Paramount Speciality Forgings
Book Building issueSMENSE₹32.34 Cr issue
+40.68%
Listing gain over issue price
Issue size
₹32.34 Cr
1 lot at cut-off
₹1,18,000
Lot size
2,000shares
Open
17 Sep 2024
Close
20 Sep 2024
Allotment
23 Sep 2024
Listing
25 Sep 2024
Listing performance
Issue price
₹59
Listed at
₹83
Listing-day close
₹87.15
Latest price
₹30.90
Close on 22 Oct 2026
Listing gain
+40.68%
Return since issue
-47.63%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 17 Sep 2024 – 20 Sep 2024
- Listing date
- 25 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹59 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹32.34 Cr
- Market cap at offer price
- ₹116 Cr
- Promoter holding
- 100.00% → 72.15% pre-issue → post-issue
- ISIN
- INE0Q6001012
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Swaraj shares & securities Pvt.Ltd.
- Registered office
- 3, 1, Guru Himmat Building, Dr.Mascarenhas Road Anjirwadi, Mazgaon, Maharashtra
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 | 15,60,000 | — | — |
| Market maker | 2,76,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹59
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,18,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,36,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,44,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,62,000 |
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.
Shares allocated
15,60,000
Anchor portion
₹9.20 Cr
at ₹59 per share
Valuation and performance
Valuation at offer price
₹59 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.87 | 3.69 |
| P/E (×) | 12.11 | 15.99 |
| Market cap | — | ₹116 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 31.65%
- ROCE
- 40.00%
- Debt / equity
- 1.09
- PAT margin
- 6.43%
- NAV per share
- ₹13.24
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Paramount Speciality Forgings
Paramount Speciality Forgings Limited (PSFL) was originally established as a partnership firm 'Paramount Forge' in November 1994, later converted to an LLP in June 2019, and finally to a Public Limited Company in May 2023. The company manufactures steel forgings with a production range from 1 Kg to 4 metric tons in rough or finish-machined condition. Since its inception in 1996, PSFL has expanded its operations, invested in advanced machinery, and developed manufacturing capabilities across two facilities in Kamothe and Khalapur. The company generates revenue by supplying forged components to diverse end-user industries, with significant exposure to petrochemical, oil & gas, nuclear, power, and heavy engineering sectors, as well as overseas markets.
Company Analysis
from RHPParamount Speciality Forgings Limited manufactures steel forged components for petrochemical, oil & gas, nuclear, power, and heavy engineering sectors in India.
Paramount Speciality Forgings Limited (PSFL) was originally established as a partnership firm 'Paramount Forge' in November 1994, later converted to an LLP in June 2019, and finally to a Public Limited Company in May 2023. The company manufactures steel forgings with a production range from 1 Kg to 4 metric tons in rough or finish-machined condition. Since its inception in 1996, PSFL has expanded its operations, invested in advanced machinery, and developed manufacturing capabilities across two facilities in Kamothe and Khalapur. The company generates revenue by supplying forged components to diverse end-user industries, with significant exposure to petrochemical, oil & gas, nuclear, power, and heavy engineering sectors, as well as overseas markets.
Steel forgingsPetrochemical, chemicals and fertilizersOil and gasNuclear and powerHeavy engineering
Objects of the Issue
- Funding capital expenditure requirements for expansion of manufacturing capacity through purchase of equipment and machinery ₹2,381.28 Lakhs (approximately) p.28
- General corporate expenses p.28
- Capital expenditure through purchase of machinery and equipment required for expansion at our Khalapur Plant ₹2,381.28 Lakhs p.99
- General corporate purposes [●] Lakhs (not exceeding 25% of Gross Proceeds) p.112
- Purchase of machinery and equipment for capital expansion of manufacturing capacity p.164
- General corporate purposes p.164
- Not specified in this document section
Issue Structure
- Total Issue
- 54,82,000* Equity Shares of face value of ₹10.00/- each aggregating to ₹[●] Lakhs
- Fresh Issue
- 48,02,000* Equity Shares of face value of ₹10.00/- each aggregating to ₹[●] Lakhs
- Offer for Sale
- 6,80,000* Equity Shares of face value of ₹10.00/- each aggregating to ₹[●] Lakhs
- Price Band
- [●] (Floor Price) to [●] (Cap Price) - to be decided by the Company in consultation with the Book Running Lead Manager
- Lot Size
- [●] Equity Shares minimum bid lot and multiples of [●] thereafter
- Face Value
- ₹10.00/- per Equity Share
Business Model
PSFL operates as a manufacturer and supplier of steel forged components. Revenue is generated through the sale of forged products to customers across various industries. The company receives short-term purchase orders (typically 6-18 weeks) from customers and manufactures products to specification. Raw materials are sourced from multiple suppliers, and finished products are delivered via third-party transportation providers.
