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Paramount Speciality Forgings IPO: Things Smart Investors Need to Know

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Incorporated in 1994, Paramount Speciality Forgings Limited is one of India's leading steel forgings manufacturers. The company’s expertise lies in producing high-quality forged components that meet both national and international standards. Over the years, Paramount has developed a solid presence across key industrial sectors, including petrochemicals, chemicals, fertilizers, oil and gas, nuclear power, and heavy engineering.

With two manufacturing facilities located in Kamothe and Khalapur, Maharashtra, Paramount Speciality Forgings has developed a comprehensive product portfolio. This includes items such as tube sheet blanks, forged rings, spacers, girth flanges, and various valve components, among others. The company’s modernized manufacturing processes, including a closed die forging plant and ring rolling facility, have allowed it to cater to diverse client needs, both domestically and globally.

Paramount Speciality Forgings IPO Details and Objectives

Category

Details

IPO Open Date

September 17, 2024

IPO Close Date

September 19, 2024

Listing Date

September 24, 2024

With a total issue size of 5,482,000 shares, the IPO will raise approximately ₹32.34 crore, offering shares within a price band of ₹57 to ₹59 per share. The IPO is categorized as a Book Built Issue and is expected to be listed on the NSE SME platform.

Purpose of the IPO:

The fresh issue of ₹28.33 crore will be utilized for expanding the company’s manufacturing capacity by acquiring new machinery and equipment for its Khopoli Plant, as well as for general corporate purposes.

Expected Funds to be Raised:

Through the IPO, Paramount Speciality Forgings aims to raise ₹32.34 crore, comprising ₹28.33 crore from fresh issues and ₹4.01 crore from offers for sale.

Key Dates to Remember

  • IPO Open Date: September 17, 2024
  • IPO Close Date: September 19, 2024
  • Basis of Allotment: September 20, 2024
  • Initiation of Refunds: September 23, 2024
  • Credit of Shares to Demat: September 23, 2024
  • Listing Date: September 24, 2024

Pricing and Lot Size of Paramount Speciality Forgings IPO

  • Price Band for the IPO: ₹57 to ₹59 per share.
  • Minimum Lot Size and Application Details (Retail Investors): Investors can bid for a minimum of 2,000 shares, translating to an investment range of ₹1,18,000 per lot at the upper price band.

How to Apply for the Paramount Speciality Forgings IPO?

Online Application Process:

  1. Log in to your Bajaj Broking trading account linked with your Demat account.
  2. Navigate to the IPO section of your broker's platform.
  3. Select "Paramount Speciality Forgings IPO" and choose the number of lots you want to apply for.
  4. Enter your UPI ID and confirm the application amount.
  5. Approve the UPI mandate on your banking app to block the required funds.

Financial Health and Performance

  • Key Financial Metrics:
    • Revenue (FY 2024): ₹11,363.62 lakh
    • Profit After Tax (FY 2024): ₹725.36 lakh
    • Debt/Equity Ratio (FY 2023): 1.09
  • Recent Performance and Growth Prospects: Paramount Speciality Forgings has shown consistent growth, with its revenue increasing by 1% and PAT rising between FY 2023 and FY 2024.

Investment Risks and Opportunities

  • Potential Risks of Investing in the IPO:
    • Dependence on the steel industry for raw materials may affect profitability due to price fluctuations.
    • Competitive pressure from international manufacturers.
  • Opportunities and Growth Potential:
    • The company’s strategic expansion of its manufacturing capacity through IPO funds is expected to enhance production output.
    • Increasing global demand for forged components across multiple industrial sectors presents a growth opportunity.

Conclusion

Paramount Speciality Forgings IPO presents an opportunity for investors to be a part of a leading player in India’s steel forgings industry. With a clear expansion plan and robust financials, the IPO holds potential for strong post-listing performance. However, investors should assess the associated risks and market conditions before making an investment decision.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

What is the Northern ARC Capital IPO and why is it significant?

Answer Field

The Northern ARC Capital IPO is a book-built initial public offering aiming to raise up to ₹777 crore by offering shares of Northern ARC Capital. It is significant as it provides an opportunity for investors to acquire shares in a key player in the financial services sector and supports the company's growth and expansion.

What is the price band for the Northern ARC Capital IPO, and how was it determined?

Answer Field

The price band for the Northern ARC Capital IPO is set between ₹249 and ₹263 per share. This range was determined based on the company’s valuation, market conditions, and investor interest, ensuring a balance between attractiveness to investors and the capital requirements of the company.

What are the key risks and rewards of investing in the Northern ARC Capital IPO?

Answer Field

Key risks include potential market volatility and regulatory changes that could affect the company's operations. Rewards may involve capital gains and exposure to a prominent financial services company with promising growth prospects, contingent on the company's post-IPO performance.

When will the Northern ARC Capital IPO shares be listed, and what is the expected market response?

Answer Field

The Northern ARC Capital IPO shares are expected to be listed on September 24, 2024. The market response will depend on investor sentiment and the company’s performance, with initial trading reflecting the overall demand and market conditions.

What documents should I review before investing in the Northern ARC Capital IPO?

Answer Field

Before investing in the Northern ARC Capital IPO, review the Draft Red Herring Prospectus (DRHP) for detailed information about the company’s financials, risk factors, and the terms of the IPO.

What are the lock-up period details for Northern ARC Capital IPO?

Answer Field

The lock-up period for the Northern ARC Capital IPO generally restricts major shareholders and insiders from selling their shares for a certain duration after the IPO. This measure aims to stabilize the stock price and ensure a smooth transition to public trading.

How will the Northern ARC Capital IPO impact existing shareholders?

Answer Field

Existing shareholders may experience changes in their ownership percentage due to the issuance of new shares in the IPO. The impact will depend on the amount of new capital raised and the overall performance of the company post-IPO.

Will Northern ARC Capital IPO pay dividends?

Answer Field

Information about Northern ARC Capital IPO dividend payments will be outlined in the company’s post-IPO announcements and financial statements. Investors should check these documents for details on any future dividend policies.

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