Paragon Fine and Speciality Chemical Ltd IPO Timeline

Paragon Fine and Speciality Chemical Ltd IPO opens on 26-Oct-2023, and closes on 30-Oct-2023. The Paragon Fine and Speciality Chemical Ltd IPO bid date is from 26-Oct-2023 to 30-Oct-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Paragon Fine and Speciality Chemical Ltd IPO Opening Date 26-Oct-2023
Paragon Fine and Speciality Chemical Ltd IPO Closing Date 30-Oct-2023
Basis of Allotment 02-Nov-2023
Initiation of Refunds 03-Nov-2023
Credit of Shares to Demat 06-Nov-2023
Paragon Fine and Speciality Chemical Ltd IPO Listing Date 03-Nov-2023

Paragon Fine and Speciality Chemical Ltd IPO Lot Size

Paragon Fine and Speciality Chemical Ltd IPO lot size is 1200 shares. A retail-individual investor can apply for up to 1 lots (1200 shares or 120000).

Application Lots Shares Amount
Minimum 1 1200 ₹120000
Maximum 1 1200 ₹120000

Paragon Fine and Speciality Chemical Ltd IPO Details

Paragon Fine and Speciality Chemical Ltd IPO Date 26-Oct-2023 to 30-Oct-2023
Paragon Fine and Speciality Chemical Ltd IPO Face Value Shares of ₹10 per share
Paragon Fine and Speciality Chemical Ltd IPO Price ₹95 to ₹100 per share
Paragon Fine and Speciality Chemical Ltd IPO Lot Size 1200
Issue Size Shares of ₹10 (aggregating up to ₹51.66 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹51.66 Cr)
Offer for Sale -
Issue Type Book Building - SME
Listing At NSE - SME
QIB Shares Offered -
Retail Shares Offered -
NII (HNI) Shares Offered -
Company Promoters Pravinchandra Jasmat Vasolia, Kishorekumar Panchabhai Patoli, Vallabh Ratanji Savaliya.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Funding capital expenditure towards civil construction work in the existing premises of factory
  • 2 Repayment in full or in part of certain of its outstanding borrowings
  • 3 Funding capital expenditure towards installation of additional plant and machinery for expansion
  • 4 Funding to meet working capital requirements
  • 5 General corporate purposes