Business Segments
Supply of forged components to petrochemical, chemicals and fertilizers industry
Supply of forged components to oil and gas industry
Supply of forged components to nuclear and power sector
Supply of forged components to heavy engineering and other sectors
Supply of forged components to international customers
Manufacturing of forged products through ring rolling and open forging processes
Manufacturing of closed die forged products
Seamless rings produced in configurations ranging from flat to cylindrical shapes, used in pressure vessels, heat exchangers, slewing rings, wind tower flanges, and oilfield equipment
Perforated plates designed to accept pipes or tubes, used to support and isolate tubes in heat exchangers, boilers, and filter elements
Forged valve parts including body, adaptors, balls, stems, trunnion plates, seat rings, bonnets, and y-strainer forgings manufactured in various materials
Forged nozzles with sufficient reinforcing in the nozzle neck for pressure vessels, designed to ANSI and ASME codes
Connection forgings for applications where pipes need to bend or go through different directions at high pressure
Specialized forged ring products for industrial applications
Forged components for railway applications
Forged gear components and blanks for industrial machinery
Supplies forged products to petrochemical, chemical and fertilizer industries
Supplies forged products to oil and gas sector
Supplies forged products to nuclear and power generation sector
Supplies forged products to heavy engineering and other industrial sectors
Exports forged products to international markets
SWOT Analysis
Strengths
- • No comparable listed competitors in India in steel forgings sector(p.53)
- • Diverse range of forged products offering(p.53)
- • Established customer and supplier relationships from promoter experience(p.57)
- • Industry experience enabling growth and profitability(p.57)
- • Improved working capital efficiency(p.54)
- • Strong interest coverage ratio(p.55)
- • Long-standing customer relationships across diverse industries(p.134)
- • Advanced manufacturing facilities with modern equipment(p.134)
- • Significant production capacity and diverse product range(p.135)
- • Track record of healthy financial performance(p.162)
- • Quality management system certifications and accreditations(p.164)
- • Experienced management team with deep domain expertise(p.163)
- • Strong gross profit margins showing operational efficiency(p.159)
- • Experienced management with decades of industry expertise(p.195)
- • Long-standing customer relationships across multiple sectors(p.244)
- • Diversified product portfolio and manufacturing capabilities(p.240)
- • Significant improvement in profitability and margins(p.241)
- • Strong international presence and export capability(p.230)
Weaknesses
- • No long-term customer agreements; reliance on short-term purchase orders(p.36)
- • High concentration of raw material suppliers(p.37)
- • Geographic concentration of manufacturing facilities(p.38)
- • Significant dependence on raw material costs representing over half of revenue(p.40)
- • Negative operating cash flows in recent years(p.47)
- • Significant unsecured borrowings that may be recalled(p.47)
- • No orders placed for majority of planned capital expenditure machinery(p.49)
- • Significant debt burden with rising borrowings(p.55)
- • High debt-to-equity ratio indicating leverage(p.55)
- • Capital intensive business requiring continuous investment(p.54)
- • Dependence on promoter involvement and skills(p.57)
- • Promoter Group conflict of interest in similar business(p.57)
- • No Non-Compete Agreement with promoters(p.57)
- • Contingent liabilities with guarantees and letters of credit(p.56)
- • Limited board experience with public company governance(p.59)
- • Significant dependence on a limited customer base(p.160)
