October 8, 2024
New Delhi, India
NSE SME IPO
Paramount Dye Tec had a disappointing debut on the NSE SME platform today, October 8, as its shares listed at ₹109.90 per share, reflecting a 6% discount to the IPO issue price of ₹117 per share.
IPO Details and Subscription
The company’s SME IPO was valued at ₹186.16 crore and was open for subscription from September 30 to October 3, 2024, priced between ₹111 and ₹117 per share. The public issue involved a fresh issue of 24.3 lakh shares, aggregating to ₹28.43 crore.
Despite the weak listing, the IPO had received a strong response from investors, with an overall subscription of 50.90 times:
- Non-Institutional Investor (NII) segment was oversubscribed by 135 times.
- Retail portion saw an oversubscription of 36 times.
- Qualified Institutional Buyers (QIB) booked at 10.22 times.
Also Read: SEBI Approves NSDL IPO; HDFC Bank, SBI to Divest Stake
Use of IPO Proceeds
Paramount Dye Tec plans to utilize the net proceeds from the fresh issue for:
- Setting up a new manufacturing unit.
- Repayment of certain debt facilities.
- Covering expenses related to land registration purchased from the promoter.
- General corporate purposes.
Also Read: Subam Papers Shares Debut with 6.58% Discount on BSE SME
About Paramount Dye Tec
Paramount Dye Tec specializes in manufacturing yarns by recycling waste synthetic fiber, primarily serving the B2B textile segment. The company produces a wide range of synthetic fiber and yarn products, including acrylic, polyester, nylon, wool, hand-knitting, and acrylic blend yarns, which are known for their quality and durability.
Operating from its facility in Punjab, the company has become a key player in the winter apparel market, producing yarns for products such as caps, gloves, mufflers, and thermal innerwear. Paramount Dye Tec has recently upgraded its machinery and production processes to diversify its product range and reduce seasonal business dependency.
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