Paragon Fine And Speciality Chemicals IPO Opens Today: Know Date, GMP, Review, Allotment Date Here

The initial public offering (IPO) of Paragon Fine and Speciality Chemicals has opened for subscription today (Thursday). The 5-day Paragon Fine and Speciality Chemicals IPO will conclude on October 30, which will be the last day to place bids for the public issue. The price band of Paragon Fine and Speciality Chemicals IPO is Rs 95-100 per share.

According to market observers, Paragon Fine and Specialty Chemical Ltd IPO latest GMP is Rs 85.

Paragon Fine and Speciality Chemicals IPO subscription status:

The IPO of the Ahmedabad-based company received a healthy response from investors on day 1, i..e today, despite the market meltdown.

By the time of writing this story, the IPO Paragon Fine and Speciality Chemicals was subscribed 5.57 times with bids coming for 2.05 crore equity shares compared to the issue size of 36.96 lakh. Retail investors 9.09 times their allotted quota of shares and the portion reserved for high net worth individuals (HNIs) was booked 5.02 times. The shares allotted for qualified institutional investors (QIBs) were bought 1.3 times.

About the offer:

The IPO does not consist of an offer-for-sale (OFS) segment and consists of only a fresh issue component. Thus, the entire fresh issue proceeds, barring IPO expenses, will go to the company. The IPO is a book-built issue.
The company is looking to raise Rs 51.66 crore through the public issue of 51.66 lakh shares at the upper price band. Of the net issue proceeds, the company will utilize Rs 1 crore for civil construction work in the existing premises of the factory and Rs 7.87 crore for the installation of additional plant and machinery for expansion. Besides, Rs 12.90 crore will be used for debt repayment and the remaining funds will be used for working capital requirements and general corporate purposes.

Ahead of the IPO launch, the specialty, cosmetics, and pharma intermediate manufacturer mopped up Rs 14.7 crore from anchor investors on October 25. These investors who participated in the anchor book include Morgan Stanley, LC Radiance Fund VCC, MAIQ Growth Scheme, Nova Global Opportunities Fund, Finavenue Growth Fund and Subhkam Ventures.

Paragon Fine and Speciality Chemicals IPO Lot Size:

The net issue (excluding the market maker component) for the public stands at 4904400 shares, of which 50% of the portion is reserved for qualified institutional buyers (QIBs). The portion reserved for high-networth individuals (non-institutional investors) is 15%, while the remaining 35% quota is reserved for retail investors.

Retail investors can bid for a minimum of 1,200 equity shares in the offer, and in multiples of 1,200 shares thereafter. The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to Rs 2,40,000.

Paragon Fine and Speciality Chemicals IPO Important Dates:

The IPO of Paragon Fine And Speciality Chemicals will open on October 26 and will close on October 30.
The company is expected to finalize the basis of allotment of IPO shares by November 2 and the equity shares will be credited to demat accounts of eligible investors by November 6.

The Paragon Fine And Speciality Chemicals shares are expected to commence trading on the NSE Emerge on November 7.

About the company:

Established in 2004, Paragon Fine and Specialty Chemical Ltd is a Ahmedabad-based company that specializes in the custom manufacturing of Specialty Intermediates, Cosmetics Intermediates, Pharma Intermediates, and Agro Intermediates. the diverse range of products offered by the company finds applications across various industries, including Pharma, Medical devices, Electronics, Paper, Leather, Plastics, and Polymers.

When it comes to the company's financial performance, the net profit surged 120.3% on-year to Rs 9.89 crore for the year ended March FY23, while revenue from operations grew 23.5% to Rs 102.3 crore.
The EBITDA rose by 118.5% YoY to Rs 12.83 crore.

Paragon Fine and Specialty Chemical GMP:

According to IPO Watch, Paragon Fine and Specialty Chemical Ltd IPO latest GMP is Rs 85. With the price band of 100.00, Paragon Fine And Speciality Chemicals SME IPO's estimated listing price is Rs 185 (cap price + today's GMP), indicating an 85% premium on the listing day.