Paramount Dye Tec
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2024 – 03 Oct 2024
- Listing date
- 08 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹117 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹28.43 Cr
- Market cap at offer price
- ₹81.23 Cr
- Promoter holding
- 99.97% → 64.98% pre-issue → post-issue
- ISIN
- INE0TG801013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- Village Mangarh, Machiwara Road, Kohara, Punjab
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 | 6,91,200 | — | — |
| Market maker | 1,22,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹117
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,40,400 |
| S-HNI (min) | 2 | 2,400 | ₹2,80,800 |
| S-HNI (max) | 7 | 8,400 | ₹9,82,800 |
| B-HNI (min) | 8 | 9,600 | ₹11,23,200 |
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 (₹) | 7.85 | 5.10 |
| P/E (×) | 14.90 | 22.94 |
| Market cap | — | ₹81.23 Cr |
Key performance indicators
- Return on net worth
- 11.68%
- ROCE
- 16.53%
- Debt / equity
- 0.54
- PAT margin
- 15.06%
- NAV per share
- ₹67.31
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Paramount Dye Tec
Paramount Dye Tec Limited (PDTL) was initially established as a Partnership Firm under the Partnership Act, 1932 on January 01, 2014, and converted to a Public Limited Company on January 04, 2024. The company is based in Ludhiana, Punjab, and operates in the recycling and manufacturing of synthetic fibers and yarns. PDTL offers a diverse range of products including acrylic yarn, polyester yarn, wool yarn, hand-knitting yarn, and acrylic blend yarn, targeting B2B customers in the textile industry. The company is ISO 9001:2015 and Good Manufacturing Practice (GMP) certified. PDTL generates majority of its revenue from manufacturing of fiber and yarn, which comprised 70.24% of total revenue from operations for the period ended March 31, 2024.
Company Analysis
from RHPParamount Dye Tec Limited is a waste recycling fiber and yarn manufacturing company catering to the B2B textile industry segment.
Paramount Dye Tec Limited (PDTL) was initially established as a Partnership Firm under the Partnership Act, 1932 on January 01, 2014, and converted to a Public Limited Company on January 04, 2024. The company is based in Ludhiana, Punjab, and operates in the recycling and manufacturing of synthetic fibers and yarns. PDTL offers a diverse range of products including acrylic yarn, polyester yarn, wool yarn, hand-knitting yarn, and acrylic blend yarn, targeting B2B customers in the textile industry. The company is ISO 9001:2015 and Good Manufacturing Practice (GMP) certified. PDTL generates majority of its revenue from manufacturing of fiber and yarn, which comprised 70.24% of total revenue from operations for the period ended March 31, 2024.
Objects of the Issue
- Setting up of Manufacturing Unit ₹1,600.00 Lakhs p.27
- Repayment/Prepayment of Certain Debt Facilities availed by our Company ₹450.00 Lakhs p.27
- Expenses towards Registry of Land purchased from Promoter ₹100.00 Lakhs p.27
- General Corporate Purposes p.27
- Setting up of Manufacturing Unit ₹1,600.00 Lakhs p.79
- Repayment/Prepayment of Certain Debt Facilities availed by our Company ₹450.00 Lakhs p.83
- Expenses towards Registration of Land purchased from Promoter ₹100.00 Lakhs p.84
- General Corporate Purposes p.84
- Funding capex for upgrading yarn manufacturing facilities and increasing manufacturing capacity p.124
- Research and development initiatives to develop finer quality yarn and fiber p.124
- Expanding sales and distribution channels to reach new markets p.124
- Not explicitly stated in this part
Issue Structure
- Total Issue
- ₹[●] Lakhs
- Fresh Issue
- Upto 24,30,000 Equity Shares of ₹10.00 each aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹111.00 to ₹117.00 per Equity Share
- Lot Size
- 1,200 Equity Shares and in multiples of 1,200 thereafter
- Face Value
- ₹10.00 each
Business Model
PDTL generates revenue through manufacturing and selling synthetic fibers and yarns to B2B customers in the textile industry. The company operates manufacturing facilities for recycling waste synthetic materials and producing finished yarn products. Revenue is derived primarily from the sale of various yarn types including acrylic yarn, polyester yarn, wool yarn, hand-knitting yarn, and acrylic blend yarn.
