Paramesu Biotech files draft papers to raise Rs 600 crore via IPO

Andhra Pradesh-based DRHP states that Paramesu Biotech provides a wide range of speciality products derived from maize, such as modified and native maize starches, liquid glucose, maltodextrin powder, and co-products like fibre, gluten, germs, corn steep liqueur, and enriched fibre. Currently, the business runs a production facility in Devarapalli, in the West Godavari District of Andhra Pradesh. In addition to exporting to more than ten countries in Southeast Asia and the Middle East, its products are sold in 14 states and four union territories. The proposed facility in Madhya Pradesh will be used by Paramesu Biotech to produce native starch and co-products like fibre, gluten, germ, and corn steep liquor. The total installed capacity after expansion would be 2,000 tonnes per day.

For an IPO, Paramesu Biotech Ltd. applied

The market regulator has received an application from Paramesu Biotech Ltd. for the first public offering of shares worth Rs 600 crore. The Securities and Exchange Board of India received the draft red herring prospectus, which states that the IPO will include a new issue of shares up to Rs 520 crore and an offer to sell shares worth Rs 80 crore. Each share has a face value of Rs 5. The only promoter, Unimark Business Solutions Pvt., sells each share through the OFS process. Its ownership stake in the business is 82.01%.

Paramesu Biotech Ltd. plant capacity

A new plant with a capacity of 1,200 metric tons per day will be established at a proposed facility in Narmadapuram, Madhya Pradesh, using the Rs 330 crore in proceeds from the new issue. To reduce debt, the remaining Rs 85 crore will be used.

Revenue from Paramesu Biotech Ltd

In the fiscal year 2024, the company reported operating revenue of Rs 627 crore and net profit of Rs 40 crore. Exports made up 21.25% of the revenue, while domestic sales made up 78.75%. It had an operating margin of 12.19%. The total amount of outstanding borrowings as of September 30, 2024, was Rs 216 crore.

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