- • High debt levels relative to equity(p.159)
- • Negative operating cash flow(p.159)
- • Concentration of manufacturing capacity in single geographic location(p.134)
- • Heavy reliance on raw material costs representing majority of revenue(p.135)
- • Heavy reliance on top customers for revenue concentration(p.244)
- • Significant debt burden relative to equity(p.261)
- • Negative operating cash flow in recent years(p.208)
- • Underutilization of machining capacity(p.246)
- • Limited employee stock option plan(p.192)
- • Multiple pending income tax disputes with significant additions proposed across multiple assessment years(p.263)
- • Ongoing GST audits with broad-ranging document requests and compliance scrutiny(p.264)
- • Material creditor concentration with top 157 creditors representing 70.9% of total outstanding dues(p.265)
- • Regulatory approvals pending for proposed plant expansion(p.270)
- • Trademarks registered in firm name requiring mutations following conversion from partnership to company(p.270)
Opportunities
- • Expansion of manufacturing capacity through capital expenditure(p.48)
- • Growth in export revenues from overseas markets(p.42)
- • Diversification into new sectors beyond current customer base(p.36)
- • Expansion of manufacturing capacity at Khalapur Plant(p.100)
- • Increase machining capacity to reduce lead times and improve competitiveness(p.113)
- • Expand closed die forging capabilities for higher value-added segments(p.113)
- • Modernize forging process to enhance productivity and serve defense and aerospace sectors(p.113)
- • Growth through strategic initiatives and acquisitions(p.113)
- • Expanding forging market driven by industrialization(p.128)
- • Diversification into high-growth non-automotive sectors(p.129)
- • Growing export opportunities and international demand(p.130)
- • Capacity expansion to capture growing demand(p.164)
- • Strategic market positioning through geographic expansion(p.164)
- • Growing demand for lightweight aluminium products in electric vehicles(p.129)
- • Expansion into growing end-use industries(p.240)
- • Increase market share in Oil and Gas sector(p.243)
- • Growth in Nuclear and Power sector(p.243)
- • Increase in export market penetration(p.243)
- • Capacity utilization improvement potential(p.244)
- • Expansion potential with application filed for Khalapur plant expansion and stated commitment to growth(p.270)
- • Market-making support and listing on SME exchange providing liquidity and visibility(p.293)
- • Public capital access for growth via SME IPO pathway with 100% underwriting(p.292)
Threats
- • Cyclical demand linked to end-user industries (auto, petrochemical, oil & gas)(p.37)
- • Foreign exchange rate fluctuation exposure on export revenues(p.39)
- • Raw material price volatility and supply chain disruptions(p.40)
- • Power and fuel supply disruptions or price increases(p.41)
- • Regional economic and political instability affecting operations(p.42)
- • Regulatory and environmental compliance risks(p.46)
- • Product quality and compliance risks with customer specifications(p.46)
- • Economic slowdown in key trading partners affecting demand(p.60)
- • Geopolitical conflicts impacting financial markets and supply chains(p.59)
- • Changes in tariff and non-tariff barriers affecting imports and exports(p.61)
- • Natural disasters, epidemics, pandemics and terrorism risks(p.59)
- • Interest rate increases affecting borrowing costs(p.55)
- • High inflation impacting employee costs and product demand(p.60)
- • Risk of adverse changes in corporate and tax laws(p.60)
- • Volatility and potential shortage of raw materials affecting costs(p.131)
- • Electrification of automotive industry reducing forging demand(p.131)
- • No comparable listed peers limiting valuation benchmarking(p.117)
- • Intense competition from organized and unorganized players(p.166)
