The Paramount Dye Tec IPO is garnering attention as it progresses into Day 2 of its subscription phase. The SME IPO has piqued investor interest, especially among retail investors, who are closely watching the developments.
Here’s everything you need to know about the subscription status, grey market premium (GMP), and other critical details about the IPO.
Paramount Dye Tec IPO Overview
The Paramount Dye Tec IPO is a fresh issue of 24.3 lakh shares with the company aiming to raise approximately ₹28 crore at the upper price band.
This IPO falls under the SME (Small and Medium Enterprises) category, and its shares are proposed to be listed on the NSE SME platform.
Key Details of Paramount Dye Tec IPO
| Detail | Information |
|---|---|
| IPO Type | SME IPO |
| IPO Size | ₹28 crore |
| Price Band | ₹111-₹117 per share |
| Opening Date | September 30, 2024 |
| Closing Date | October 3, 2024 |
| GMP | Nil |
| Lead Manager | Gretex Corporate Services |
| Registrar | Bigshare Services |
| Revenue (FY 2024) | ₹23.67 crore |
| Net Profit (FY 2024) | ₹3.54 crore |
| Listing Date | October 8, 2024 |
Paramount Dye Tec IPO Subscription Status on Day 2
As of Day 2 (October 1, 2024), the subscription status of the Paramount Dye Tec IPO is as follows:
- Retail category: 1.83 times subscribed
- Non-Institutional Investors (NII): 0.07 times subscribed
- Qualified Institutional Buyers (QIB): No subscriptions yet
In total, the IPO has been subscribed 0.93 times overall by 1:58 PM on Day 2. The retail category has seen the highest interest, with subscriptions exceeding the shares offered, while the NII category has witnessed relatively less activity. The QIB category is yet to witness any subscriptions.
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Anchor Investors
Anchor investors have fully subscribed to their allotted shares, with 6,91,200 shares worth ₹8.087 crore taken up. Market makers have subscribed to 1,22,400 shares, totaling ₹1.432 crore.
The strong retail interest has led to the retail category’s 14,77,200 shares being fully bid against the 8,08,800 shares offered.
Non-Institutional Investors (NII)
On the other hand, the non-institutional segment has underperformed with bids for only 24,000 shares against 3,46,800 shares offered, amounting to a mere ₹0.281 crore.
Paramount Dye Tec IPO Subscription Timeline
| Event | Date |
|---|---|
| IPO Opening Date | September 30, 2024 |
| IPO Closing Date | October 3, 2024 |
| Allotment Date | October 4, 2024 |
| Refund Initiation Date | October 7, 2024 |
| Credit of Shares to Demat | October 7, 2024 |
| Listing Date | October 8, 2024 |
IPO Grey Market Premium (GMP)
As of now, the Paramount Dye Tec IPO GMP remains flat, with no premium recorded in the grey market. Despite the absence of a grey market premium, the SME IPO has managed to attract retail investors, especially those interested in textile and manufacturing sectors.
Paramount Dye Tec’s Business Overview
Paramount Dye Tec specializes in recycling waste synthetic fibers to manufacture high-quality yarns for the B2B textile industry. The company’s product offerings include:
- Acrylic yarn
- Polyester yarn
- Wool yarn
- Hand-knitting yarn
- Acrylic blend yarn
These products are well-regarded for their quality, durability, and eco-friendly manufacturing processes. Paramount Dye Tec is focused on minimizing waste and contributing to a sustainable production cycle, which is a growing priority for businesses and consumers alike.
Financial Performance
For the financial year ending March 2024, Paramount Dye Tec reported the following financial highlights:
- Total revenue: ₹23.67 crore
- Net profit: ₹3.54 crore
These numbers reflect solid business performance, positioning the company for further growth post-IPO. The proceeds from the IPO are planned for the following uses:
- Setting up a new manufacturing unit for expanding operations.
- Repaying existing debt to strengthen the company’s financial health.
- Covering land registry expenses and general corporate purposes.
Conclusion
The Paramount Dye Tec IPO has garnered solid interest from retail investors, while the GMP remains flat. The company’s focus on sustainable fiber manufacturing, coupled with the growing demand for eco-friendly textile products, could result in long-term gains for investors.
With anchor investors fully subscribing to their shares and the overall subscription picking up, the IPO is expected to perform well in the coming days.
Retail investors are encouraged to keep a close eye on the grey market activity and the final subscription numbers as the IPO progresses towards its listing date on October 8, 2024.
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Disclaimer
The information provided in this article is for educational and informational purposes only. The stock market involves risks, and the performance of any stock is subject to market conditions and individual financial decisions. Readers should conduct their own research or consult with a financial advisor before making investment decisions. We are not responsible for any losses that may arise from decisions based on this content.