Paramount Speciality Forgings IPO: 

A Comprehensive Overview

The Paramount Speciality Forgings IPO is creating buzz in the Indian financial market, offering investors a chance to participate in one of the country's leading steel forging companies. With a mix of a fresh issue of shares and an offer for sale, the IPO promises to bring significant opportunities for retail and institutional investors alike. In this blog, we break down the details of this much-anticipated IPO and provide insights into the company’s financials, competitive strengths, and why it stands out in the market.

Key Details of the Paramount Speciality Forgings IPO
The Paramount Speciality Forgings IPO is structured as a book-built issue, aiming to raise ₹32.34 crores. This includes a fresh issue of 48.02 lakh shares, raising ₹28.33 crores, and an offer for sale of 6.8 lakh shares, worth ₹4.01 crores.

IPO Bidding Period:
The IPO opened for subscription on September 17, 2024, and will close on September 20, 2024. Post-bidding, the allotment is expected to be finalized on September 23, 2024, with a tentative listing date of September 25, 2024 on the NSE SME.

IPO Details:

• IPO Date: September 17, 2024 – September 20, 2024
• Listing Date: September 25, 2024 (Tentative)
• Price Band: ₹57 to ₹59 per share
• Face Value: ₹10 per share
• Lot Size: 2000 shares
• Minimum Investment for Retail Investors: ₹118,000 (1 lot)
• Minimum Investment for HNIs: ₹236,000 (2 lots)
• Total Issue Size: 54.82 lakh shares (₹32.34 crores)
• Fresh Issue: 48.02 lakh shares (₹28.33 crores)
• Offer for Sale (OFS): 6.8 lakh shares (₹4.01 crores)
• Listing Exchange: NSE SME
• Market Maker Portion: 2.76 lakh shares

Paramount Speciality Forgings IPO Timeline

The IPO follows a strict timeline to ensure a smooth process for investors:

• IPO Open Date: September 17, 2024
• IPO Close Date: September 20, 2024
• Basis of Allotment: September 23, 2024
• Initiation of Refunds: September 24, 2024
• Credit of Shares to Demat Accounts: September 24, 2024
• Listing Date: September 25, 2024

Important Reminder:
Ensure that your UPI mandate is confirmed by 5 PM on September 20, 2024, to guarantee your application is processed successfully.

About Paramount Speciality Forgings Limited Paramount Speciality Forgings Limited, established in 1994, is one of India's premier steel forging companies. The company specializes in producing a wide range of high-quality forged components, catering to critical industries such as petrochemicals, oil and gas, nuclear power, fertilizers, and heavy engineering. Their vast product portfolio includes Tube Sheet Blanks, Forged Rings, Spacers, Girth Flanges, Tyre Rings, Valve Bodies, and Bonnets, among other specialized products.
Manufacturing Facilities and Certifications The company operates from two cutting-edge manufacturing facilities in Kamothe and Khalapur, Maharashtra. Paramount’s closed die plant is certified under ISO 9001:2008, ISO 14001:2004, and BS OHSAS 18001:2007. It is also accredited by leading oil and gas companies, statutory bodies, and inspection agencies, demonstrating its commitment to quality and safety standards.
Competitive Strengths of Paramount Speciality Forgings

• Experienced Management Team

• Commitment to Quality

• Automation: Automated manufacturing processes increase productivity and lower labor costs.
• Process Optimization: Their advanced machining lines combine multiple processes, improving efficiency and reducing costs.
• Material Efficiency: Optimized input materials for forging help in cost reduction while maintaining product integrity.

• Strong Customer Relationships

• Strategic Branding and Marketing

For the financial year ending March 31, 2024, Paramount Speciality Forgings Limited has shown a remarkable improvement in its financial metrics, making it an attractive option for investors.
Financial Performance:

• Revenue: Grew by 1% to ₹11,363.62 lakhs (compared to ₹11,224.10 lakhs in FY 2023).
• Profit After Tax (PAT): Rose significantly by 163% to ₹725.36 lakhs, up from ₹275.84 lakhs in FY 2023.
• Assets: Increased to ₹8,179.18 lakhs, up from ₹7,223.87 lakhs the previous year.
• Net Worth: Improved to ₹2,291.49 lakhs, up from ₹1,566.14 lakhs in FY 2023.
• Reserves and Surplus: Decreased slightly to ₹803.49 lakhs (from ₹1,565.14 lakhs in FY 2023).
• Total Borrowing: Increased to ₹2,492.82 lakhs, compared to ₹2,027.65 lakhs in FY 2023.

Financial Summary for the Last Three Years: Metrics 31 Mar 2024 31 Mar 2023 31 Mar 2022 Assets ₹8,179.18 lakhs ₹7,223.87 lakhs ₹5,450.48 lakhs Revenue ₹11,363.62 lakhs ₹11,224.10 lakhs ₹9,243.16 lakhs Profit After Tax (PAT) ₹725.36 lakhs ₹275.84 lakhs ₹313.44 lakhs Net Worth ₹2,291.49 lakhs ₹1,566.14 lakhs ₹1,970.49 lakhs Reserves and Surplus ₹803.49 lakhs ₹1,565.14 lakhs ₹1,969.49 lakhs Total Borrowing ₹2,492.82 lakhs ₹2,027.65 lakhs ₹1,176.93 lakhs

• Strong Financials: The company has demonstrated substantial profit growth, improved asset base, and solid revenue streams.
• Experienced Management: Led by an experienced team with a focus on strategic growth.
• Growing Market Demand: With a diverse range of high-quality forged products, Paramount is well-positioned to benefit from the increasing demand in key industrial sectors.
• Competitive Positioning: The company's emphasis on automation, process optimization, and material efficiency sets it apart in the industry.

Is Paramount Speciality Forgings IPO a Good Investment? With a solid financial track record, a diverse product portfolio, and an experienced management team, Paramount Speciality Forgings IPO presents a unique opportunity for investors looking to tap into India’s growing industrial sector. The company’s strategic focus on efficiency, automation, and quality ensures it is well-prepared to capitalize on future growth opportunities. As always, investors should carefully consider the risk factors before making any investment decisions.

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