In this article you get to know insight about Paragon Fine And Speciality Chemicals Limited IPO Details. Incorporated in 2004, this company specializes in custom synthesis and manufacturing of specialty chemical intermediates, which involve intricate and unique chemical processes. Their product range encompasses Pharma Intermediates, AGRO Intermediates, Cosmetics Intermediates, Pigment Intermediates, and Dye Intermediates, serving a diverse customer base in India and globally.
The company’s manufacturing facility, situated in the Viramgam District of Ahmedabad, Gujarat, spans approximately 7000 square meters and is equipped with state-of-the-art reactors to support research and the development of new products.
One of their notable strengths lies in their Research and Development (R&D) team, which has successfully conducted multi-step synthesis processes and introduced multiple new molecules in the specialty intermediates field. This effort has significantly expanded their product portfolio, offering around 140 distinct products as of Fiscal 2023. Their R&D team comprises 14 technocrats dedicated to ongoing research and development activities.
Key competitive strengths of the company include:
Wide Range of Customizable Products: The company offers a diverse array of customizable products to cater to the specific needs of their clients. This flexibility allows them to address a wide range of requirements.
Focus on R&D: Their commitment to research and development enables them to leverage complex chemistry and cutting-edge technology, keeping their product offerings at the forefront of innovation.
Long-Term Customer Relationships: They have established enduring relationships with customers from various nationalities, reflecting their dedication to customer satisfaction and international reach.
In-House Manufacturing Unit: Their in-house manufacturing unit is equipped with advanced technologies and processes, providing them with greater control over product quality and production efficiency.
The company’s leadership, including the Promoters and Senior Management, boasts extensive industry experience and substantial domain knowledge, further enhancing their position in the specialty chemical intermediates sector.
Objects of the Issue
The company has outlined a clear plan for the utilization of the proceeds from the Issue, which includes the following objectives:
Funding Capital Expenditure for Existing Premises: A portion of the funds raised will be allocated to support capital expenditure related to civil construction work within the existing factory premises. This investment likely aims to enhance or expand the current facilities and operations.
Capital Expenditure for New Facility: Another segment of the proceeds will be directed towards capital expenditure for civil construction work at Plot No 10/A, located at Survey No. 1359, 1360, Village-Viramgam, Taluka-Viramgam, District-Ahmedabad-382150, Gujarat. This suggests the company’s expansion or establishment of a new facility at this location.
Repayment of Borrowings: The company intends to use a portion of the funds to either fully or partially repay certain outstanding borrowings. This step aims to reduce debt obligations, potentially improving the company’s financial position and reducing interest costs.
Expansion of Plant and Machinery: Part of the proceeds will be dedicated to funding the installation of additional plant and machinery to facilitate expansion. This investment indicates a commitment to increasing production capacity or capabilities.
Working Capital Requirements: Ensuring smooth and uninterrupted operations is essential. A significant portion of the funds will be earmarked to address working capital needs, which is crucial for managing daily business operations, maintaining inventory levels, and fulfilling customer orders promptly.
General Corporate Purposes: Lastly, a portion of the proceeds will be allocated to general corporate purposes. This category typically includes a wide range of potential applications, such as strategic investments, research and development initiatives, exploring expansion opportunities, or any other activities that benefit the overall corporate interests.
This well-structured allocation of funds reflects the company’s focus on strategic growth, enhancing its infrastructure and operations, reducing debt, expanding production capabilities, and ensuring the smooth functioning of the business. It ultimately aims to benefit both the company and its investors.
Paragon Fine And Speciality Chemicals Limited IPO Details
| IPO Date | October 26, 2023 to October 30, 2023 |
| Face Value | ₹10 per share |
| Price | ₹95 to ₹100 per share |
| Lot Size | 1200 Shares |
| Total Issue Size | 5,166,000 shares (aggregating up to ₹51.66 Cr) |
| Fresh Issue | 5,166,000 shares (aggregating up to ₹51.66 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing | NSE SME |
| Share holding pre issue | 14,400,000 |
| Share holding post issue | |
| Market Maker portion | 261,600 shares |
Paragon Fine And Speciality Chemicals Limited IPO Reservation
QIB (Qualified Institutional Buyers) Shares Offered: The Qualified Institutional Buyers will receive no more than 50% of the Net Issue. QIBs are institutional investors who meet specific criteria and are considered well-versed in financial markets.
Retail Shares Offered: Retail investors will be offered at least 35% of the Net Issue. Retail investors are typically individual investors who purchase shares for personal investment purposes.
