Shares of Paramount Dye Tec made a dismal start on its stock market debut at the bourses on October 7 after listing at Rs 109.9, a discount of 6 percent over the issue price of Rs 117 per share on the NSE SME platform.
The 28.4-crore public offer, which is a fresh issue of 24.3 lakh shares, received robust investor interest after the issue was subscribed 50 times over three days. Non-institutional investors led comfortably, buying over 135 times the portion reserved for them.
Retail investors followed next, buying 36.26 times the portion reserved for them. QIBs or qualified institutional buyers mopped up 10.2 times their allotted quota. Paramount Dye Tec IPO raised Rs 8.09 crore from anchor investors. The price band of the issue was set at Rs 111-117.
Founded in 2014, Paramount Dye Tec Limited produces yarns by recycling waste synthetic fiber, serving the B2B segment of the textile industry. The company offers a diverse range of products, including synthetic fiber and yarns such as acrylic, polyester, nylon, wool, hand-knitting, and acrylic blend yarns, known for their quality and durability. Paramount Dye Tec operates two manufacturing facilities in Village Mangarh and Village Koom Khurd, Punjab.
The company plans to use the net fresh issue proceeds for setting up a new manufacturing unit, repaying or prepaying certain debt facilities, covering expenses for land registration purchased from the promoter, and general corporate purposes.
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