Paramount Speciality Forgings IPO Subscribed More Than 70 Times; Check Latest GMP

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The initial public offering of Paramount Speciality Forgings Ltd. opened for subscription on Tuesday and closed for bidding on September 20.

The SME issue was subscribed 2 times on Day 1, 3.66 times on Day 2 and 6.53 times on Day 3.

The IPO was subscribed 73.88 times on Friday

Qualified Institutions: 20.88 times

Non-Institutional Buyers: 220.24 times

Retail Investors: 41.35 times

The grey market premium of Paramount Speciality Forgings IPO is Rs 10 as of 7:55 p.m. on September 22, implying a 16.95% over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 69 per share.

GMP is not an official price quote for the stock and is based on speculation.

The steel forgings company aims to raise Rs 32.3 crore through this book-built issue.

The offer included a fresh issue of 48 lakh shares, aggregating Rs 28.3 crore, and an offer-for-sale component of 6.8 lakh shares, totalling Rs 4.01 crore. The price band was set between Rs 57 to 59 per share.

The allotment of Paramount Speciality Forgings shares is likely to be finalised on September 23. Refunds will be initiated to non-allottees on September 24, along with credit of shares into the demat account of successful bidders on the same day. PSFL is expected to list on the NSE SME platform, Emerge, on September 25.

Purva Sharegistry India Pvt. is the registrar for the IPO. The company has appointed Swaraj Shares and Securities Pvt. as the book-running lead manager of the IPO, whereas Shreni Shares Ltd. is the market maker for the issue.

Incorporated in 1994, PSFL manufactures forged components, weighing from 1 kg to 4 tonnes, offering them in rough or finish-machined condition. Its product portfolio includes tube sheet blanks, forged rings, spacers, girth flanges, tyre rings, self-reinforced nozzle, long weld neck flanges, seat, valve’s body and bonnet.

The clients of PSFL operate in sectors like petrochemicals, chemicals and fertilisers, oil and gas, nuclear, power and other heavy engineering industries. It owns and operates two manufacturing facilities, with one in Kamothe and one in Khalapur, Maharashtra.

PSFL plans to use the proceeds of its IPO to fund capital expenditure for the purchase of machinery and equipment. This will be required for expansion at the company’s Khalapur plant. Part of the proceeds will also be used for general corporate purposes.

PSFL reported a revenue of Rs 113.6 crore for the financial year ended March 31, 2024, an increase of 1.24% from Rs 112.2 crore in the previous fiscal.

The net profit more than doubled to Rs 7.25 crore during this period as compared to Rs 2.75 crore in fiscal 2023. The total assets of the company stood at Rs 81.8 crore as of March 31, 2024.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.