Paragon Fine and Speciality Chemical
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Oct 2023 – 30 Oct 2023
- Listing date
- 03 Nov 2023
- Face value
- ₹10 per share
- Issue price
- ₹100 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹51.66 Cr
- Market cap at offer price
- ₹196 Cr
- Promoter holding
- 100.00% → 73.60% pre-issue → post-issue
- ISIN
- INE0N4G01012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 1001/1, Parshwa Tower, Near Pakvan Hotel, S.G.Highway, Bodakdev, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 14,70,000 | — | — |
| Market maker | 2,61,600 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹100
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,20,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,40,000 |
| S-HNI (max) | 8 | 9,600 | ₹9,60,000 |
| B-HNI (min) | 9 | 10,800 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.87 | — |
| P/E (×) | 14.56 | — |
| Market cap | — | ₹196 Cr |
Key performance indicators
- Return on net worth
- 44.29%
- ROCE
- 38.86%
- PAT margin
- 9.67%
- NAV per share
- ₹15.51
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Paragon Fine and Speciality Chemical
Paragon Fine and Speciality Chemical Limited commenced business as a partnership firm in 2004 and evolved into custom synthesis and manufacturing of pharma intermediates, agrochemical intermediates, cosmetics intermediates, pigment intermediates and dye intermediates for a diverse base of Indian and global customers. The company operates a manufacturing facility in Viramgam District, Ahmedabad, Gujarat (approximately 7,000 square meters) equipped with reactors enabling manufacture of a diverse range of products. With dedicated in-house R&D facilities recognized by the Department of Scientific and Industrial Research, the company has expanded its commercialized product portfolio from around 100 products in Fiscal 2021 to around 140 products in Fiscal 2023. The company exports to countries including USA, Israel, Spain, United Kingdom, China, Switzerland, Taiwan, Thailand, Mexico, Japan, Russia, France, Indonesia, Latvia, and Germany. Revenue from top 10 customers contributed 70.23%, 79.67% and 80.76% in Fiscal 2023, 2022 and 2021 respectively.
Company Analysis
from DRHPParagon Fine and Speciality Chemical Limited manufactures custom-synthesized speciality chemical intermediates with complex and differentiated chemistry for pharma, agrochemical, cosmetics, pigment and dye industries.
Paragon Fine and Speciality Chemical Limited commenced business as a partnership firm in 2004 and evolved into custom synthesis and manufacturing of pharma intermediates, agrochemical intermediates, cosmetics intermediates, pigment intermediates and dye intermediates for a diverse base of Indian and global customers. The company operates a manufacturing facility in Viramgam District, Ahmedabad, Gujarat (approximately 7,000 square meters) equipped with reactors enabling manufacture of a diverse range of products. With dedicated in-house R&D facilities recognized by the Department of Scientific and Industrial Research, the company has expanded its commercialized product portfolio from around 100 products in Fiscal 2021 to around 140 products in Fiscal 2023. The company exports to countries including USA, Israel, Spain, United Kingdom, China, Switzerland, Taiwan, Thailand, Mexico, Japan, Russia, France, Indonesia, Latvia, and Germany. Revenue from top 10 customers contributed 70.23%, 79.67% and 80.76% in Fiscal 2023, 2022 and 2021 respectively.
Objects of the Issue
- Funding capital expenditure towards civil construction work in the existing premises of factory ₹ 100.06 lakhs p.20
- Funding capital expenditure towards civil construction work in Plot No 10/A, Situated at Survey No. 1359, 1360 Village-Viramgam Taluka- Viramgam, District-Ahmedabad-382150, Gujarat ₹ 144.00 lakhs p.20
- Repayment in full or in part, of certain of our outstanding borrowings ₹ 1290.00 lakhs p.20
- Funding Capital Expenditure towards installation of additional plant and machinery for Expansion ₹ 787.42 lakhs p.20
- Funding to meet working capital requirements [●] lakhs p.20
- General Corporate Purpose [●] lakhs p.20
Issue Structure
- Total Issue
- Upto ₹[●] Lakhs
- Fresh Issue
- Upto 51,66,000 Equity Shares of face value of ₹10/- each at an Issue Price of ₹[●] per Equity Share aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹[●] to ₹[●]
- Lot Size
- [●]
- Face Value
- ₹ 10 per Equity Share
Business Model
The company operates on a business-to-business custom synthesis and manufacturing model where it receives agreements, contracts or purchase orders from customers with specific technical specifications. The manufacturing process involves detailed proposals, R&D evaluation, customer validation, raw material procurement, and batch-wise manufacturing in reactors with controlled parameters (temperature, pressure, reaction time). Products are tested to meet applicable specifications before supply. The company primarily sources raw materials from third-party suppliers in India with some imports from China. Revenue is diversified across multiple industries with segments including dyes intermediates (68.86% in FY23), specialty intermediates (14.28%), agrochemicals (8.96%), cosmetics (6.16%), pigments (1.06%), and others (0.68%).
Business Segments
SWOT Analysis
- • Diversified product portfolio with 140+ products across multiple industries(p.105)
- • In-house R&D facility with recognized capabilities in complex chemistry(p.106)
- • Long-standing customer relationships across geographies spanning 12+ countries(p.107)
- • Strong and consistent financial performance with improving margins(p.108)
- • Experienced promoter team with 30+ years domain expertise in chemical industry(p.108)
- • Multiple quality certifications and sustainability memberships(p.108)
- • Heavy dependence on top 10 customers for 70% of revenue(p.107)
- • No patents for manufacturing processes, vulnerable to imitation(p.28)
- • Largest customer concentration at 21.86% of revenue(p.107)
- • Below-cost acquisition of shares by promoters indicating low IPO valuation(p.40)
- • Significant outstanding dues to promoters indicating capital dependence(p.36)
- • Trademark application opposed, no registered intellectual property(p.28)
- • Specialty chemicals sector expected to reach US$40 billion by 2025(p.109)
- • Government PLI scheme with 10-20% output incentives for agrochemicals(p.109)
- • India's rising position in specialty chemicals—projected to increase market share to 6% by 2026(p.97)
- • Expansion into new products—Food Grade Folic Acid and HALQUINOL under development(p.109)
- • Capacity utilization at 74.89% provides room for production expansion(p.37)
- • Export market growth—India expected to increase specialty chemicals share amid China+1 strategy(p.93)
- • Significant dependency on few major customers creates concentration risk(p.27)
- • Export revenue volatility—exports dropped from 63.47% to 33.87% between FY21-FY23(p.107)
- • Exchange rate fluctuations materially affecting export profitability(p.29)
- • Operating costs heavily dependent on volatile crude oil prices(p.113)
- • Intense competition from large multinational corporations and domestic players(p.33)
- • Geopolitical risks—Russia-Ukraine conflict disrupted European exports(p.28)
- • Concentration risk in single manufacturing facility in Gujarat(p.32)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dr. Pravinchandra Jasmat Vasolia | Promoter | 34.00% | — |
| Kishorkumar Panchabhai Patolia | Promoter | 21.67% | — |
| Vallabh Ratanji Savaliya | Promoter | 16.00% | — |
| Rutesh Vallabhbhai Savalia | Promoter | 8.00% | — |
| Shivam Kishorbhai Patolia | Promoter | 8.33% | — |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.