IPO Details
Bidding Dates
17 Sep '24 - 19 Sep '24
Minimum Investment
₹118,000 / 1 Lot (2,000 Shares)
Price Range
₹57 - ₹59
Maximum Investment
₹118,000 / 1 Lot (2,000 Shares)
Retail Discount
To be announced
Issue Size
₹32.34 Cr
Investor category and sub category
Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |IPO Dates
Important dates with respect to IPO allotment and listing
Opening Date
Sep 17, 2024
Closing Date
Sep 19, 2024
Basis of Allotment
Sep 20, 2024
Initiation of Refunds
Sep 23, 2024
Listing Date
Sep 24, 2024
About Paramount Speciality Forgings IPO
Paramount Speciality Forgings Limited is launching an IPO with a total issue size of ₹32.34 crores. The IPO comprises a fresh issue of 48.02 lakh shares aggregating ₹28.33 crores and an offer for sale of 6.8 lakh shares aggregating ₹4.01 crores. The IPO opens for subscription on September 17, 2024, and closes on September 19, 2024. The allotment is expected to be finalised on September 20, 2024, with the shares set to list on the NSE SME on September 24, 2024.
The price band for the IPO is set between ₹57 to ₹59 per share, with a minimum application size of 2000 shares, requiring a retail investment of ₹118,000. For HNIs, the minimum investment is 2 lots, amounting to ₹236,000. Swaraj Shares and Securities Private Limited is the book-running lead manager for the IPO, while Purva Sharegistry India Pvt Ltd is the registrar. Shreni Shares is the market maker for this IPO.
Industry Outlook:
- The India metal forging market is expected to grow at a CAGR of 10.69%, reaching $8.80 billion by 2029, up from $4.32 billion in 2022.
- The Indian forging industry employs approximately 95,000 people, with 58% of production linked to the automotive sector, driving demand and growth.
Paramount Speciality Forgings IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Capital expenditure through the purchase of machinery and equipment required for expansion at the Khopoli Plant.
- General Corporate purposes.
About Paramount Speciality Forgings Limited
Incorporated in 1994, Paramount Speciality Forgings Limited is a leading manufacturer of steel forgings in India, catering to diverse industrial applications such as petrochemicals, chemicals, fertilisers, oil and gas, nuclear power, and heavy engineering.
The company operates two state-of-the-art manufacturing facilities located in Kamothe and Khalapur, Maharashtra. Paramount Speciality Forgings produces a wide range of forged products, including tube sheet blanks, forged rings, spacers, girth flanges, tyre rings, self-reinforced nozzles, long weld neck flanges, and valve bodies.
The company’s closed dye plant is certified under ISO 9001-2008, ISO 14001-2004, and BS OHSAS 18001-2007 and is accredited by prominent Oil and gas companies, statutory bodies, and inspection agencies. With a strong focus on quality, Paramount has automated its manufacturing processes to enhance productivity, reduce material costs, and improve product quality. The experienced management team, long-term customer relationships, and effective branding strategies further strengthen the company's market presence.
Peer Details
Paramount Speciality Forgings Limited operates in a unique business segment with no directly comparable listed companies in India.
How to Check the Allotment Status of the Paramount Speciality Forgings IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Paramount Speciality Forgings IPO
- Registered office: 3, 1, Guru Himmat Building, Dr. Mascarenhas Road Anjirwadi, Mazgaon, Mumbai - 400010, Maharashtra, India
- Phone: +91-22-2373 2656
- E-mail: compliance@paramountforge.org
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from Operation (in ₹ lakh) | 11,275.65 | 11,035.77 | 8,758.25 |
| Profit After Tax (PAT) (in ₹ lakh) | 725.36 | 275.84 | 313.44 |
| Current Ratio (x) | 1.20 | 1.07 | 1.22 |
| Net Worth (in ₹ lakh) | 2,291.49 | 1,566.14 | 1,970.49 |
| Total Borrowings (in ₹ lakh) | 2,492.82 | 2,027.65 | 1,176.93 |
| Return on Equity Ratio (x) | 0.38 | 0.16 | 0.17 |
| Return on Capital Employed (RoCE) Ratio (x) | 0.51 | 0.20 | 0.24 |
| Earnings Per Share (in ₹) | 4.87 | 2,758.40 | 3,134.37 |
Know before investing
Strengths
6-
Long-standing client relationships, with 35% revenue from repeat customers in FY 2022.
-
Strategic manufacturing facilities spanning 80,764 square feet across two locations.
-
High capacity utilisation at 39% of 12,000 MT installed capacity.
-
Experienced management team with over 15 years of industry tenure.
-
Robust quality management certified under ISO 9001, 14001, and OHSAS.
-
Significant revenue growth of 26%, reaching ₹11,035.77 lakhs in FY 2023.
Risks
6-
Lacks long-term agreements, risking customer order cancellations and reductions.
-
Dependent on 54% of raw materials from the top 10 suppliers.
-
High exposure to 77% revenue concentration within the Indian market.
-
Volatile raw material costs impact profitability and financial stability.
-
Manufacturing disruptions at two facilities could severely affect operations.
-
Foreign exchange fluctuations impact 23% of overseas-generated revenues.
Login to Angel One App / Website & click on IPO
Select desired IPO & tap on "Apply"
Enter UPI ID, set quantity/price & submit
Accept mandate on the UPI app to complete the process
Login to Angel One App / Website
Choose IPO section on Home Page
Click IPO Orders
Chose the IPO application you want to view the status for
Paramount Speciality Forgings IPO FAQs
Paramount Speciality Forgings IPO is a book built IPO. The IPO will be open from September 17, 2024, to September 19, 2024.
The Basis of Allotment will happen on Friday, September 20, 2024.
The IPO subscription window will open on September 17, 2024.
The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 2,000 shares.
The listing date for Paramount Speciality Forgings is Tuesday, September 24, 2024.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the ‘IPO’ section on the platform.
- Select IPO: Find and select the Paramount Speciality Forgings IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
- Multiple Submissions: Use different Demat accounts to make multiple applications.
- Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
- Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
To read Paramount Speciality Forgings’ financial statements, download the IPO’s RHP document.
