Paramount Dye Tec IPO Day 2: Subscription status, latest GMP and other key details about the SME IPO

Paramount Dye Tec day 1 subscription status: The SME IPO of Paramount Dye Tec opened for subscription on Monday, September 30. The company aims to raise approximately ₹28 crore through this offering and plans to list its shares on the NSE SME platform. 

Paramount Dye Tec’s IPO is entirely a fresh equity issue of 24.3 lakh shares.

Paramount Dye Tec IPO key dates

The IPO opened on September 30 and will close on October 3. The final allotment of shares is expected to occur on October 4, with the listing of shares likely to occur on October 8.

Paramount Dye Tec subscription status

The IPO of Paramount Dye Tec was subscribed 0.93 times overall by October 1, 2024, at 1:58:00 PM. The retail category saw the highest interest, with a subscription rate of 1.83 times, while the Non-Institutional Investors (NII) category was subscribed only 0.07 times. The Qualified Institutional Buyers (QIB) segment did not witness any subscriptions. Anchor investors fully subscribed to their allotted shares with 6,91,200 shares, amounting to ₹8.087 crore, while market makers subscribed 1,22,400 shares, totalling ₹1.432 crores. Retail investors bid for 14,77,200 shares against the 8,08,800 shares offered, amounting to ₹17.283 crore. In contrast, the non-institutional segment bid for only 24,000 shares against the 3,46,800 offered, totalling ₹0.281 crores. Overall, out of the total 16,16,400 shares offered in the IPO, bids were received for 15,01,200 shares, amounting to ₹17.564 crore.

IPO price band

The company has set its price band at ₹111-117 per share. Investors can bid for a minimum of one lot, which consists of 1,200 shares.

Grey market premium (GMP)

In the unlisted market, there was a lack of activity in company shares. Ahead of the IPO opening, the company shares were flat with no grey market premium (GMP).

Paramount Dye Tec overview

Paramount Dye Tec specialises in waste recycling fibres and yarn manufacturing, primarily catering to the B2B textile industry. The company’s product range includes synthetic fibres and yarns such as acrylic yarn, polyester yarn, wool yarn, hand-knitting yarn, and acrylic blend yarn, which are known for their quality and durability.

For the financial year ending March 2024, Paramount Dye Tec reported a total revenue of ₹23.67 crore and a net profit of ₹3.54 crore.

The company plans to use the net proceeds from the IPO to set up a new manufacturing unit, repay debt, cover land registry expenses, and for general corporate purposes.

Gretex Corporate Services is the lead manager for the IPO, while Bigshare Services is the registrar for the issue.

Issue breakdown

In the IPO, 50 per cent of the offer is reserved for QIBs, 35 per cent for retail investors, and 15 per cent for NIIs.