Paramount Dye Tec Limited IPO

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PDTL is a Ludhiana, Punjab-based company, known for its innovative approach in manufacturing high-quality yarns through the recycling of synthetic fiber waste. Operating in the B2B sector of the textile industry, PDTL has established itself as a key player by offering a wide range of yarn products including acrylic yarn, polyester yarn, nylon yarn, wool yarn, hand-knitting yarn, and acrylic blend yarn. Each of these products is recognized for its superior quality, durability, and lasting impact.

Commitment to Sustainability and Innovation

At the core of PDTL’s operations is the use of synthetic waste fibers as the primary raw material for producing yarn. This recycling process plays a significant role in reducing industrial waste and contributes to the overall sustainability of the textile industry. By transforming pre-consumer synthetic waste into premium yarns, PDTL not only addresses environmental concerns but also enhances the economic efficiency of its production processes. The company’s focus on sustainability is further strengthened by its investment in continuous research and development (R&D), which has led to the creation of advanced technologies that enable the efficient recycling of synthetic fibers.

Through this innovative approach, PDTL meets the growing demand for sustainable and circular fashion, positioning itself as a leader in eco-friendly textile solutions. The company’s sustainable practices not only appeal to the environmentally-conscious market but also align with global trends toward reducing waste and improving resource efficiency in manufacturing processes.

Market Presence and Growth Potential

PDTL’s focus on sustainability, innovation, and quality has helped it carve out a niche in the textile industry, particularly in the growing market for eco-friendly and recycled yarns. The company’s ability to turn synthetic waste into high-quality yarn aligns with global trends towards sustainable fashion, providing it with a strong foundation for future growth.

As consumer preferences shift towards environmentally responsible products, PDTL is well-positioned to capitalize on this trend. Its advanced manufacturing capabilities, coupled with its commitment to continual improvement, give it a significant competitive advantage in both domestic and international markets.

Conclusion

PDTL is a company dedicated to sustainability, innovation, and quality in the textile industry. By recycling synthetic waste into premium yarn, the company not only contributes to the reduction of industrial waste but also meets the growing demand for sustainable fashion solutions.

Objects of the Paramount Dye Tec Limited IPO:

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects (“Objects of the Issue”): i. Setting up of Manufacturing Unit ii. Repayment/Prepayment of Certain Debt Facilities availed by the Company iii. Expenses towards Registration of Land purchased from Promoter iv. General Corporate Purposes.
DRHP of Paramount Dye Tec Limited IPO
RHP of Paramount Dye Tec Limited IPO

Paramount Dye Tec Limited IPO Details:

Open Date: Sep 30 2024
Close Date: Oct 03 2024
Total Shares: 2,430,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 28.43 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 111 - 117 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 08 2024

Promoters And Management:

Mr. Kunal Arora, 36, is the Promoter, Managing Director, and Chief Financial Officer of the company. Initially appointed as a Non-Executive Director on January 4, 2024, he became Managing Director on March 20, 2024, and CFO on May 25, 2024. With a BBA from Gujranwala Guru Nanak Institute of Management & Technology, Ludhiana, Mr. Arora founded Paramount Dye Tec in 2014. He has over a decade of experience in yarn production and marketing, overseeing manufacturing, quality control, and supply chain. As the driving force behind the company, he leads daily operations and mentors employees while ensuring customer satisfaction. Ms. Palki Arora, 35, is the Promoter and Executive Director of the Company. Initially appointed as a Non-Executive Director on January 4, 2024, she became Executive Director on March 15, 2024. Holding a BA and MA from MCM DAV College for Women, Chandigarh, Ms. Arora joined Paramount Dye Tec in 2016. With around eight years of experience in human resources, she focuses on maintaining operational efficiency and affordability. She drives continuous improvement, leads innovation, and actively seeks opportunities for personal and organizational growth. Mr. Rupesh, 40, is the Executive Director of the Company. Initially appointed as a Non-Executive Director on January 4, 2024, he became Executive Director on March 15, 2024. He joined Paramount Dye Tec in 2014 as an Accountant and became a Partner in 2023. With a Higher Secondary education from Himachal Pradesh Board of School Education, Dharamshala, completed in 2005, Mr. Rupesh brings expertise in financial operations, tax strategies, and budgeting. He oversees financial operations, develops tax and financial policies, and manages budgeting and capital requests for the Company.

Financials of Paramount Dye Tec Limited IPO:

Particular (In lakh) Q4 FY24 Mar-23 Mar-22 Mar-21
Revenue from Operations 2351 4,600 2,363 1,690
Cost of Material Consumed 742 1856 596 380
Purchases 1034 2153 1531 1230
Change in Inventories -5 -209 46 -31
Employee Cost 25 37 33 27
Other Expenses 41 151 41 23
EBITDA 514 612 116 61
EBIDTA Margin 21.86% 13.30% 4.91% 3.61%
Other income 17 0 4 0
Depreciation 17 59 55 17
Interest 40 30 47 20
Profit before tax 473 521 17 25
Tax 119 205 1 9
Net profit 354 316 16 16
NPM (%) 14.95% 6.87% 0.68% 0.95%
EPS 5.10 4.55 0.23 0.23

Comparison With Peers:

Company does not have any peer group company for comparison.

Lead Manager of Paramount Dye Tec Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Paramount Dye Tec Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Paramount Dye Tec Limited Village Mangarh Machiwara Road Kohara, Ludhiana - 141112 Phone: +91 9056855519 Email: info@paramountdyetec.com Website: https://www.paramountdyetec.com/

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