Paramount Speciality Forgings Limited is a manufacturer of steel forgingsa, offering a diverse range of forged products. Paramount Speciality Forgings IPO aims to raise Rs 32.34 crores.
IPO opens
September 17, 2024
IPO Closes
September 20, 2024
IPO Size (Rs.)
₹32.34 Cr
Breakup
Fresh issue ₹28.33 Cr + OFS ₹4.01 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹57 to ₹59 per share
Minimum Lot
2000 Shares
Listing At
NSE SME
NII Quota
~50%
Retail Quota
~50%
Lead Manager
Swaraj shares and securities
Registrar
Purva Sharegistry
Market maker
Shreni Shares.
They are manufacturers of steel forgings in India with range of forged Products.
Since inception in 1996, they have expanded business and scale of operations and have invested in an array of machinery to increase and diversify production capabilities.
They manufacture and supply forged components weighing from 1Kg up to 4 metric tons in rough or finish-machined condition.
Operates two manufacturing facilities, with one in Kamothe and one in Khalapur, Maharashtra.
The Promoters of the company are 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.
Financials: Paramount Speciality Forgings IPO
Particulars/ Rs. Lacs
2024
2023
2022
Revenue from operations (₹ in Lakhs)
₹ 11,275.65
₹ 11,035.77
₹ 8,758.25
Profit after Tax (₹ in Lakhs)
₹ 725.36
₹ 275.84
₹ 313.44
Share Capital (₹ in Lakhs)
₹ 1,488.00
₹ 1.00
₹ 1.00
Net Worth (₹ in Lakhs)
₹ 2,291.49
₹ 1,566.14
₹ 1,970.49
Net Asset Value p
₹15.40/-
₹1,566.14/-
₹1,970.49/-
Total borrowings (₹ in Lakhs)
₹ 2,492.82
₹ 2,027.65
₹ 1,176.93
Post issue Share Capital
1968
FV
10.0
IPO price
59.0
EPS Fy23
1.4
PE Fy23
42.1
EPS Fy24
3.7
PE Fy24
16.0
Market cap in Lacs
11,611
Market cap / Sales
1.03
Paramount Speciality Forgings IPO: Anchors
Paramount Speciality Forgings IPO: Salient Points
The forging industry is a key link between critical manufacturing segments–metal suppliers (both ferrous and nonferrous) and end user industries. Over the years, the Indian forging industry has evolved from being a labour- intensive industry to capital-intensive manufacturing sector.
They are mainly into Flanges (75%) with oil and gas industry being the major user.
They also make forging for valve components.
The growth of Ferro-alloys Industry is linked with the development of the Iron and Steel Industry, Foundry Industry and to some extent Electrode Industry.
Net proceeds use is mainly (Approximately ₹2,381.28) for Funding capital expenditure requirements.
They srated with Oil and gas but now diversifed across many sectors including exports.
Sectors
For the Financial Year ended March 31
2024
2023
2022
Amount (₹ in Lakhs)
% of Total Revenue
Amount (₹ in Lakhs)
% of Total Revenue
Amount (₹ in Lakhs)
% of Total Revenue
Petrochemical, Chemicals and Fertilizers
₹3,347.68
29.79%
₹4,201.33
39.99%
₹3,390.05
38.52%
Oil and Gas
₹1,879.65
16.73%
₹1,386.63
13.20%
₹1,325.59
15.06%
Nuclear and Power
₹261.97
2.33%
₹211.27
2.01%
₹79.86
0.91%
Heavy Engineering and Other Sectors
₹1,865.41
16.60%
₹1,379.6
13.13%
₹1,422.16
16.16%
Overseas Customers
₹2,481.76
22.09%
₹1,994.12
18.98%
₹1,494.09
16.98%
Others
₹1,309.02
11.65%
₹1,332.92
12.69%
₹1,088.23
12.37%
They aim to further reduce their dependency on Oil and gas and also focus on other sectors includes Renewables ( Liquid Hydrogen)
In this phase they are augmenting their machining capacities and later will increase forging capacity.
intend to increase proportion of revenues from operations coming from outside India.
Management expect steady growth going forward.
PE 2024: 16x.
I intend to apply in Paramount Specialty Forgings IPO subject to availability of funds. Company’s performance should improve further as it set up additional machining capacity which is presently a bottleneck. The resulting faster execution of orders will mean more revenues and better profitability.
GMP as reported on social media is NIL but I expect it to be in +ve range.
Lead manager has an average record.
Market maker record is fair to good.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
