Paramount Speciality Forgings Limited IPO

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The company has grown to become one of India’s leading manufacturers of steel forgings, offering a diverse range of forged products that cater to various industrial sectors. With over three decades of experience in the manufacturing industry, they have established ourselves as a trusted supplier to some of the most demanding sectors, including Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering industries.

Product Range and Capabilities

Their manufacturing capabilities are extensive, allowing us to produce forged components that range in weight from as small as 1 kilogram to as large as 4 metric tons. These components are available in both rough and finish-machined conditions, meeting both National and International standards. Their products are essential in a wide array of industrial applications, ensuring that we meet the specific needs of their diverse client base.

Market Presence and Clientele

Their extensive experience in the manufacturing sector has allowed them to serve a broad range of customers across multiple industries. They have developed strong, enduring relationships with clients in the Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and Heavy Engineering sectors. These relationships are built on their consistent delivery of high-quality products that meet the stringent standards required by these industries.

In summary, their company has grown from a small manufacturer to a significant player in the steel forging industry, known for their broad product range, advanced manufacturing capabilities, and commitment to quality. As they look to the future, they remain focused on continuing to meet the needs of their clients through innovation, investment, and unwavering dedication to excellence.

Objects of the Paramount Speciality Forgings Limited IPO:

The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects: i. Capital expenditure through the purchase of machinery and equipment required for expansion at the Khopoli Plant; ii. General Corporate purposes Total number of share issue :- i. Fresh issue is 4,802,000 shares, ii. Offer for sale is 680,000 shares.
DRHP of Paramount Speciality Forgings Limited IPO
RHP of Paramount Speciality Forgings Limited IPO

Paramount Speciality Forgings Limited IPO Details:

Open Date: Sep 17 2024
Close Date: Sep 19 2024
Total Shares: 5,482,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 32.34 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 57 - 59 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 25 2024

Promoters And Management:

Aliasgar Roshan Hararwala, aged 45, holds a diploma in Business Entrepreneurship from Burhani Institute of Business Entrepreneurship (BIBE), earned in 1988. He has over 27 years of experience in the current business. As Managing Director, he plays a key role in driving the company’s performance, with a focus on quality improvement, safety initiatives, and operational efficiency. He also possesses expertise in ISO 9001, ISO 14001, and ISO 45001 Integrated Management Systems. Mohammed Salim Hararwala, aged 45 years, is a Director of their Company with over 25 years of experience in the current business. He holds a diploma in Computer Technology from the Maharashtra State Board of Technical Education, obtained in 1999. He oversees manufacturing operations, ensuring alignment with customer requirements and organizational objectives. With proficiency in ISO standards, he is responsible for process improvements, ERP implementation, and lean manufacturing initiatives. As a key member of the management team, he contributes to the Company’s operational and strategic direction. Aliasgar Abdulla Bhagat, aged 69 years, is a Director of their company with over 50 years of experience in forging and flange production. He has completed his Secondary School Certificate (SSC). He is responsible for client communication, strategic planning, and setting organizational goals.

Financials of Paramount Speciality Forgings Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 8,758 11,036 11,276
Other Income 485 188 88
Total Revenue 9,243 11,224 11,364
Cost of Materials consumed 6,093 8,367 7,405
Change in Inventories 4 -791 -502
Employees Benefit Expenses 530 629 728
Other Expenses 1,799 2,256 2,321
EBITDA 818 763 1,412
OPM (%) 8.85% 6.80% 12.42%
Depreciation & Amortisation 304 261 202
EBIT 514 501 1,209
Finance Cost 130 143 203
PBT 383 358 1,006
Tax 102 92 309
PAT 313 276 725
NPM (%) 3.39% 2.46% 6.38%
No.of Shares 196.82 196.82 196.82
EPS 1.59 1.40 3.68

Comparison With Peers:

Note :- There are no listed companies in India that are engaged in a business similar to this company.

Lead Manager of Paramount Speciality Forgings Limited IPO:

  1. Swaraj Shares and Securities Private Limited

Registrar of Paramount Speciality Forgings Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Paramount Speciality Forgings Limited 3, 1, Guru Himmat Building, Dr. Mascarenhas Road Anjirwadi Mazgaon, Mumbai - 400010 Phone: +91-22-23732656 Email: compliance@paramountforge.org Website: https://paramountforge.com/

Discussion on Paramount Speciality Forgings Limited IPO:

1 Comment

    In my view, an Offer for Sale (OFS) for an SME doesn’t quite align with the essence of the SME sector. Investors typically invest in SMEs with the expectation that these companies will grow and expand significantly over time. An OFS, in this case, may not present the most compelling opportunity. Therefore, I would recommend avoiding it.

    Reply

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