NII (Non-Institutional Investors, HNI) Shares Offered: Non-Institutional Investors (NII), including High Net Worth Individuals (HNI), will be offered no less than 15% of the Net Issue. These are investors who may not be institutions but have a substantial investment capacity.
Paragon Fine And Speciality Chemicals Limited IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1200 | ₹120,000 |
| Retail (Max) | 1 | 1200 | ₹120,000 |
| HNI (Min) | 2 | 2,400 | ₹240,000 |
Paragon Fine And Speciality Chemicals Limited IPO Promoter Holding
The company’s promoters are:
- Dr. Pravinchandra Jasmat Vasolia
- Kishorkumar Panchabhai Patolia
- Vallabh Ratanji Savaliya
- Rutesh Vallabhbhai Savalia
- Shivam Kishorbhai Patolia
As of the pre-issue shareholding, the promoters collectively hold 100% of the company’s shares. This indicates that prior to the issue, the entire ownership of the company is with the promoters.
Paragon Fine And Speciality Chemicals Limited IPO Tentative Dates
| IPO Open Date | Thursday, October 26, 2023 |
| IPO Close Date | Monday, October 30, 2023 |
| Basis of Allotment | Thursday, November 2, 2023 |
| Initiation of Refunds | Friday, November 3, 2023 |
| Credit of Shares to Demat | Monday, November 6, 2023 |
| Listing Date | Tuesday, November 7, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 30, 2023 |
Paragon Fine And Speciality Chemicals Limited IPO Registrar
For any inquiries or information related to the IPO, you can contact Bigshare Services Pvt Ltd using the following contact details:
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: Bigshare Services Pvt Ltd IPO Status
Feel free to reach out to them for any IPO-related queries or services.
FAQs
What does Paragon Fine And Speciality Chemicals Limited specialize in?
Paragon Fine And Speciality Chemicals Limited specializes in custom synthesis and manufacturing of specialty chemical intermediates, which include products like Pharma Intermediates, AGRO Intermediates, Cosmetics Intermediates, Pigment Intermediates, and Dye Intermediates.
Where is the company’s manufacturing facility located, and what are its key features?
The company’s manufacturing facility is situated in the Viramgam District of Ahmedabad, Gujarat, covering approximately 7000 square meters. It is equipped with state-of-the-art reactors to support research and the development of new products.
How many products does Paragon Fine And Speciality Chemicals Limited offer in its portfolio as of Fiscal 2023?
As of Fiscal 2023, the company offers around 140 distinct products in its portfolio.
What are the key competitive strengths of the company?
Paragon Fine And Speciality Chemicals Limited’s competitive strengths include a wide range of customizable products, a strong focus on research and development, long-term customer relationships, and an in-house manufacturing unit equipped with advanced technologies.
What are the objectives of the IPO?
The company plans to utilize the IPO proceeds for various purposes, including funding capital expenditure for existing premises, capital expenditure for a new facility, repayment of borrowings, expansion of plant and machinery, meeting working capital requirements, and general corporate purposes.
When is the Paragon Fine And Speciality Chemicals Limited IPO scheduled to take place?
The IPO is scheduled to be open for subscription from October 26, 2023, to October 30, 2023.
What is the face value of Paragon Fine And Speciality Chemicals Limited shares?
The face value of Paragon Fine And Speciality Chemicals Limited shares is ₹10 per share.
What is the price range for the IPO shares?
The IPO shares are priced in the range of ₹95 to ₹100 per share.
What is the lot size for the Paragon Fine And Speciality Chemicals Limited IPO?
The lot size for retail investors is 1200 shares, and for HNI (High Net Worth Individuals), it is 2400 shares.
How is the IPO issue structured in terms of share allocation?
The IPO is a Book Built Issue IPO, and the shares will be listed on NSE SME. The allocation includes Qualified Institutional Buyers (QIBs), retail investors, and Non-Institutional Investors (NII).
Who are the promoters of Paragon Fine And Speciality Chemicals Limited?
The company’s promoters are Dr. Pravinchandra Jasmat Vasolia, Kishorkumar Panchabhai Patolia, Vallabh Ratanji Savaliya, Rutesh Vallabhbhai Savalia, and Shivam Kishorbhai Patolia.
What are the tentative dates for the Paragon Fine And Speciality Chemicals Limited IPO process?
The IPO opens on Thursday, October 26, 2023, and closes on Monday, October 30, 2023. The listing date is Tuesday, November 7, 2023.
How can investors contact the IPO registrar for inquiries and information?
For inquiries related to the IPO, investors can contact the registrar, Bigshare Services Pvt Ltd, at +91-22-6263 8200 or via email at ipo@bigshareonline.com.