been a significant player in India’s steel forgings industry since its establishment in 1996. Paramount Forge is known for its high-quality production, catering to industries such as Petrochemical, Oil & Gas, Nuclear, Power, and Heavy Engineering sectors.

The Paramount Forge IPO was a Book Built Issue, amounting to ₹32.34 crores. This includes a Fresh Issue of 48.02 lakh shares worth ₹28.33 crore and an Offer for Sale of 6.8 lakh shares totaling ₹4.01 crore. The IPO was open for subscription from September 17 to September 20, 2024, with the allotment date expected on or about September 23, 2024. The shares were subsequently listed on September 25, 2024, delivering on the expectations built by its Grey Market Premium (GMP).

The price band for Paramount Forge's IPO was set at ₹57 to ₹59 per equity share, with a minimum lot size of 2,000 shares. For retail investors, this meant a minimum investment of ₹118,000, while High-Net-Worth Individuals (HNIs) had to invest a minimum of ₹236,000. The IPO was led by Swaraj Shares and Securities Private Limited as the book-running lead manager, with Purva Sharegistry (India) Private Limited serving as the registrar.

Strong Grey Market Premium (GMP) and Subscription Demand

In the Grey Market, the IPO exhibited a premium ranging between ₹15 to ₹17, indicating positive sentiment among investors. Although GMP is an informal market, it often reflects listing expectations and in this case, predicted potential listing gains of 25% to 30%. However, it's essential to note that GMP is not an official metric and is driven purely by demand and supply dynamics in an unregulated market.

The IPO's live subscription status by 5:00 PM on September 20, 2024, showcased overwhelming demand, with the IPO subscribed 68.75 times. This robust subscription rate signals confidence from various investor segments, with anchor investors playing a significant role by infusing ₹9.20 crore into the issue. A total of 15.60 lakh equity shares were allocated to these investors at ₹59 per share.

For detailed subscription status, NSE provides real-time updates, and you can check the full list of Anchor Investors for Paramount Forge.

Financial Metrics and Allotment Details

Financially, Paramount Forge has demonstrated solid performance over the last few years. In Fiscal 2024, the company's revenue reached ₹11,363.62 lakhs, with an EBITDA of ₹1,411.52 lakhs and a Profit After Tax (PAT) of ₹725.36 lakhs. These results reflect consistent growth compared to Fiscal 2023 and Fiscal 2022, where revenue was ₹11,224.10 lakhs and ₹9,243.16 lakhs, respectively.

The Paramount Forge IPO allotment date is September 23, 2024. Investors can check their allotment status via the registrar’s website by entering their application number, PAN, or DP Client ID. Here's a step-by-step guide to check your allotment status:

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

Select Paramount Forge Limited IPO from the dropdown.

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

Submit the details to view your allotment status.

Objectives of Paramount Forge Limited IPO

The company aims to utilize the funds raised from the Fresh Issue for the following purposes:

₹2,381.28 lakhs for capital expenditure, including the purchase of machinery and equipment for the expansion of their Khalapur Plant.

General corporate purposes, ensuring sustainable growth and productivity.

Paramount Speciality Forgings IPO Review

Given its longstanding presence in the steel forgings sector and its highly qualified workforce, Paramount Forge Limited is positioned well in the market. The company’s IPO metrics, such as a pre-issue EPS of ₹4.87 and post-issue EPS of ₹3.68, suggest the stock is fairly priced. With a pre-issue P/E ratio of 12.11x and a post-issue P/E ratio of 16.03x, investors may find this IPO suitable for both listing gains and long-term investment.

The company's Return on Capital Employed (ROCE) for FY24 stands at 0.40%, while the Return on Equity (ROE) is 0.32%. These metrics show room for improvement, but they align with the company's current growth trajectory.

Conclusion and Final Recommendations

With a Grey Market Premium predicting healthy listing gains, and given Paramount Forge's strong financials and sector position, risk-tolerant investors may find this IPO appealing. However, always consider your individual financial circumstances before making investment decisions.

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