Paramount Forge Limited, established in 1996, has emerged as one of India’s leading manufacturers of steel forgings. With a focus on modern facilities and a highly qualified workforce, the company caters to the extensive needs of the Petrochemical, Oil & Gas, Nuclear, Power, and other Heavy Engineering sectors.

The upcoming IPO is a Book Built Issue amounting to ₹32.34 Crores, consisting of 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 share price band is set between ₹57 and ₹59, with a minimum lot size of 2,000 shares. Retail investors will need to invest a minimum of ₹118,000, while High-Net-Worth Individuals (HNIs) are required to invest ₹236,000 for 2 lots (4,000 shares).

The subscription period for the Paramount Forge IPO opens on September 17, 2024, and closes on September 20, 2024. Allotment is expected to be finalized by September 23, 2024, with shares listing on the NSE SME on September 25, 2024.

SWARAJ SHARES AND SECURITIES PRIVATE LIMITED serves as the book-running lead manager, while PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED is the registrar for the issue. Both Swaraj Shares and Securities Private Limited and Shreni Shares Limited act as market makers for this IPO.

The Grey Market Premium (GMP) for the Paramount Forge IPO is expected to be in the range of ₹15 to ₹17 based on the company's financial performance. It's important to note that the GMP is merely for informational purposes, as it reflects demand and supply in an unregulated market, which is not recommended for trading decisions.

As of September 19, 2024, at 11:23 PM, the IPO has been subscribed 4.63 times on its final day of the subscription period. Investors can track their allotment status from the registrar's website beginning September 23, 2024. The steps to check allotment status are simple:

Navigate to the IPO allotment status page.

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.

The proceeds from the Fresh Issue will be utilized for:

₹2,381.28 Lakhs for capital expenditure on machinery and equipment for expansion at the Khalapur Plant.

General corporate purposes.

Financial Overview: Paramount Forge has shown steady growth, with revenues of ₹11,363.62 Lakhs in FY24, up from ₹11,224.10 Lakhs in FY23 and ₹9,243.16 Lakhs in FY22. EBITDA figures for these years were ₹1,411.52 Lakhs, ₹762.82 Lakhs, and ₹817.89 Lakhs respectively, while Profit After Tax was ₹725.36 Lakhs, ₹275.84 Lakhs, and ₹313.44 Lakhs.

For the IPO, the pre-issue EPS is ₹4.87 and the post-issue EPS is projected at ₹3.68. The pre-issue P/E ratio is 12.11x, and the post-issue P/E ratio is 16.03x, suggesting the IPO is reasonably priced. The ROCE for FY24 stands at 0.40%, with ROE at 0.32%.

Given the company's solid financial performance and the anticipated Grey Market Premium indicating potential listing gains of 25% - 30%, we recommend risk-tolerant investors consider applying for the Paramount Forge Limited IPO for potential listing gains or long-term investment opportunities.

For more information about Praveg Limited and its offerings, please visit their official website.

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