- Date : 25/10/2023
- Read: 4 mins
Paragon Fine And Speciality Chemicals are up next in the IPO assembly line. Will the competitive industry overwhelm the strong financials? Key indicators here!
Paragon Fine and Speciality Chemicals Limited is a 19-year-old company engaged in the production of chemical intermediaries for pharmaceutical, agro, cosmetic, pigment and dye products. They also deal in custom synthesis and have an international market base. The company manufactures in Viramgam in Ahmedabad, Gujarat.
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Paragon Fine's IPO price band is Rs 95-100
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Retail investors can apply for shares worth up to Rs 1.2 lakh
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The company’s borrowing in October is 26% of the IPO value
Paragon Fine and Speciality Chemicals IPO Details
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Paragon Fine's IPO opening date is 26 October 2023, and it closes on 30 October 2023.
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Paragon Fine's IPO allotment date and refund date are 2 and 3 November 2023.
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The demat credit of shares is on 6 November, and Paragon Fine's IPO listing date is 7 November.
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The shares of face value Rs 10 are priced between Rs 95 and Rs 100.
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The lot size of the IPO is 1200 shares.
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The total IPO issue size is Rs 51.66 crore, which is entirely made up of fresh issues.
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After the IPO, the promoter shareholding will reduce from 100% to 73.6%.
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The objective of the IPO includes capital expenditure towards civil works in existing and new factory premises and on plant and machinery for expansion, debt repayment, working capital and general corporate purposes.
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Shares offered include up to 50% to qualified institutional investors, at least 15% to high-net-worth individuals and at least 35% to retail investors.
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Hem Securities is the lead manager of the IPO, while Bigshare Services is the registrar.
Also Read: JG Chemicals To Launch IPO: How Will It Benefit The Company And Investors?
Financial Performance
Paragon Fine and Speciality Chemicals registered a 24.16% increase in revenue and a 120% surge in profit after tax between the financial years 2022 and 2023. Let us have a look at the financial snapshot –
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Revenue – Increased from Rs 8,437 lakh in FY2021 to Rs 10,501 lakh in FY2023
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PAT - Increased from Rs 440 lakh to Rs 989 lakh during the same period
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Assets - valued at Rs 4,983 lakh in FY2021, and Rs 7,098 lakh in FY2023
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Borrowings - increased from Rs 2,193 lakh to Rs 2,521 lakh in FY 2023
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The long-term debt-equity ratio – 0.65 in FY2023, 1.1 in FY2022 and 1.48 FY2021
Conclusion
Paragon Fine and Speciality Chemicals is an SME IPO. It operates in a competitive industry that includes listed companies Aether Industries, Anupam Rasayan, Bodal Chemicals and heavyweights like Deepak Nitrite. The company has achieved improved financial performance and has specific expansion plans in the pipeline. A grey market premium of 20% was observed at the time of writing. Like any IPO, your risk research and advisor’s opinion are paramount for your decision.
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