Paramount Dye Limited is coming up with an IPO with a fresh issue of 24,30,000 shares worth INR 28.43 crores. The company aims to fund the setting up of a manufacturing facility, repayment of borrowings, land registration, and general corporate purposes.

Paramount Dye Tec IPO – Important Dates

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Paramount Dye Tec Limited IPO  – Company Profile

Paramount Dye Tec Limited, ‘PDTL’ is a Ludhiana, Punjab-based company, specializing in the manufacturing of yarns by recycling waste synthetic fiber (recycling synthetic waste), serving the B2B segment of the textile industry.

They offer a range of products including synthetic fiber and yarns which include acrylic yarn, polyester yarn, nylon yarn, wool yarn, hand-knitting yarn, and acrylic blend yarn with quality, finer impact, and lasting excellence. At PDTL, they utilize synthetic waste fibers as their primary raw material, transforming them into quality yarn. This process not only enhances industry sustainability but also boosts economic efficiency. The commitment to environmental responsibility and economic benefits is evident through their innovative approach.

Paramount Dye Tec Ltd IPO Fundamental Analysis 

Paramount Dye Tec’s revenue growth, increasing profitability, and rising equity position are positive indicators. The improved profit margins and controlled expenses signal operational strength. Additionally, the jump in total assets and equity base highlights robust financial health, with a stable NAV per share supporting shareholder value.

1. Revenue and Expenses:
   • The company’s revenue has shown consistent growth, from ₹2,363.32 lakhs in 2022 to ₹5,305.87 lakhs in 2024, indicating a strong upward trajectory.
   • Expenses have also increased, from ₹2,349.87 lakhs in 2022 to ₹4,422.16 lakhs in 2024, but at a slower pace than revenue, which suggests improved operational efficiency.
2. Profit and EPS:
   • Profit after tax has grown significantly from ₹15.94 lakhs in 2022 to ₹632.74 lakhs in 2024, highlighting a drastic improvement in profitability.
   • Diluted EPS for 2024 is ₹7.86, indicating positive earnings available to shareholders, though data for earlier years is unavailable.
3. Equity and NAV:
   • The company’s equity has increased from ₹258.78 lakhs in 2022 to ₹3,032.06 lakhs in 2024, reflecting a substantial boost in shareholder funds.
   • The NAV per share in 2024 stands at ₹67.31, suggesting strong asset backing for each share, though data for previous years is not available.
4. Assets and Liabilities:
   • Total assets grew from ₹1,458.40 lakhs in 2022 to ₹5,549.65 lakhs in 2024, showcasing robust growth in the company’s asset base.
   • Total liabilities have also increased, from ₹1,199.62 lakhs in 2022 to ₹2,517.59 lakhs in 2024, but the growth in equity and assets suggests a healthy balance sheet.

Paramount Dye Tec IPO Financial Analysis

Paramount Dye Tec Limited IPO Peer Comparison 

Since the performance data of the company is available only for 3 months, it cannot be compared to other listed peers in the industry.

Paramount Dye Tec Ltd IPO Objective

The main objective of Paramount Dye Tec’s IPO is to allocate INR 16 crores for a new manufacturing facility, INR 4.50 crore to repay borrowings, INR 1 crore for land registration expenses, and the remaining funds for general corporate purposes and operational needs.

1. Setting up manufacturing facility: As an anticipated plan of expansion and tapping the market of the textile industry and to expand the manufacturing facilities to cater to the increasing demand, the company intends to set up an additional manufacturing facility in Ludhiana, Punjab. For the said purpose, the company plans to utilise INR 16 crores from the net proceeds.

2. To repay borrowings: The company proposes to utilise an aggregate amount of INR 4.50 crores from the Net Proceeds towards full or partial repayment or prepayment of certain borrowing availed by the company from the bank. 

3. To meet the registration expense: The expenses towards registration of the sale deed for the transfer of land from Mr. Kunal Arora to the company. The company intends to deploy the Issue Proceeds to the extent of INR  1 crore towards such expenses.

4. General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.

Paramount Dye Tec IPO Risks And Challenges

Paramount Dye Tec operates in a highly regulated sector, facing environmental and safety regulations that could increase operational costs. With 70% of revenue reliant on fiber and yarn manufacturing and operations concentrated solely in Punjab, any adverse developments could significantly impact business performance and profitability.

1. The company operates in a heavily regulated sector and the operations are subject to environmental, health, and safety regulations that could expose them to liability, increasing the cost of operations.

2. The majority of the revenue (almost 70%) is dependent on a single business segment i.e. manufacturing of fiber and yarns. Any adverse impact on sales of a product would adversely affect the operations and profitability. 

3. The complete revenue for the period ended March 31, 2024, is from only one state. i.e. Punjab. Such geographical concentration of the business heightens the company’s exposure to adverse developments related to competition.

Paramount Dye Tec Ltd IPO – Industry & Market Potential

The Global Spinning Machinery Market is expected to grow at a CAGR of 4.6% over the forecast period of 2022-2027. A macro-level driving factor in the spinning machinery market is the rising contribution of the fashion industry to the overall GDP. Another factor driving the technical textiles industry across the globe such as automotive textiles and geotextiles, which demand high-end performance from industrial yarns.

A prominent issue facing the industry is that very few new players are involved in manufacturing yarn. New sales that account on a yearly basis are the result of the expansion of plant capacity or replacements of older machines. Accordingly, the buyers of spinning machinery have higher bargaining power. 

The India textile recycling market size reached US$ 318.8 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 418.2 Million by 2032, exhibiting a growth rate (CAGR) of 3% during 2024-2032.

Paramount Dye Tec Limited IPO – Type of Offer

Paramount Dye Limited is launching an IPO with a fresh issue of 24,30,000 shares worth INR 28.43 crores. The company plans to use the proceeds for setting up a manufacturing facility, repayment of borrowings, land registration, and general corporate purposes.

Paramount Dye Tec  IPO Offer Size

The offer size for Paramount Dye Limited’s IPO includes a fresh issue of 24,30,000 shares valued at INR 28.43 crores. The funds will be utilized for setting up a manufacturing facility, repayment of borrowings, land registration, and general corporate purposes.

Paramount Dye Tec  Limited IPO Allotment Structure

Paramount Dye Tec Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 1,22,400 shares are reserved for market makers. 

 ● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 1,22,400 shares, are reserved for market makers. 

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How to apply for the Paramount Dye Tec SME IPO?

To apply for the Paramount Dye Tec Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Paramount Dye Tec Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Paramount Dye Tec Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

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How do you check Paramount Dye Tec IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Paramount Dye Tec Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Paramount Dye Tec Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Paramount Dye Tec Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Paramount Dye Tec Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

 ● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

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Paramount Dye Tec Ltd IPO Offer Registrar

The registrar for the Paramount Dye Tec Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Bigshare Services Private Limited

S6-2, 6th Floor, Pinnacle Business Park, 

Andheri (East) Mumbai – 400093.

Telephone: +91 22 6263 8200;

Email: [email protected]

Website: www.bigshareonline.com

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 Paramount Dye Tec IPO  – FAQs