Paramount Syntex DRHP Filed for BSE SME Listing: Fresh Issue of up to 65 Lakh Shares

Mumbai | Friday, October 3, 2025: Paramount Syntex Limited has filed its draft papers for an initial public offering (IPO) on the BSE SME platform. The IPO is a 100% fresh issue of up to 65,00,000 equity shares with a face value of ₹10 each, with no Offer for Sale (OFS) component. The issue aims to raise funds to support the company’s working capital requirements and business development plans.

Sobhagya Capital Options Pvt Ltd has been appointed as the Book Running Lead Manager (BRLM), while Bigshare Services Pvt Ltd will act as the registrar. Details regarding the issue price, opening, and closing dates are yet to be announced.

Paramount Syntex was established as a company in 1996 and was converted into a public company in July 2024. It manufactures synthetic fibers and different grades of yarns by the use of systematic production processes for procuring raw materials, followed by cleaning, drying, blending, spinning, winding, and quality control. In-house R&D facilities, as well as production facilities for acrylic fiber using waste fiber, are available. Facilities at Village Mangarh, Machiwara Road, Kohara, Ludhiana, Punjab. Its registered office is at Mumbai. Promoters are Punit Arora and Kumkum Arora.

Paramount Syntex IPO Objects of the Issue

The proceeds from the IPO are proposed to be utilised for the following purposes:

• Plant and machinery and installation: ₹5,712.33 lakh
• General corporate purposes: Balance within regulatory limits

The draft prospectus also includes vendor quotations and a Detailed Project Report (DPR) for the planned capital expenditure. However, some machinery orders are currently on hold pending placement, which has been flagged as an implementation risk.

Paramount Syntex IPO Promoters and Shareholding

• Promoters: Kumkum Arora and Punit Arora
• Pre-issue holding: 91.74% of the company’s total pre-issue paid-up equity share capital is held by the promoters.
• Post-issue shareholding: Will depend on the final issue size and the issue price as determined in the Red Herring Prospectus (RHP).

Paramount Syntex IPO Lead Manager and Registrar

• Book Running Lead Manager: Sobhagya Capital Options Pvt Ltd
• Registrar: Bigshare Services Pvt Ltd
• Listed on Exchanges on: BSE SME.

Company Strengths

Paramount Syntex operates integrated processes across dyeing, spinning, and fiber treatment, supported by in-house R&D and ISO certifications (ISO 9001, ISO 45001, and ISO 14001), ensuring stringent process control and quality assurance. The company witnessed margin expansion in FY24 and improved profitability in FY25, with higher EBITDA and PAT. Its Ludhiana production facility supports a diverse range of textile applications, including apparel and home textiles.

Paramount Syntex IPO Key Risks to Watch

The company faces implementation risk in its capex programme, as orders for several planned machinery items are yet to be completed, which could affect both schedule and costs. Leverage and cash flow considerations include borrowings, the variability of operating cash flows as reflected in the restated financial statements, and the working-capital-intensive nature of the industry. The DRHP also highlights compliance and documentation aspects, noting gaps in very old records that rely on supporting documents, along with regular tax and statutory obligations. However, no SEBI or stock exchange disciplinary proceedings were reported at the time of filing.

The price band, lot size, and bidding schedule will be disclosed in the Red Herring Prospectus (RHP). The company’s shares will be listed on the BSE SME platform. Investors are expected to monitor further developments, including the final issue timetable and valuation, following the release of the RHP and the commencement of marketing activities in consultation with the Book Running Lead Manager (BRLM).

REF: https://www.bsesme.com/download/395143/SME_IPO InPrinciple/ParamountDRHP30092025_20250930235653.pdf

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