Paramount Speciality Forgings IPO: Key Dates, Price Band ₹57 to ₹59 Per Share

Incorporated in 1994, Paramount Speciality Forgings Limited manufactures steel forgings in India, offering a diverse range of forged products. The company's products are manufactured to meet national and international standards. They are used in various industrial applications, including petrochemicals, chemicals, fertilisers, oil and gas, nuclear power, and heavy engineering. The company has two manufacturing facilities, one in Kamothe and the second in Khalapur, Maharashtra. The Company's closed dye plant is certified under ISO 9001-2008, ISO 14001-2004, and BS OHSAS 18001-2007 and is accredited by reputed Oil & Gas companies, Statutory Bodies, and Inspection Agencies.

The Objectives of the Issue

Paramount Speciality Forgings Limited aims to use the net proceeds from the issue for:

• Capital expenditure for purchasing machinery and equipment for expansion at the Khopoli Plant;
• General corporate purposes.

Highlights of Paramount Speciality Forgings IPO

Paramount Speciality Forgings IPO is launching with a book-built issue of ₹32.34 crores, including both a fresh issue and an offer for sale. Key details are:

• The IPO opens for subscription on 17th September 2024 and closes on 20th September 2024.
• The allotment is expected to be finalised on 23rd September 2024.
• Refunds will be initiated on 24th September 2024.
• Credit of shares to Demat accounts is also expected on 24th September 2024.
• The company will tentatively list on NSE SME on 25th September 2024.
• The price band is set at ₹57 to ₹59 per share.
• The fresh issue comprises 48.02 lakh shares aggregating to ₹28.33 crores.
• The offer for sale comprises 6.8 lakh shares aggregating to ₹4.01 crores.
• The minimum lot size for the application is 2000 shares.
• Retail investors need to invest a minimum of ₹118,000.
• The minimum investment for HNI is 2 lots (4,000 shares), amounting to ₹236,000.
• Swaraj shares and securities private limited is the book-running lead manager for the IPO.
• Purva Sharegistry India Pvt Ltd serves as the registrar.

Paramount Speciality Forgings IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 20th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Paramount Forge IPO Issue Details/Capital History

Paramount Forge IPO is scheduled from 17th September to 20th September 2024, with a price band of ₹57 to ₹59 per share and a face value of ₹10. The total issue size is 54,82,000 shares, raising up to ₹32.34 crores through a combination of fresh issue and offer for sale. The IPO will be listed on NSE SME. The pre-issue shareholding is 1,48,80,000 shares.

Paramount Speciality Forgings IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 2000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Paramount Forgings Ltd

Strengths:

• Experienced management team with industry expertise
• Focus on quality and process optimisation
• Long-term customer relationships
• Effective branding and digital marketing activities
• A diverse range of forged products meeting national and international standards

Weaknesses:

• Limited geographical presence with manufacturing facilities only in Maharashtra
• Dependence on specific industrial sectors for revenue

Opportunities:

• Expansion of manufacturing capabilities through the Khopoli Plant
• Potential for entering new industrial applications and markets
• Growing demand in the petrochemicals, oil and gas, and heavy engineering sectors

Threats:

• Fluctuations in raw material prices
• Intense competition in the steel forgings industry
• Economic downturns affecting key industrial sectors

Financial Highlights: Paramount Forgings Ltd

Below are the updated financial results for the Fiscal years FY24, FY23, and FY22:

Paramount Speciality Forgings Limited has demonstrated significant growth and some fluctuations in recent years. 
The company's assets have shown steady growth, increasing from ₹5,450.48 lakhs in FY22 to ₹8,179.18 lakhs in FY24, representing a growth of about 50% over two years. This indicates substantial expansion in the company's resource base.

The company has demonstrated consistent revenue growth. Revenue increased from ₹9,243.16 lakhs in FY22 to ₹11,363.62 lakhs in FY24, marking a growth of about 22.9% over two years. The year-over-year growth from FY23 to FY24 was 1.2%, indicating sustained performance.

The company's profitability has shown significant improvement, especially in FY24. Profit After Tax increased from ₹313.44 lakhs in FY22 to ₹725.36 lakhs in FY24, representing a substantial growth of 131.4% over two years. Notably, there was a significant jump in profitability from FY23 to FY24, with PAT increasing by 163% in a single year.

Net Worth has fluctuated over the years, decreasing from ₹1,970.49 lakhs in FY22 to ₹1,566.14 lakhs in FY23, but then increasing to ₹2,291.49 lakhs in FY24. The overall growth from FY22 to FY24 is about 16.3%, indicating an improvement in the company's financial strength.

This metric has seen a decrease over the three-year period, from ₹1,969.49 lakhs in FY22 to ₹803.49 lakhs in FY24. This reduction might be due to various factors such as dividend payouts or adjustments in the company's capital structure.

Borrowings have increased from ₹1,176.93 lakhs in FY22 to ₹2,492.82 lakhs in FY24, which represents an increase of about 111.8% over two years. This significant increase in borrowings, coupled with growing assets and revenue, suggests that the company is investing heavily in expansion or operational improvements.