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Paragon Fine and Speciality Chemicals, a producer of specialty chemical intermediates, saw a robust debut on the NSE SME platform today, with its initial public offering (IPO) surging 125% from the issue price of ₹95 to ₹100 per share, opening at ₹225. The IPO was available for bidding from October 26-30 and was oversubscribed by a factor of 205, raising a total of ₹51.66 crore.
The firm issued over five million new equity shares as part of its IPO, as detailed in the Red Herring Prospectus (RHP). The shares were divided among different categories of investors: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors. Each investor was required to bid for at least 1200 shares.
The raised capital will be used to fund numerous strategic initiatives including debt repayment, civil construction in Gujarat, business expansion, and investing in new machinery for their Ahmedabad factory. The company also plans to allocate some funds towards reducing its debt of ₹12.90 crore and boosting working capital.
Paragon has demonstrated strong financial performance recently. In FY23, it reported a net profit of ₹9.89 crore, marking a significant increase of 120.3 percent. Additionally, the company’s revenue grew by 23.5 percent to reach ₹102.3 crore, while EBITDA expanded by 118.5 percent to ₹12.83 crore. For the June quarter, the firm posted a profit of ₹3.62 crore on revenue of ₹28.8 crore.
Promoter Vallabh Ratanji Savaliya has been instrumental in guiding Paragon’s growth trajectory, along with other promoters like Pravinchandra Jasmat Vasolia. Anchor investors for the IPO included Morgan Stanley and Finavenue Growth Fund.
The IPO was managed by Hem Securities, while Bigshare Services acted as the registrar and Hem Finlease served as the market-maker.
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