Paramount Dye Tec IPO Fully Subscribed On Day Two; Check GMP And Other Details

The initial public offering of Paramount Dye Tec Ltd. was fully subscribed on Tuesday, its second day of bidding. The SME IPO was subscribed 0.42 times on its opening day on Monday.

The book-building offer is an entirely fresh issue of 24.3 lakh shares amounting to Rs 28.43 crore. The subscription window for the IPO will be open till October 3. 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 1.16 times as of 3:37 p.m. on Tuesday.

• Qualified Institutions: nil

• Non-institutional investors: 0.24 times

• Retail investors: 2.21 times

The grey market premium for the Paramount Dye Tec IPO is nil as of 2:31 p.m. on October 1.

Investors must note the GMP is highly speculative and is not an official listing price of a stock.

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.