Paragon Fine and Speciality Chemicals IPO opens October 26, price band set at ₹95-100 apiece. Check GMP, other details

Paragon Fine and Speciality Chemicals is engaged in the production of highly complex and differentiated specialty chemical intermediates through custom synthesis. The company produces pigment intermediates, dye intermediates, pharma intermediates, AGRO intermediates, and cosmetic intermediates for a wide range of Indian and international clients.

The company’s manufacturing facility, which occupies about 7000 square metres and is outfitted with top-of-the-line reactors for conducting research in order to produce new goods, is situated in the Viramgam District of Ahmedabad, Gujarat.

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The company’s promoters are Vallabh Ratanji Savaliya, Rutesh Vallabhbhai Savalia, Shivam Kishorbhai Patolia, Vallabh Jasmat Vasolia, and Kishorkumar Panchabhai Patolia.

The shareholding pattern of the promoters and promoter group before the issue is 100%and after the issue is set at 73.60%.

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Paragon Fine IPO details

Paragon Fine And Speciality Chemicals IPO, which is worth ₹51.66 crore, is completely a fresh issue of 5,166,000 equity share; there is no offer for sale (OFS) component, according to Red Herring Prospectus (RHP).

The company wants to use the proceeds of the issue to fund the following projects: – finance capital expenditure for civil construction work in Gujarat; finance capital expenditure for work in the existing factory premises; Repay some of our outstanding debts in full or in part; fund capital expenditure for the installation of new equipment and machinery for expansion; fund for working capital needs; General Corporate Purpose.

The registrar for the Paragon Fine and Speciality Chemicals IPO is Bigshare Services Pvt Ltd, while the book running lead manager is Hem Securities Limited. Hem Finlease is the market maker for the Paragon Fine and Speciality Chemicals IPO.

Paragon Fine And Speciality Chemicals IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

As per the RHP, Paragon Fine IPO listed peers are Aether Industries Ltd (P/E of 100.04), Anupam Rasayan India Ltd (P/E of 48.41), Anupam Rasayan India Ltd (P/E of 24.16), and Deepak Nitrite Ltd (P/E of 31.94). 

Paragon Fine And Speciality Chemicals IPO GMP today

Paragon Fine IPO GMP today or grey market premium is +65. This indicates Paragon Fine share price were trading at a premium of ₹65 in the grey market on Tuesday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Paragon Fine share price was indicated at ₹165 apiece, which is 65% higher than the IPO price of ₹100.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 24 Oct 2023, 04:36 PM IST