Paramount Speciality Forgings Limited is coming with an IPO consisting of a fresh issue of 48,02,000 shares worth INR 28.33 crores and an offer to sell 6,80,000 shares worth INR 4.01 crores. The company aims to fund machinery and equipment purchases for expansion and general corporate purposes.
Paramount Speciality Forgings IPO – Important Dates
| Paramount Speciality Forgings IPO Date | September 17, 2024 to September 19, 2024 |
| Paramount Speciality Forgings IPO Listing Date | September 24, 2024 |
| Paramount Speciality Forgings IPO Price | INR 57-59 per share |
| Paramount Speciality Forgings IPO Lot Size | 2000 Shares |
| Paramount Speciality Forgings IPO Total Issue Size | INR 32.34 crores |
| Paramount Speciality Forgings IPO Basis of Allotment | September 20, 2024 |
| Paramount Speciality Forgings IPO Initiation of Refunds | September 23, 2024 |
| Paramount Speciality Forgings IPO Credit of Shares to Demat | September 23, 2024 |
| Paramount Speciality Forgings IPO Issue Type | Book Built Issue IPO |
| Paramount Speciality Forgings IPO Listing At | NSE, SME |
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Paramount Speciality Forgings Limited IPO – Company Profile
Paramount Speciality Forgings Limited manufactures a diverse range of steel forgings from 1kg to 4 metric tons. Since 1996, they’ve expanded operations with advanced machinery, serving sectors like petrochemicals, oil and gas, and nuclear power.
With over three decades of experience, they’ve built strong relationships with customers in petrochemicals, chemicals, fertilizers, oil and gas, nuclear, power, and heavy engineering industries, benefiting from their extensive manufacturing expertise.
They’ve implemented an Integrated Management System to enhance environmental and OH&S performance and continual improvement. Operating facilities in Kamothe and Khalapur, Maharashtra, use advanced equipment, including pneumatic air hammers and a drop forge hammer for forgings up to 120 kg.
Paramount Speciality Forgings Ltd IPO Fundamental Analysis
Paramount Speciality Forgings Limited’s financial analysis reveals a mixed performance. Revenue increased, profitability rose, and EPS improved, reflecting growth. Despite rising liabilities and a reduced debt-equity ratio, RoNW shows strong returns, though liquidity has weakened.
- Revenue Trend: The revenue increased from ₹8,758.25 lakh in March 2022 to ₹11,035.77 lakh in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 11,275.65 lakh.
- Equity and Liabilities: Liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹313.44 lakh in March 2022 to ₹725.36 lakh by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹3,134.37 in March 2022 to ₹4.87 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 17.28% to 31.65%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
Paramount Speciality Forgings IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakh) | 8,758.25 | 11,035.77 | 11,275.65 |
| Equity (₹ in lakh) | 1,970.49 | 1,566.14 | 2,291.49 |
| Expenses (₹ in lakh) | 8,859.91 | 10,866.01 | 10,357.69 |
| Profit and Loss After Tax (₹ in lakh) | 313.44 | 275.84 | 725.36 |
| RoNW (%) | 17.28 | 15.60 | 31.65 |
| NAV per Equity Share (₹) | 15.40 | 10.53 | 13.24 |
| Diluted EPS only (₹) | 3,134.37 | 2,758.40 | 4.87 |
| Total Assets (in lakhs) | 5,450.48 | 7,223.87 | 8,179.18 |
| Total Liabilities (in lakhs) | 3,479.99 | 5,657.74 | 5,887.68 |
| Debt Equity Ratio | 0.60 | 1.29 | 1.09 |
| Current Ratio (in time) | 1.22 | 1.07 | 1.20 |
Paramount Speciality Forgings Limited IPO Peer Comparison
No listed companies in India engage in a business similar to Paramount Speciality Forgings Limited. Accordingly, it is impossible to provide an industry comparison for their company.
Paramount Speciality Forgings Ltd IPO Objective
The main objective of Paramount Speciality Forgings Limited is to fund capital expenditure through the purchase of machinery and equipment required for expansion at their Khalapur Plant.
- Capital expenditure through purchasing machinery and equipment required for expansion at their Khalapur Plant: The company intends to utilize INR 23.81 crores for equipment and civil work to expand capacity at the Khalapur Plant. Quotations have been received, but no orders or agreements have been finalized.
- General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including strategic initiatives and acquisitions, enhancing marketing and distribution, brand building, and addressing any other emerging needs.
Paramount Speciality Forgings IPO Risks And Challenges
Paramount Speciality Forgings Limited’s risk includes reliance on short-term orders without long-term agreements, exposure to market fluctuations, and dependence on a few suppliers. These factors could impact revenue, production, and financial stability.