Business Segments
SWOT Analysis
- • ISO certified with GMP standards(p.26)
- • Use of recycled synthetic waste as raw materials with proprietary recycling technology(p.123)
- • Substantial margin benefits from cost-efficient production methods(p.123)
- • ISO 9001:2015 and GMP certification with robust quality management system(p.112)
- • Integrated fiber and yarn manufacturing offering one-stop solution(p.124)
- • Strong operational capacity with modern machinery and skilled workforce(p.124)
- • Experienced promoters with strong customer relationships and industry knowledge(p.112)
- • Structured corporate governance with independent board oversight(p.160)
- • Formal compliance mechanisms for stakeholder grievances and sexual harassment(p.162)
- • CSR commitment to sustainable development(p.164)
- • Whistleblower protection mechanism in place(p.161)
- • Established waste synthetic fiber recycling business(p.232)
- • Diversified product portfolio(p.232)
- • Positive cash generation from operations in recent years(p.247)
- • ISO 9001:2015 certified manufacturing processes(p.242)
- • Strong recent revenue and profit growth(p.226)
- • High customer concentration among top 10(p.32)
- • Majority revenue from single business segment(p.31)
- • High supplier concentration(p.31)
- • Geographic concentration in single state(p.32)
- • Recently converted to public company(p.40)
- • No long-term customer contracts(p.39)
- • Multiple statutory non-compliances(p.33)
- • Recent incorporation with minimal operating history(p.56)
- • Significant debt obligations requiring prepayment from IPO proceeds(p.83)
- • Dependence on single major lender with high interest rate(p.84)
- • Limited financial history for performance assessment(p.91)
- • Concentrated shareholding with promoters holding 99.97% pre-issue(p.72)
- • High dependence on few customers concentrating revenue risk(p.130)
- • Significant reliance on few raw material suppliers(p.130)
- • Seasonal dependency of business with exposure to winter apparel market(p.112)
- • Limited international market presence compared to domestic(p.125)
- • All operations concentrated in single state of Punjab(p.113)
- • Pollution control consent for one manufacturing facility still under process(p.126)
- • High reliance on promoter shareholding concentration(p.172)
- • Managing director holds majority equity and CFO role creating concentration of power(p.169)
- • Minimal formal remuneration structure for KMPs(p.169)
- • No established employee stock option or profit-sharing schemes(p.170)
- • Significant financial debt obligations(p.230)
- • Limited historical operating cash generation(p.229)
- • Inventory management challenges(p.229)
- • Exposure to inflation and input cost volatility(p.231)
- • Reliance on few customers for B2B business(p.231)
- • Expansion of manufacturing capacity to serve growing textile demand(p.79)
- • Increase production efficiency and achieve economies of scale(p.79)
- • Significant increase in installed capacity from 4.8 to 11.8 MT per day(p.83)
- • India positioned as fastest-growing major economy with strong growth prospects(p.101)
- • Government capital expenditure initiatives supporting manufacturing sector(p.102)
- • Growing domestic textile market with expanding technical textiles sector(p.125)
- • Government support through production-linked incentive schemes for textile sector(p.135)
- • Expanding Indian technical textiles market with 10% growth rate(p.105)
- • Diversification into cotton-polyester blended yarns for all-season products(p.112)
- • Export potential leveraging India's position as world's largest cotton producer(p.105)
- • Rising sustainability demand creating market for recycled fibers(p.132)
- • Emerging opportunity in textile recycling market with government initiatives(p.104)
- • Expansion through CSR initiatives targeting sustainable livelihoods(p.164)
- • Enhanced board diversity and governance framework(p.163)
- • Strengthened internal audit and risk management capability(p.161)
- • Development of insider trading compliance infrastructure(p.168)
- • Entry into new markets and geographies(p.232)
- • Migration to NSE Main Board for growth capital access(p.263)
- • Growth in Indian textile industry demand(p.231)
- • Expansion of manufacturing capacity and capabilities(p.226)
- • Regulatory burden in chemical/dye sector(p.38)
- • Intense competition from organized and unorganized players(p.32)
- • Raw material price fluctuations and supply disruptions(p.39)
- • Power supply disruptions and tariff increases(p.36)
- • Transportation cost increases(p.39)
- • Global economic volatility and trade tensions impacting demand(p.99)
- • Exposure to global financial instability and contagion effects(p.47)
- • Vulnerability to natural disasters and climate events(p.48)
- • Political instability and changes in government policy affecting business(p.47)
- • Competition Act constraints limiting commercial arrangements(p.49)
- • Risk of sovereign rating downgrade raising financing costs(p.48)
- • Intense competition from domestic and international manufacturers with price pressures(p.125)
- • Vulnerability to fluctuations in raw material costs and currency exchange rates(p.125)
- • Fluctuating raw material prices affecting pricing and competitive position(p.132)
- • Stricter environmental regulations increasing compliance costs(p.125)
- • Risk of rapid technological obsolescence requiring continuous capital investment(p.125)
- • Trade barriers and regulatory changes affecting market access(p.125)
- • Competition from natural fibers appealing to customers seeking natural alternatives(p.132)
- • Key personnel litigation history undisclosed but flagged for review(p.174)
- • Regulatory risk from evolving CSR compliance requirements(p.165)
- • Potential operational disruption from sexual harassment complaints(p.168)
- • Dependency on external audit quality and regulatory oversight(p.161)
- • Intense competition from established and unorganized players(p.232)
- • Vulnerability to global commodity price volatility(p.231)
- • Exposure to interest rate risk on debt(p.231)
- • Regulatory and compliance risks in environmental approvals(p.240)
- • Dependence on operating in textile sector(p.232)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Kunal Arora | Promoter | 79.56% | 13.27% |
| Ms. Palki Arora | Promoter | 20.42% | 51.70% |
| Mr. Kunal Arora | Promoter | 79.56% | 51.70% |
| Ms. Palki Arora | Promoter | 20.42% | 13.27% |
| Mr. Kunal Arora | Promoter | 79.56% | — |
| Ms. Palki Arora | Promoter | 20.42% | — |
| Kunal Arora | Promoter | 79.56% | — |
| Palki Arora | Promoter | 20.42% | — |
| Kunal Arora | Promoter | — | — |
| Palki Arora | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP 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 RHP before relying on it.