Paramesu Biotech Ltd. has applied with the markets regulator for the maiden public issue of shares amounting to Rs 600 crore. The initial public offering consists of a fresh issue of shares worth up to Rs 520 crore and an offer for sale of shares worth Rs 80 crore, according to the draft red herring prospectus submitted to the Securities and Exchange Board of India. The face value is Rs 5 per share.
Unimark Business Solutions Pvt. is the sole promoter offloading shares each via the OFS route. It holds 82.01% equity in the company.
The proceeds from the fresh issue to the extent of Rs 330 crore will be used for funding capex requirement for setting up of new plant of 1,200 tonnes per day at a proposed facility in Narmadapuram in Madhya Pradesh. The rest Rs 85 crore will be deployed to pare debt.
The Paramesu Biotech IPO will be managed by Pantomath Capital Advisors Pvt. and Bigshare Services Pvt.
Andhra Pradesh-based Paramesu Biotech offers a diversified portfolio of maize based speciality products including native maize starch, modified maize starches, liquid glucose, maltodextrin powder, and co-products like germs, gluten, fiber, corn steep liquour and enriched fibre, among others, according to the DRHP.
The company currently operates a production unit in Andhra Pradesh's West Godavari District at Devarapalli. Its products are sold in 14 states and four union territories, and have exported our products to over 10 countries across South East Asia and Middle East.
Paramesu Biotech plans to manufacture products such as native starch and co-products such as germ, gluten, fibre, and corn steep liquor at its proposed facility at Madhya Pradesh. Post expansion, the aggregate installed capacity would be 2,000 tonnes per day.
The company reported revenue from operations of Rs 627 crore and net profit of Rs 40 crore in financial year 2024. Domestic sales accounted for 78.75% of the income, compared to 21.25% share of exports. Operating margin was 12.19%.
As on Sept. 30, 2024, the aggregated outstanding borrowings amounted to Rs 216 crore.
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