- They rely on short-term purchase orders without long-term supply agreements, which, if amended or canceled, may impact revenue and production. Customer demands, changes in market conditions, and fluctuations in orders can also affect their business and financial stability.
- End-user industries like petrochemicals and oil & gas influence their revenue. Government policies, economic conditions, and industry disruptions can impact demand. Currently, no past occurrences have significantly affected their financial condition.
- They obtain a substantial portion of their raw materials from a limited number of suppliers without long-term contracts. If key suppliers face issues or reduce their dealings, it could adversely affect their business, results, and financial condition.
Paramount Speciality Forgings Ltd IPO – Industry & Market Potential
The Indian forging industry has shifted from labour-intensive to capital-intensive, employing about 95,000 people. It now widely meets domestic demand and exports, driven by auto sector needs and global outsourcing trends. It focuses on productivity and technology upgrades.
Forging is crucial for linking metal suppliers with end-user industries and offers high strength, reliability, and recyclability. The U.S. forging sector impacts 20% of GDP, while India’s market is set to grow from $4.32 billion in 2022 to $8.80 billion by 2029.
The Indian metal forging market is consolidated, with critical players enhancing performance by upgrading forging capabilities. This approach ensures high-quality services and strengthens their position within the industry.
Paramount Speciality Forgings Limited IPO – Type of Offer
Paramount Speciality Forgings Limited plans a fresh issue of shares, seeking INR 28.33 crores to fund machinery and equipment purchases for expansion and general corporate purposes. Additionally, the company proposes an offer for sale, intending to sell 6,80,000 existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 28.33 crores. The company intends to utilize the proceeds from the fresh issue to fund machinery and equipment purchases for expansion and general corporate purposes.
- Offer for sale: Paramount Speciality Forgings Limited is offering to sell 6,80,000 existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Mr. Aliasgar Roshan Hararwala | 1,16,000 |
| Mr. Aliasgar Abdulla Bhagat | 78,000 |
| Mr. Mohammed Salim Hararwala | 66,000 |
| Mr. Abdulla Aliasgar Bhagat | 1,16,000 |
| Mr. Hoozefa Saleem Hararwala | 64,000 |
| Mr. Abbasali Salim Hararwala | 64,000 |
| Mr. Zahid Mohamadi Hararwala | 98,000 |
| Mr. Roshan Alihusain Hararwala | 78,000 |
Paramount Speciality Forgings IPO Offer Size
The offer size of Paramount Speciality Forgings Limited is INR 32.34 crores, consisting of a fresh issue of 48,02,000 shares worth INR 28.33 crores and an offer to sell 6,80,000 shares worth INR 4.01 crores. The company seeks funds for machinery and equipment purchases for expansion and general corporate purposes.
Paramount Speciality Forgings Limited IPO Allotment Structure
Paramount Speciality Forgings 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. 276,000 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. 276,000 shares, are reserved for market makers.
Read more about Paramount Speciality Forgings Limited IPO Allotment Status
How to apply for Paramount Speciality Forgings IPO?
To apply for the Paramount Speciality Forgings 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.
- Check for IPO Details: Once your account is active, you can check for the Paramount Speciality Forgings Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Paramount Speciality Forgings 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 Speciality Forgings IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- 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.
- 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.
- Select the Paramount Speciality Forgings 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 Speciality Forgings Limited IPO.
- 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 Speciality Forgings Limited IPO:
● Registrar’s Website: Visit the website of Purva Sharegistry (India) Private Limited, the registrar of the Paramount Speciality Forgings 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 Speciality Forgings Ltd IPO Offer Registrar
The registrar for the Paramount Speciality Forgings Limited IPO is Purva Sharegistry (India) Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED
9, Shiv Shakti Industrial Estate,
J. R. Boricha Marg,
Lower Parel (East)
Mumbai 400011, Maharashtra, India.
E-mail: [email protected]
Website: www.purvashare.com
Paramount Speciality Forgings IPO – FAQs
1. What is the allotment date of the Paramount Speciality Forgings IPO?
The allotment date of the Paramount Speciality Forgings Limited IPO is September 20, 2024.
2. What is the price band of the Paramount Speciality Forgings IPO?
The price band of the issue is INR 57-59 per share.
3. What is the size of the Paramount Speciality Forgings IPO?
The offer size of Paramount Speciality Forgings Limited is INR 32.34 crores, consisting of a fresh issue of 48,02,000 shares worth INR 28.33 crores and an offer to sell 6,80,000 shares worth INR 4.01 crores. The company seeks funds for machinery and equipment purchases for expansion and general corporate purposes.
4. What is the listing date of the Paramount Speciality Forgings IPO?
The listing date of Paramount Speciality Forgings Limited’s IPO is September 24, 2024.
