What You Must Know About Paramatrix Technologies IPO: Price Band ₹110 Per Share

Founded in 2004, Paramatrix Technologies Limited provides large and medium-sized businesses with technological solutions and software applications. The following major categories apply to the company's software applications and technology solutions (accelerators):

Applications Development and Maintenance (ADM), Solution Architecture and Design, Analytics, MIS, and Reporting; PERFORM (Accelerator for Employee Performance Management); PACE (Middleware Framework for Centralized Control); ITCS (Accelerator for managing Employees Share Trading Compliance); DROANA (Virtual Classroom Platform); EVENTJET (Event log monitoring & Management Solution); BULWARK (Cloud Security Posture Assessment); and PLAYMITY (SaaS-based Gamification Platform) are some examples of digital transformation services.

Managed services include cloud and data Support, Cyber Security, and Application Managed Services. The organisation's clientele includes the BFSI industry, retail, manufacturing, sports, pharmaceuticals, and logistics. As of March 31, 2024, the company had 182 workers.

The Objective of the Issue

• Capital Expenditure for Building Infrastructure: Paramatrix Technologies plans to allocate funds to develop and enhance its physical and technological infrastructure. This investment aims to improve operational efficiency, support business growth, and ensure the company has the necessary resources to scale its services and meet future demands.
• Investment in Suite of Accelerators: The company will invest in various accelerators, tools, and technologies to enhance its service offerings. This strategic move is designed to provide clients with more innovative and efficient solutions, strengthening Paramatrix Technologies' competitive edge in the market.
• Geographical Expansion in the Middle East and East Asia: Paramatrix Technologies intends to use part of the IPO proceeds to expand its presence in the Middle East and East Asia. This geographical diversification aims to tap into new markets, increase revenue streams, and establish a stronger global footprint.
• General Corporate Purposes: Funds allocated for general corporate purposes will support various operational needs, including working capital management, debt reduction, and strategic initiatives. This flexible use of funds ensures that the company remains agile and well-positioned to seize new opportunities.

Highlights of Paramatrix Technologies IPO

Paramatrix Technologies IPO is set to launch with a fixed price issue of ₹33.84 crores. The issue comprises a fresh issue of 27.59 lakh shares that will aggregate up to ₹ 30.35 crores and offer for sale of 3.18 lakh shares aggregating to ₹ 3.50 crores. Here are the key details of the IPO:

• The IPO opens for subscription on 27th August 2024 and closes on 30th August 2024.
• The allotment is expected to be finalised on 2nd September 2024.
• Refunds will be initiated on 3rd September 2024.
• Credit shares to Demat accounts are also expected on 3rd September 2024.
• The company will tentatively list on BSE SME on 4th September 2024.
• The price is fixed at ₹110 per share.
• The lowest lot size for the IPO application is 1200 shares.
• Retail investors need to invest a minimum of ₹132,000.
• The minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (2,400 shares), amounting to ₹264,000.
• Inventure Merchant Banker Services Pvt Limited is the book-running lead manager for the IPO.
• Bigshare Services Pvt Limited serves as the registrar.
• Svcm Securities is the market maker.

Paramatrix Technologies IPO - Key Dates

Here is the timeline of the Paramatrix Technologies IPO:

Paramatrix Technologies IPO Issue Details/Capital History

The first public offering (IPO) of Paramatrix Technologies is priced at ₹ 33.84 crores. The issue is made up of an offer to sell 3.18 lakh shares, valued at ₹ 3.50 crores, and a new issuance of 27.59 lakh shares, valued at ₹ 30.35 crores.

The subscription period for Paramatrix Technologies' initial public offering (IPO) begins on 27th August 2024 and ends on 30th August 2024. On Monday, September 2, 2024, the allocation for the Paramatrix Technologies IPO is anticipated to be completed. The proposed listing date for the Paramatrix Technologies initial public offering (IPO) is Wednesday, September 4, 2024, on the NSE SME.
 

Paramatrix Technologies IPO Allocation & Minimum Investment Lot Size

The IPO shares are distributed as follows:

Investors can bid on a minimum of 1200 shares, and they can bid more than that. Below is a table that shows the lowest and maximum shares and the number of investments made by HNIs and retail investors.

SWOT Analysis: Paramatrix Technologies IPO

Strengths:

• Diverse Service Offerings: Paramatrix Technologies has a wide range of services and accelerators that cater to various industries, enhancing its market appeal and revenue potential.
• Strategic Expansion Plans: The company's focus on expanding into the Middle East and East Asia presents significant growth opportunities in new and emerging markets.
• Strong Infrastructure Investment: Continued investment in infrastructure ensures operational efficiency and the ability to scale, supporting long-term growth.

Weaknesses:

• High Capital Expenditure: Significant investment in infrastructure and expansion could strain financial resources and impact short-term profitability.
• Market Dependence: Heavy reliance on specific geographical regions or industries might expose the company to localised economic downturns or market fluctuations.
• Intense Competition: The technology and services sector is highly competitive, with many established players, which could challenge Paramatrix Technologies' market position.

Opportunities:

• Emerging Markets: Expansion into the Middle East and East Asia opens new revenue channels and reduces dependence on existing markets.
• Technological Advancements: Continued investment in accelerators and innovative solutions can attract new clients, enhance service delivery, and increase market share.
• Strategic Partnerships: Forming alliances with local players in new markets can accelerate growth and provide a competitive edge.

Threats:

• Economic Uncertainty: Global economic instability could impact business operations and service demand, particularly in newly targeted regions.
• Regulatory Challenges: Operating in multiple regions may involve complex regulatory requirements, which could increase compliance costs and operational risks.
• Technological Disruption: Rapid technological changes and innovations by competitors could threaten Paramatrix Technologies' market position and require constant adaptation.

Financial Highlights: Paramatrix Technologies Limited 

Below are the financial results of Paramatrix Technologies Limited till March 2024 and the fiscal years FY23 and FY22:

The financial highlights of Paramatrix Technologies IPO reveal a stable performance with some fluctuations over the past three years. As of 31st March 2024, the company's total assets stood at ₹3,354.2 crore, slightly down from ₹3,438.71 crore in March 2023 but higher than ₹3,062.57 crore in March 2022.

Revenue for the year ending March 2024 was ₹2,859.93 crore, a decrease from ₹3,332.44 crore in 2023. This indicates a slight dip in sales, but it remained above the 2022 figure of ₹2,824.66 crore.

Profit After Tax (PAT) also declined to ₹413.17 crore in 2024, compared to ₹707.56 crore in 2023 and ₹678.94 crore in 2022, reflecting a drop in profitability.

Despite these challenges, the company's net worth increased to ₹3,030.25 crore in 2024, up from ₹2,996.5 crore in 2023, supported by reserves and a surplus of ₹2,155.25 crore, although down from ₹2,961.55 crore in 2023.