Company Financials

Paragon Fine and Speciality Chemical Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2023 70.98 105.01 9.89
03-2022 57.51 84.58 4.49
03-2021 49.83 84.37 4.40
Amount in ₹ Crore
  • Wide range of products with ability to customize.
  • Focus on R&D to leverage complex chemistry and technology.
  • Long standing relationships with diversified customers across geographies.
  • In-house manufacturing facility with equipped technologies and systems.
  • Experienced and Qualified Management and Employee base.
  • Focus on Quality, Environment, Health and Safety.
  • Strong and Consistent Financial Performance.
  • Experienced Promoters and Senior Management with extensive domain knowledge.
  • The company operations are dependent on its R&D capabilities and an inability to continue to design complex chemistries may adversely affect the company business.
  • The company's business is dependent and will continue to dependa on its manufacturing facilities, and the company is subject to certain risks in the manufacturing process. Any slowdown or shutdown in the manufacturing operations or strikes, work stoppages or increased wage demands by the company employees that could interfere with its operations could have an adverse effect on the business, financial condition and results of operations.
  • The company is subject to certain risks consequent to its operations involving the manufacture, usage and storage of various hazardous substances.
  • The company derives a significant part of its revenue from major customers and the company do not have long term contracts with all of these customers. If one or more of such customers choose not to source their requirements from it or to terminate its long-term contracts, the company business, financial position and results of operations may be adversely affected.
  • The company reliance on certain industries for a significant portion of its sales could have an adverse effect on the business.
  • The company does not hold patents for any of its processes and the trademark application for the company logo is opposed. There might be insufficient protection for its intellectual property rights, potentially leading to significant negative impact on the business and results of operations.
  • The company derives a majority portion of its revenues from exports and are subject to risk of international trade.
  • Exchange rate fluctuations may adversely affect the company results of operations as its sales from exports and a portion of the company expenditures are denominated in foreign currencies.
  • The names of the company Promoter and Whole Time Director, Kishorkumar Panchabhai Patolia and its Non-Executive Director, Dr. Soumitra Sachipati Banerjee were appearing in the list of disqualified directors in the past.
  • The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the quality controls and standards. Any failure to comply with quality standards may adversely affect the company business prospects and financial performance, including cancellation of existing and future orders.
  • Inventories and trade receivables form a major part of the company current assets. Failure to manage its inventory and trade receivables could have an adverse effect on the sales, profitability, cash flow and liquidity.
  • The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.
  • The company is subject to increasingly stringent environmental, health and safety laws, regulations and standards. Noncompliance with and adverse changes in health, safety, labour, and environmental laws and other similar regulations to its manufacturing operations may adversely affect of the business, results of operations and financial condition.
  • Any adverse changes in regulations governing the company business, products and the products of its customers, may adversely impact of the business, prospects and results of operations.
  • There are certain discrepancies/errors noticed in some of the company corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/ 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
  • The company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on the company business, financial condition and results of operations.
  • The company face competition from both domestic as well as multinational corporations and its inability to compete effectively may have a material adverse impact on the business, financial condition and results of operations.
  • The company manufacturing facility is located in Gujarat exposing it to regulatory and other geography specific risks such as labour unrests, terrorist attacks, other acts of violence and occurrence of natural and man-made disasters.
  • The Company operates under several statutory and regulatory approvals in respect of its operations. Failure to obtain or maintain licenses, registrations, permits and approvals may affect the company business and results of operations.
  • If the company is unable to manage its growth effectively and further expand into new markets of the business, future financial performance and results of operations could be materially and adversely affected.
  • The company investments in new products may not be successful and may be less profitable or may be loss-making.
  • The Company may not be successful in penetrating new export markets.
  • The cost of implementing new technologies for the company operations could be significant and could adversely affect its business, financial condition and results of operations.
  • The company insurance coverage may not be adequate to protect it against all potential losses to which we may be subject and this may have a material effect on its business and financial condition.
  • The Company is involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render us/ them liable to liabilities/ penalties/ prosecutions and may adversely affect its business and results of operations.
  • The company is dependent on third party transportation providers for the delivery of its raw material and products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may have an adverse effect on the company business, financial condition, results of operations and prospects.
  • The company has significant working capital requirements. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect of the business, cash flows and results of operations.
  • Activities involving the company manufacturing process can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect the company production schedules, costs, sales and ability to meet customer demand.
  • The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
  • Some of the company Promoter Group Entities are engaged in similar line of business. Any conflict of interest in future may occur between its promoter group entities and it may adversely affect the company business, prospects, results of operations and financial condition.
  • The company is dependent on its promoter and senior management and other key personnel, and the loss of, or the company inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.
  • The Company has taken unsecured loans that may be recalled by the lenders at any time.
  • The company is subject to risks arising from interest rate fluctuations, which could reduce its profitability and adversely affect the company business, financial condition and results of operations.
  • The company lenders have charge over its immovable and movable properties in respect of finance availed by it.
  • Under-utilization of the company manufacturing capacities may have an adverse effect on its business, future prospectus and future financial performance. Moreover, information relating to capacity utilization of the company production facility included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
  • The Objects of the Issue for which funds are being raised, are based on the company management estimates and have not been appraised by any bank or financial institution or any independent agency.
  • Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
  • Industry information included in this Draft Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
  • The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
  • The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
  • Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
  • The company ability to pay any dividends will depend upon future earnings, financial condition, cash flows and working capital requirements.
  • There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
  • Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on the company business, results of operation or financial condition.
  • The company Promoters have extended personal guarantee in the loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations and thereby, impact its business and operations.
  • Excessive dependence on Yes Bank Limited in respect of Loan facilities obtained by the Company.
  • The company is subject to certain restrictive covenants in debt facilities provided to it by its lenders.
  • The average cost of acquisition of Equity Shares by the Promoters is lower than the face value of Equity Share.
  • The company Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
  • The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of the company Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by it.
  • The Issue price of the company Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • Certain data mentioned in this Draft Red Herring Prospectus has not been independently verified.
  • QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.
  • Continue to focus on manufacturing by expanding its product portfolio and processes.
  • Capitalize on upward trend of chemical industry and government policy initiatives in the sector.
  • Continue to reduce operating costs and improve operational efficiencies.
  • Continue to strengthen its presence in India and expand its sales and distribution network in international markets.

Paragon Fine and Speciality Chemical Ltd IPO Promoter Holding

Pre Issue Share Holding 88.00%
Post Issue Share Holding 64.77%

Paragon Fine and Speciality Chemical Ltd IPO Subscription Status (Bidding Detail)

The Paragon Fine and Speciality Chemical Ltd IPO is subscribed - times on Oct 30, 2023 05:00:00 PM. The public issue subscribed - times in the retail category, - times in the QIB category, and - times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) - - - - -

Paragon Fine and Speciality Chemical Ltd IPO Prospectus

Paragon Fine and Speciality Chemical Ltd IPO Listing Date

Listing Date 03 Nov 23
BSE Script 91901
NSE Symbol PARAGON
Listing In NSE - SME
ISIN INE0N4G01012
IPO Price ₹100
Face Value ₹10

Paragon Fine and Speciality Chemical Ltd IPO Registrar

Bigshare Services Pvt Ltd

Phone: +91 022 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com

Paragon Fine and Speciality Chemical Ltd IPO Lead Manager(s)

  1. Hem Securities Ltd

FAQs on Paragon Fine and Speciality Chemical Ltd IPO

Paragon Fine and Speciality Chemical Ltd IPO, which opens for subscription from 26-Oct-2023 to 30-Oct-2023 has an issue size of ₹51.66 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Paragon Fine and Speciality Chemical Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Paragon Fine and Speciality Chemical Ltd IPO Opens for subscription from 26-Oct-2023 to 30-Oct-2023.

The lot size of Paragon Fine and Speciality Chemical Ltd is 1200 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹120000 and ₹120000 respectively.

Allotment date for Paragon Fine and Speciality Chemical Ltd is 02-Nov-2023 and refund of application amount (in case allotment is not received) will begin from 03-Nov-2023. If your allotment goes through, then shares will be credited in your Demat account by 06-Nov-2023.

The registrar for Paragon Fine and Speciality Chemical Ltd IPO is Bigshare Services Pvt Ltd . You can check your IPO allotment status on the registrar's website.

The shares of Paragon Fine and Speciality Chemical Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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