When exploring opportunities in the IPO market, understanding key details such as issue dates, prices, and lot sizes is crucial. For those engaged in IPO investments, having a clear grasp of these fundamentals can significantly impact decisions.
Paramount Dye Tec Limited's IPO brings attention to important aspects. Whether you are actively following Paramount Dye Tec or monitoring other upcoming IPOs, being well-informed helps you make better choices. This blog will get into the essential details surrounding the issue, making it easier to navigate your investment path effectively.
Paramount Dye Tec IPO is a book-built issue valued at ₹28.43 crores, consisting entirely of a fresh issue of 24.3 lakh shares. The subscription for the Paramount Dye Tec IPO begins on September 30 2024, and concludes on October 3 2024. The allotment of shares is expected to be finalised by October 4 2024.
The Paramount Dye Tec Limited IPO SME is NSE, with a tentative listing date scheduled for October 8 2024. Investors looking at IPO investments should keep an eye on this opportunity and upcoming IPOs in the market.
The price band for the Paramount Dye Tec IPO is set between ₹111 and ₹117 per share. Retail investors will need to apply for a minimum lot size of 1,200 shares, which amounts to an investment of ₹140,400. For HNI investors, the minimum lot size is 2 lots (2,400 shares), requiring an investment of ₹280,800.
Gretex Corporate Services Limited is managing the IPO as the lead book runner, while Bigshare Services Pvt Ltd serves as the registrar. Additionally, Gretex Share Broking is the market maker for this IPO investment.
| Paramount Dye Tec Limited IPO open date | September 30, 2024 (Monday) |
| Paramount Dye Tec Limited IPO close date | October 3, 2024 (Thursday) |
| Allotment allocation | October 4, 2024 (Friday) |
| Refund inititaion | October 7, 2024 (Monday) |
| Crediting shares to Demat | October 7, 2024 (Monday) |
| Date of listing | October 8, 2024 (Tuesday) |
| Maximum time for UPI mandate confirmation | October 3, 2024, by 5 PM |
Founded in January 2014, Paramount Dye Tec Limited specialises in producing yarns by recycling synthetic waste fibres, focusing on the B2B segment of the textile industry. Their product range includes acrylic, polyester, nylon, wool, hand-knitting, and acrylic blend yarns, known for durability and consistent quality.
Operating from two manufacturing facilities in Village Mangarh and Village Koom Khurd, Punjab, the company is ISO 9001:2015 and GMP certified for its high standards in quality management.
With these strategic advantages, Paramount Dye Tec stands out in the industry.
Paramount Dye Tec IPO has a market capitalisation of ₹81.23 crore. The company saw a significant jump in profit after tax (PAT), rising from ₹0.16 crore in FY22 to ₹3.54 crore in FY24, indicating robust financial growth. Despite this, the Paramount Dye Tec Limited IPO GMP remains at ₹0, reflecting neutral market sentiment ahead of the listing.
| Period ended | 31st Mar 2024 | 31st Jan 2024 |
| Total assets | 5,549.65 | 3,490.07 |
| Revenue | 2,367.9 | 2,955.91 |
| Profit after tax | 354.09 | 278.65 |
| Net worth | 3,032.06 | 1 |
| Reserves and surplus | 3,029.81 | |
| Borrowing | 1,627.37 | 2,247.76 |
*Amount in ₹ Lakhs
Paramount Dye Tec Limited stands out in the textile industry with its innovative and cost-effective approach. These strengths showcase the company's strategic growth and competitive edge.
The company effectively uses recycled synthetic waste as raw material, turning what would otherwise be discarded into high-quality fibre and yarn.
By converting waste into usable materials, Paramount Dye Tec enjoys a cost advantage over its competitors, resulting in better profit margins.
The company provides tailor-made yarn solutions to meet the specific needs of its customers, adding value through flexibility.
Paramount Dye Tec's expansion in spinning capacity ensures higher profitability with minimal expense increases, contributing to its growing profit after tax (PAT).
Paramount Dye Tec Limited faces several challenges that could impact its operations and financial stability. Understanding these weaknesses is crucial for potential investors considering IPO investments.
The company primarily operates in the yarn sector, with revenue from manufacturing fibre and yarn making up approximately 70.24% in FY24. A decline in sales within this product category could adversely affect the company's finances.
Smooth operations are contingent upon the company's manufacturing facility. Any disruptions or incidents at this location could hinder production capabilities and negatively impact the business.
The company generates all its revenue from Punjab. Any adverse developments in the local business environment or failure to expand operations could significantly affect its financial performance.
A significant portion of the company's revenue comes from its top ten customers, contributing Rs 18.38 crore, Rs 34.58 crore, and Rs 18.90 crore in FY24, FY23, and FY22, respectively. The loss of one or more of these key customers could severely impact financial stability.
The company, along with its promoters and directors, is involved in several ongoing legal issues. Any negative outcomes in these cases could be detrimental to its operations.
As of June 30, 2024, the company's outstanding loans (both secured and unsecured) total Rs 14.36 crore. Any difficulties in repaying or servicing these loans may adversely affect its financial standing.
The Paramount Dye Tec Limited IPO presents a compelling investment opportunity within the textile sector, particularly for those interested in eco-friendly practices. With a focus on recycling synthetic waste to produce high-quality yarns, the company demonstrates a commitment to sustainability.
However, its reliance on a single segment for 70.24% of revenue raises concerns about market stability. Additionally, potential risks include geographical limitations and customer concentration.
Overall, while the IPO showcases promising growth potential and a solid business model, investors should weigh these strengths against their vulnerabilities to make informed decisions regarding their IPO investments.
Investing in an IPO can be a strategic move for those looking to diversify their portfolios and tap into growing industries. However, it's important to consider both the potential and risks associated with any investment. Understanding market dynamics, business models, and financial trends can give investors an edge.
For those seeking a reliable platform to manage their investments with ease, exploring Ventura's online stock trading and investment services can be a valuable step. It offers tools and support that make navigating your investment journey more seamless. Explore your options with Ventura today and take control of your financial future.
The Paramount Dye Tec IPO is set to open on September 30, 2024, for Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII), and Retail Investors. The subscription period will close on October 3, 2024.
The price band for the Paramount Dye Tec IPO has been set between ₹111 and ₹117 per share.
The Paramount Dye Tec IPO is scheduled to be listed on the NSE on October 8, 2024.
For android only