- • Dependence on third-party transportation providers(p.169)
- • Global economic slowdown impacting industrial demand(p.124)
- • Significant power and fuel requirement vulnerabilities(p.169)
- • Raw material price volatility(p.244)
- • Foreign exchange exposure risk(p.245)
- • Dependency on specific geographic markets(p.245)
- • Industry cyclicality and economic sensitivity(p.259)
- • Tax litigation uncertainty(p.262)
- • Regulatory scrutiny on tax compliance with sustained challenges on multiple deduction categories(p.263)
- • GST compliance risks with expansive audit scope covering input tax credit and export claims(p.264)
- • Outstanding tax demands totaling ₹25.98 lakh pending resolution across multiple years(p.263)
- • Regulatory environment requiring strict compliance for continued operations and licensing(p.267)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Aliasgar Roshan Hararwala | Promoter Selling Shareholder | 17.14% | 12.37% |
| Aliasgar Abdulla Bhagat | Promoter Selling Shareholder | 11.43% | 8.25% |
| Mohammed Salim Hararwala | Promoter Selling Shareholder | 9.53% | 6.87% |
| Abdulla Aliasgar Bhagat | Promoter Selling Shareholder | 17.14% | 12.37% |
| Hoozefa Saleem Hararwala | Promoter Selling Shareholder | 9.52% | 6.87% |
| Abbasali Salim Hararwala | Promoter Selling Shareholder | 9.52% | 6.87% |
| Zahid Mohamadi Hararwala | Promoter Selling Shareholder | 14.29% | 10.31% |
| Roshan Alihusain Hararwala | Promoter Selling Shareholder | 11.43% | 8.25% |
| Aliasgar Roshan Hararwala | Promoter | 17.14% | 12.96% |
| Aliasgar Abdulla Bhagat | Promoter | 11.43% | 8.64% |
| Mohammed Salim Hararwala | Promoter | 9.53% | 7.20% |
| Abdulla Aliasgar Bhagat | Promoter | 17.14% | 12.96% |
| Hoozefa Saleem Hararwala | Promoter | 9.52% | 7.20% |
| Abbasali Salim Hararwala | Promoter | 9.52% | 7.20% |
| Zahid Mohamadi Hararwala | Promoter | 14.29% | 10.80% |
| Roshan Alihusain Hararwala | Promoter | 11.43% | 8.64% |
| Aliasgar Roshan Hararwala | Promoter | 17.14% | 12.37% |
| Mohammed Salim Hararwala | Promoter | 9.53% | 6.87% |
| Aliasgar Abdulla Bhagat | Promoter | 11.43% | 8.25% |
| Aliasgar Roshan Hararwala | Promoter | 17.14% | — |
| Mohammed Salim Hararwala | Promoter | 9.53% | — |
| Aliasgar Abdulla Bhagat | Promoter | 17.14% | — |
| Abdulla Aliasgar Bhagat | Promoter | 11.43% | — |
| Hoozefa Saleem Hararwala | Promoter | 9.52% | — |
| Abbasali Salim Hararwala | Promoter | 9.52% | — |
| Zahid Mohamadi Hararwala | Promoter | 14.29% | — |
| Roshan Alihusain Hararwala | Promoter | 11.43% | — |
| Aliasgar Roshan Hararwala | Promoter Selling Shareholder | — | — |
| Aliasgar Abdulla Bhagat | Promoter Selling Shareholder | — | — |
| Mohammed Salim Hararwala | Promoter Selling Shareholder | — | — |
| Abdullah A. Bhagat | Promoter Selling Shareholder | — | — |
| Hoozefa Saleem Hararwala | Promoter Selling Shareholder | — | — |
| Abbasali Salim Hararwala | Promoter Selling Shareholder | — | — |
| Zahid Mohamadi Hararwala | Promoter Selling Shareholder | — | — |
| Roshan Alihusain Hararwala | Promoter Selling Shareholder | — | — |
Leadership
Aliasgar Roshan Hararwala · Managing Director
Aliasgar Abdulla Bhagat · Chairman
Mohammed Salim Hararwala · Director
Farkhanda Abdul Razak Pagarkar · Chief Financial Officer
Ankita Anil Patankar · Company Secretary and Compliance Officer
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.
Paramount Speciality Forgings IPO FAQs
What is the lot size of Paramount Speciality Forgings IPO?
The minimum lot size of Paramount Speciality Forgings IPO is 2,000 shares. One lot costs ₹1,18,000 at the cut-off price.
When does Paramount Speciality Forgings IPO open and close?
Paramount Speciality Forgings IPO opened for subscription on 17 Sep 2024 and closed on 20 Sep 2024.
What is the listing date of Paramount Speciality Forgings IPO?
Paramount Speciality Forgings IPO listed on 25 Sep 2024.