Paramount Dye Tec IPO

Paramount Dye Tec Limited, a company specialising in producing recycled synthetic yarns for the B2B textile sector, is launching its IPO. The Paramount Dye Tec IPO is a book-built issue worth ₹28.43 crores, consisting entirely of a fresh issue of 24.3 lakh shares. 

It will be open for subscription from September 30, 2024, to October 3, 2024. The IPO allotment is expected to be finalised on October 4, 2024, and the shares will list on NSE SME on October 8, 2024. The IPO price band is set between ₹111 and ₹117 per share. Investors can apply with a minimum lot size of 1,200 shares, requiring a minimum investment of ₹1,40,400 for retail investors. 

High Net Worth Investors (HNIs) need to apply for at least two lots, amounting to ₹2,80,800. Gretex Corporate Services Limited is the lead manager for the issue, with Bigshare Services Pvt Ltd acting as the registrar. Gretex Share Broking is the market maker for the IPO.

Industry Outlook:

1. The global spinning machinery market is projected to grow at a CAGR of 4.6% from 2022 to 2027, driven by innovations and increased demand for textile products across sectors like fashion and automotive. 
2. India's textile and apparel industry is forecasted to grow at a 10% CAGR, reaching US$ 350 billion by 2030. As the industry expands, Paramount Dye Tec is well-positioned to capitalise on this growth due to its focus on recycled yarn production and sustainable practices.

Paramount Dye Tec IPO Objectives 

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. A portion of the funds will be utilised to establish a new manufacturing unit.
2. A portion of the funds will be used to repay or prepay certain debt facilities, reducing the company's financial liabilities.
3. The company will allocate funds to cover expenses related to the registration of land purchased from the promoter.
4. The remaining funds will be allocated towards general corporate purposes.

About Paramount Dye Tec Limited 

Paramount Dye Tec Limited (PDTL) is a Ludhiana-based company specialising in the manufacturing of yarns by recycling synthetic waste fibres. Serving the B2B segment of the textile industry, PDTL produces a range of yarns, including acrylic, polyester, nylon, wool, hand-knitting, and acrylic blend yarns. This process supports sustainability while meeting industry demand for high-quality yarn.

PDTL’s facility, located in Punjab, is equipped with advanced technology and staffed by industry experts. By focusing on recycling pre-consumer synthetic waste, the company transforms waste fibres into premium yarn, contributing to the circular fashion movement.

Certified with ISO 9001:2015 and Good Manufacturing Practice (GMP), PDTL adheres to strict quality standards. Their mission is to lead in recycling synthetic fibres, aiming to produce yarns comparable to virgin fibres, ensuring consistent quality and cost-efficiency.

PDTL’s continuous investment in machinery upgrades allows the company to expand its product range, catering to both winter and summer apparel manufacturers. This strategic move is designed to mitigate seasonality risks and build a stable revenue base, serving a wide range of customers, from SMEs to multinational fashion companies.

Peer Details

Since the performance data of Paramount Dye Tec Limited is available only for 3 months, it cannot be compared to other listed peers in the industry.

How To Check the Allotment Status of the Paramount Dye Tec Limited IPO?

A: Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for Paramount Dye Tec IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Paramount Dye Tec IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Paramount Dye Tec IPO 

Registered office: Village Mangarh, Machiwara Road, Kohara, Ludhiana - 141112, Punjab, India

Phone:  +91-9056855519

E-mail: info@paramountdyetec.com

Financial Performance of Paramount Dye Tec Limited

Know before investing

Strengths

1. Paramount Dye Tec Limited excels in recycling synthetic waste into yarn.

2. Innovative technology turns waste into high-quality, cost-effective fibre.

3. Cost-efficient production methods provide a significant margin advantage.

4. Custom yarn solutions cater to diverse customer needs and applications.

5. Expanded spinning capacity optimises production and boosts profitability.

6. Tailored fibre and yarn solutions enhance client satisfaction and market reach.

Risks

1. Regulatory compliance increases operational costs, potentially affecting profitability and operations

2. Heavy reliance on fibre and yarn manufacturing increases business vulnerability.

3. Shutdown of manufacturing facilities could severely impact operations and cash flow.

4. Geographic concentration in Punjab exposes business to regional economic risks.

5. Intense competition from organised and unorganised players strains profit margins.

6. Dependence on top customers and suppliers increases the risks of revenue loss.