Paramount Cables Shares Hit Upper Circuit On Change In Directorate & Hike In Authorised Share Capital

The NSE opened Paramount Communications' shares on Tuesday at a 5% upper circuit limit of Rs 86.60 a share. the upward trend in the stock price after the company's announcement of an increase in authorised share capital and directorship changes.

The company said in a stock exchange filing that Board at its meeting held on December 18, 2023 has approved "To increase the authorized share capital of the company from Rs. 70,00,00,000 (Rupees Seventy Crores only) divided into 30,00,00,000 equity shares of Rs. 2/- each and 10,00,000 Redeemable Preference Shares of Rs. 100/- each to Rs. 80,00,00,000 (Rupees Eighty Crores only) divided into 35,00,00,000 equity shares of Rs. 2/- each and 10,00,000 Redeemable Preference Shares of Rs. 100/- each."

The company said the Board also approved "To issue and allot, subject to the approval of the shareholders of the Company, a maximum of upto 2,25,24,980 equity shares of the Company of face value Rs. 2/- each at a price of Rs. 66.50/-."

Subject to the consent of the shareholders, the Paramount Communications Board of Directors authorized the appointment of Mr. Harish Pal Kumar (DIN No. 01826010) as an Additional Director in the category of Independent Director for a term of five years beginning on December 18, 2023. Additionally, the firm accepted Mr. Narendra Kumar Goyal's appointment as an Additional Director under the Independent Director category, effective December 18, 2023, for a tenure of five years.

According to a filing with the market, Paramount Communications, the cable producer, recorded a 55% YoY rise in net profit to Rs 19.49 crore in the September 2023 quarter from a net profit of 12.62 crore in the same quarter the previous year. In the second quarter of the current financial year, revenue from operations climbed 18% YoY to Rs 254.42 crore from Rs 215.68 crore in Q2FY23. EBITDA for Q2FY24 increased by around 50% to Rs 21 crore, and the quarter ended in September 2023 saw an operating profit margin of 8%.

Among India's top producers of wire and cables is Paramount Communications Ltd., a division of the Paramount Cables Group.

The company has been in business for more than 60 years, and during its existence, it has amassed a portfolio that includes a wide range of products such as HV and LV power cables, optical fiber cables and other telecom cables, railway cables, specialized cables, instrumentation and data cables, and fire survival cables.

Government, institutional, and large national and international companies in the power, telecom, railways, information technology and communication, construction, defense, and space research sectors are just a few of Paramount Cables' esteemed customers.