Paramount Dye Tec IPO Subscribed Nearly 50 Times So Far On Day Three; Check GMP Here

The initial public offering of Paramount Dye Tec Ltd. has been subscribed nearly 50 times so far on Thursday, its final day of bidding. The SME IPO was subscribed 1.51 times on Tuesday and 0.42 times on Monday.

The SME IPO is an entirely fresh issue of 24.3 lakh shares amounting to Rs 28.43 crore. The allotment of shares is set to be finalised on October 4.

Credit of shares to the demat accounts of successful bidders along with initiation of refunds for non-allottees will take place on October 7. Paramount Dye Tec IPO shares will be listed on the NSE SME platform, tentatively on October 8.

The price band for the Paramount Dye Tec IPO is set in the range of Rs 111 to Rs 117 per share. Retail investors can bid in the IPO with a minimum lot size of 1,200 shares, requiring an investment of Rs 1,40,400.

The company has appointed Bigshare Services Pvt. as the registrar, while Gretex Corporate Services Ltd. is the book-running lead manager for the issue. Gretex Share Broking Ltd. is the market maker for the offering.

The IPO has been subscribed 48.06 times as of 3:57 p.m. on Thursday.

• Qualified Institutions: 10.22 times

• Non-institutional investors: 135.13 times

• Retail investors: 32.29 times

The grey market premium of Paramount Dye Tec is Rs 5 as of 2:54 p.m. on October 3, implying a 4.27% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 122 per share.

GMP is not an official price quote for the stock and is based on speculation. 

Paramount Dye Tec plans to use the funds raised from the IPO to set up a new manufacturing unit and settle debts. The funds will be used by the company to cover expenses related to the registration of land purchased from the promoter. A portion of the money will be directed towards general corporate purposes.

Paramount Dye Tec recycles waste synthetic fibre to produce yarns for the B2B textile industry. Its product range includes acrylic, polyester, nylon, and blended yarns. Incorporated in 2014, the company has two manufacturing units in Punjab.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.