Off to a flier, Paragon Fine and Speciality Chemical sells at a 125% premium above the issue price

 Off to a flier, Paragon Fine and Speciality Chemical sells at a 125% premium above the issue price

On the NSE SME platform, Paragon Fine and Speciality Chemical shares started at Rs 225, up from the Rs 100 IPO price.

By 113.75 percent from the IPO price, Paragon Fine and Speciality Chemical's shares was trading at Rs 213.75, as of 10:35 AM.

In November 3, Paragon Fine and Speciality Chemical had a spectacular debut by listing at a price that was 125 percent higher than the IPO price. On the NSE SME platform, the stock opened at Rs 225 compared to the issue price of Rs 100.

The stock was selling at Rs 213.75, up 113.75% from the offer price, as of 10.35 am. 205 people subscribed to the initial public offering (IPO), which was available for purchase from October 26 to October 30.  The offer's price range was Rs 95–100 per share.

Through the IPO, which included the new issuance of 51.66 lakh shares, the business was able to raise Rs 51.66 crore. The business intends to utilize the money raised to pay for new equipment and plants as well as building work to be done at its Ahmedabad facility.

Additionally, the small and medium-sized businesses plan to utilize the cash to satisfy their working capital needs and reduce their debt by Rs 12.90 crore.

The Ahmedabad-based intermediate manufacturer of specialized products, cosmetics, and pharmaceuticals attracted Rs 14.7 crore from anchor investors, including Finavenue Growth Fund, Morgan Stanley, MAIQ Growth Scheme, LC Radiance Fund VCC, as well as Nova Global Opportunities Fund.

The company's promoters are Vallabh Ratanji Savaliya, Rutesh Vallabhbhai Savalia, Pravinchandra Jasmat Vasolia, Kishorkumar Panchabhai Patolia, as well as Shivam Kishorbhai Patolia. Hem Securities served as the issue's book-running lead manager, Bigshare Services as the registrar, as well as Hem Finlease as the market maker.

The company's sales increased by 23.5 percent to Rs 102.3 crore in FY 23, while its net profit increased by 120.3 percent year over year to Rs 9.89 crore. Operating performance was the primary driver of profitability, as seen by the EBITDA (profits before interest, tax, depreciation, and amortisation) rising by 118.5 percent year over year to Rs 12.83 crore. To reach 12.54 percent, the gap increased by 545 basis points.

The business recorded a profit of Rs 3.62 crore on sales of Rs 28.8 crore during the June quarter.