The initial public offering (IPO) of Paramount Speciality Forgings received a significant response, closing with an oversubscription of 68.7 times on the final day of subscription. The Rs 32.34-crore IPO saw bids for a total of 26,96,40,000 shares, compared to the available 39,22,000 shares, according to data provided by the NSE SME platform. This level of subscription demonstrates the substantial interest from various investor categories in the company’s equity offering.
IPO Structure and Subscription Details
The IPO consisted of a fresh issue of 48.02 lakh equity shares and an Offer-for-Sale (OFS) of up to 6.8 lakh shares by existing promoters and shareholders. Key stakeholders participating in the OFS include Aliasgar Roshan Hararwala, Aliasgar Abdulla Bhagat, Mohammed Salim Hararwala, Abdulla Aliasgar Bhagat, Hoozefa Saleem Hararwala, Abbasali Salim Hararwala, Zahid Mohamadi Hararwala, and Roshan Alihusain Hararwala.
The IPO attracted different levels of interest from various investor categories. Non-Institutional Investors (NIIs) led the demand, subscribing 220.54 times the shares available to them. Retail Individual Investors (RIIs) followed, with a subscription rate of 41.29 times. Qualified Institutional Buyers (QIBs) subscribed 20.87 times. This distribution shows a broad-based demand across the investor spectrum.
IPO Price and Use of Proceeds
The company set a price band of Rs 57 to Rs 59 per share for this offering. Proceeds from the fresh issue will be used primarily for capital expenditure. Specifically, the funds are designated for the purchase of new machinery and equipment necessary for expanding operations at the company’s Khalapur manufacturing plant in Maharashtra. A portion of the funds will also be allocated for general corporate purposes.
Company Overview
Paramount Speciality Forgings Ltd was established in 1994 and is a key player in the steel forging industry in India. The company manufactures a variety of forged products, including tube sheet blanks, forged rings, spacers, tyre rings, seats, valve bodies, and bonnets. These products serve a range of industrial sectors such as petrochemicals, chemicals, fertilizers, oil and gas, nuclear power, and heavy engineering.
The company’s forged products are used in critical applications across these industries, making it a key supplier in its field. The extensive product range highlights the company’s capability to cater to diverse industrial requirements. The company’s operations are spread across two manufacturing facilities in Maharashtra.
IPO Process and Listing Details
Swaraj Shares and Securities served as the sole book-running lead manager for the IPO process. Purva Sharegistry India acted as the registrar for the public issue. Following the successful conclusion of the subscription process, Paramount Speciality Forgings’ shares are expected to be listed on the NSE’s SME platform, Emerge.
The strong demand for Paramount Speciality Forgings’ IPO underlines the market’s confidence in the company’s operations, business model, and future growth potential.
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