Paramount Dye Tec Shares Hit 5% Lower Circuit After Weak Listing
The Rs 28.43-crore public offer of Paramount Dye Tec was an entirely fresh issue of 24.3 lakh shares.
Shares of Paramount Dye Tec Ltd. listed at a discount of 6.4% on the NSE SME platform Emerge on Tuesday. The stock listed at Rs 109.90 apiece on the NSE over the IPO's upper price band of Rs 117.
Investors who bought one lot of 1,200 shares in the Paramount Dye Tec IPO would have incurred a loss of Rs 8,520 over an investment of Rs 1,40,400 at the time of listing.
The stock further slipped to hit a 5% lower circuit at Rs 104.40 apiece on the NSE.
Paramount Dye Tec IPO GMP
Ahead of the listing, the grey market premium or GMP of Paramount Dye Tec IPO was Rs 5, meaning a 4.27% premium over the issue price. According to InvestorGain, the projected listing price of the initial public offering of Paramount Dye Tec was Rs 122 apiece.
The GMP of an IPO is not the official listing price of the stock and is based on speculations.
Paramount Dye Tec IPO Details
Paramount Dye Tec IPO saw a strong demand from investors, led by non-institutional investors. The issue was subscribed 50.16 times over the three days of bidding. The IPO was booked 135.66 times in the non-institutional investors category. Retail investors subscribed their portion by 36.26 times, while qualified institutional buyers subscribed their quota by 10.21 times.
The Rs 28.43-crore public offer of Paramount Dye Tec was an entirely fresh issue of 24.3 lakh shares, with the price band set between Rs 111 to Rs 117 per share.
The initial share sale opened on Sept. 30 and closed on Oct. 3. Share allotment for bidders was finalised on Oct. 4. BigShare Services Pvt. was the registrar for the issue.
Paramount Dye Tec IPO: Use Of Funds And Proceeds
Paramount Dye Tec plans to set up a new manufacturing plant with the funds received from the IPO. The proceeds will be further used for registration of land bought from promoters. The remaining portion will be used to settle debts and for general corporate purposes.
About Paramount Dye Tec Ltd.
Paramount Dye Tec Ltd. is involved in recycling waste synthetic fibre into yarn. The company’s product portfolio includes synthetic fibre, and yarn like acrylic, polyester, nylon, wool, hand-knitting and acrylic blend yarns.
Founded in 2014, Paramount Dye Tec caters to the B2B segment. It has two manufacturing units in Punjab.
