About the Company:
Paramount Speciality Forgings Ltd is a manufacturer of steel forgings in India offering a diverse range of forged products.
Company has developed the business and scale of operations since its founding in 1996 and have invested in a variety of machinery to boost and diversify our manufacturing capabilities. Company can now manufacture and provide forged components ranging in weight from 1Kg to 4 metric tons in rough or finish-machined condition.
Company manufactures a range of forged products which include Tube Sheet Blanks, Forged Rings, Spacers , Girth Flanges, Tyre Rings, Self-reinforced nozzle, Long weld neck flanges, Seat, Valve’s body, Bonnet etc.
Company’s products are manufactured in accordance with National and International standards and is used in a wide range of industrial applications catering to the extensive requirements of Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering sectors.
Company has experience in catering to a wide range of customers due to our legacy of over three decades in the manufacturing businesses and have built long-standing relationships with customers across end-users in the Petrochemicals, Chemicals and Fertilizer, Oil and Gas, Nuclear, Power and other Heavy Engineering Industries.
Company’s Manufacturing Facilities:
Company owns and operates two manufacturing facilities located at Kamothe, Maharashtra spread over a built up area of 16,500 square feet and one located at Khalapur, Maharashtra spread over a built up area of 64,264 square feet.
Company’sClosed Die Forging Plant shop is equipped with two pneumatic air hammers 2T and 5T and a Drop Forge Hammer of capacity 1.5 MT that are capable of producing single piece forgings weighing up to 120 Kgs.
On the other hand, the Ring Rolling facility at the Khalapur Plant is equipped with an Automated 3,500T Hydraulic Blanking Press and a Radial Axial Ring Rolling Mill producing a variety of forgings and is capable of forging Seamless rolled rings up to a diameter of 3,500 mm, a height of up to 750mm and a weight of up to 5MT.
Company’s Total installed capacity and Capacity Utilization:
Company’s Production capacity:
Company’s Revenue From Domestic & Exports:
Competition in the Business:
Company faces competition from organized as well as unorganized players in domestic market as well as international market. The Industry is highly competitive and fragmented.
Company faces competition from Viraj Profiles Pvt Ltd, CHW Forge Pvt Ltd, Good Luck Engineering Co, Pradeep Metals Ltd, Western India Forgings and Metal Forgings Pvt Ltd etc.
Management Team:
- Mr. Aliasgar Roshan Hararwala (Designation: Managing Director)
- Mr. Aliasgar Abdulla Bhagat (Designation: Chairman and Executive Director)
Objectives of the Issue:
Offer For Sale: (Rs.4.01 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: ( Rs.28.33 cr)
- Capital expenditure through purchase of machinery and equipment required for expansion at our Khalapur Plant.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Capital expenditure through purchase of machinery and equipment required for expansion at our Khalapur Plant |
23.81 |
Peer Group Comparison:
There are no listed companies in India that engage in a business similar to that of Paramount Speciality Forgings Ltd Accordingly, it is not possible to provide an industry comparison in relation to the Company.
Positives for the Company:
Company Plans to Expand capacity at existing manufacturing facilities.
- Company proposes to purchase new machineries and equipment to build up additional capacity for our forging operations from the Net Offer Proceeds.
- The installation of new machinery and equipment will enable us to increase our production capacity, scale our operations, onboard new customers, better serve our existing customers, enable us to better address the business requirements of large customers, further improve our customer service and facilitate our growth strategy.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 92.43 | 112.24 | 113.63 |
| Net Profit | 3.13 | 2.75 | 7.25 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 17th September 2024 |
| Issue Closes on | 20th September 2024 |
| Issue Price | Rs.57 -59 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 Shares |
| Minimum Investment | Rs.1,18,000 |
| Issue Constitutes | 27.85 % |
| Issue Size | Rs.32.34 cr ($4 million ) |
| Market Cap | Rs.116.12 cr ($14 million ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 48,02,000 (Rs.28.33 cr) |
| Equity Shares Offered (OFS) | 6,80,000 (Rs.4.01 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 54,82,000 (Rs.32.34 cr) |
| Equity Shares Prior to the Issue | 1,48,80,000 |
| Equity Shares after the Issue | 1,98,82,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.87 | 12.11 | 31.65% | 13.24 |
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Important Dates:
| Finalization of Basis of Allotment | on or Before 23rd September 2024 |
| Initiation of Refunds | on or Before 24th September 2024 |
| Credit of Equity Shares: | on or Before 24th September 2024 |
| Listing Date: | on or Before 25th September 2024 |
| Company Contact Info: |
|---|
| Paramount Speciality Forgings Ltd 3, 1, Guru Himmat Building, Dr. Mascarenhas Road Anjirwadi, Mazgaon, Mumbai – 400010, Maharashtra, India. Contact Number: 91-22-2373 2656 Email: compliance@paramountforge.org website: www.paramountforge.com |
| Registrar to the Issue: |
|---|
| PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED 9, Shiv Shakti Industrial Estate, J. R. Boricha Marg, Lower Parel (East) Mumbai 400011, Maharashtra, India. Contact Number: +91 022 2301 8261; E-mail: support@purvashare.com Website: www.purvashare.com |
