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Paramesu Biotech IPO Details
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Schedule of Paramesu Biotech IPO
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Allotment of bids
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Issue Highlights
Initial public offering of [] equity shares of face value of Rs.5 each (equity shares) of our company for cash at a price of Rs.[] per equity share (including a share premium of Rs.[] per equity share) (offer price) aggregating up to Rs.600 crores (the offer) comprising a fresh issue of [] equity shares of face value of Rs.5 each aggregating up to Rs.520 crores by our company (the fresh issue) and an offer for sale of [] equity shares of face value of Rs.5 each (the offered shares) aggregating up to Rs.80 crores by the promoter selling shareholder, unimark business solutions private limited (the offer for sale and together with the fresh issue the offer). The face value of the equity share is Rs.5 each and the offer price is [] times the face value of the equity shares. The price band and the minimum bid lot size will be decided by our company in consultation with the book running lead manager.
About Paramesu Biotech Ltd IPO
The IPO of Paramesu Biotech Ltd is a 100% book-built issue of 600 crores. It comprises a fresh issue and an offer for sale. The fresh issue aggregates up to ₹520 crore while the offer for sale aggregates up to ₹80 crore.
Objectives of Paramesu Biotech Ltd IPO
The company proposes to utilise the proceeds received from the IPO to:
- Fund the capital expenditure requirement for setting up of new plant of 1200 TPD at its proposed facility in Mohasa
- Repay or prepay, in part or full, of certain borrowings availed by the company
- Fulfil general corporate purposes
Paramesu Biotech Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue Size | Up to ₹520 crore |
Offer for Sale | Up to ₹80 crore |
EPS (in ₹) for FY 24 | 1.54 |
Paramesu Biotech Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Bidders | Not less than 15% of the offer |
Retail Individual Bidders | Not less than 35% of the offer |
Industry Outlook
To address the growing demand from animal feed and ethanol production, the Government plans to boost maize production by 10% to reach 42 million tons (MMT) by 2025-26, up from 38.1 MMT in 2022-23. The Indian maize starch market is expected to reach ₹421 crore by 2029 from ₹268.38 crore in 2019.
Company Information
Paramesu Biotech Ltd is one of the largest manufacturers of maize based speciality products in India equipped with an installed capacity of 800 TPD. The company offers a diversified portfolio of maize based speciality products and different kinds of modified including native maize starch, modified maize starches, liquid glucose, maltodextrin powder, and co-products like germs, gluten, fiber, corn steep liquour and enriched fibre, amongst others.
Strengths of Paramesu Biotech Ltd
One of the largest players, offering a diverse portfolio of maize based speciality products and having high barriers to entry
The company is one of the largest manufacturers of maize based speciality products equipped with an installed capacity of 800 TPD. Paramesu Biotech is a market leader in the maize based specialty products industry which has high entry barriers. The barriers include the high capital costs of building manufacturing facilities, lead time, and building customer confidence and relationships which can only be achieved through a long gestation period, the limited availability of raw materials necessary for manufacturing due to alternative applications of the raw materials, certain capacity required for achieving economies of scale, and competition from well established players. The company’s Devarapalli Facility has been duly certified in accordance with FSSAI, FSSC 22000:2018, HALAL, International Standards for Quality Management Systems as per ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018, HALAL Indonesia and Kosher certificate
Diversified customer base spread across multiple industries, inherently de-risking the business model
The company specialises in providing a comprehensive range of products, with a focus on manufacturing native and modified maize starches, along with a variety of derivatives and co-products. They are one of the very few companies in the country, which specializes in different kinds of modified starches (Source: F&S Report). These products are essential for diverse industries, serving as key components in ingredients, thickening agents, stabilizers, sweeteners, emulsifiers, additives, nutritional ingredients, disintegrants, excipients, supplements, coating agents, binders, as well as smoothing, flattening, and finishing agents, among others.
Strategically located manufacturing plant well-connected to raw material sources and key consumption markets
The company’s Devarapalli facility in Andhra Pradesh, India is strategically located with ample scope for expansion. It has an aggregate land area of 2.63million square feet (approximately 60.29 acres). They also have another 1.03 million square feet (approximately 23.53 acres) available for future expansion. The Devarapalli facility possesses a significant and valuable resource—an abundance of groundwater, which is a critical asset for continuous operations.
Long-standing relationships with customers
The company’s experience in maize based speciality products has contributed significantly to its efforts to establish its relationships with customers. It had served 518, 756, 602 and 594 customers during the six-month period ending September 30, 2024 and Fiscals 2024, 2023 and 2022 respectively.
Risks of Paramesu Biotech Ltd
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Any fluctuation in the raw material prices may adversely affect the pricing of the company’s products and may have an impact on its business, results of operation, financial condition and cash flows.
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The company sells its products for specific use by diversified industries. However, any reduction in the demand or requirement of its products in such industries may result in loss of business and may affect its financial performance and condition.
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As of September 30, 2024, the company derived 89.42% of its revenue from operations from orders placed by repeat customers. Any loss of, or a significant reduction in the repeat customers could adversely affect its business, results of operations, financial condition and cash flows.
Paramesu Biotech Ltd Financials
Peer Comparison
| Parameter for FY 24 | Paramesu Biotech Ltd | Sanstar Ltd | Gujarat Ambuja Exports Ltd | Gulshan Polyols Ltd | Sukhjit Starch and Chemicals Ltd |
|---|---|---|---|---|---|
Total Income (In ₹ crore) | 629.285 | 1081.683 | 5071.420 | 1390.182 | 1385.033 |
P/E | NA | 24.82 | 16.38 | 71.67 | 15.67 |
Return on Net Worth (in %) | 23.30 | 30.92 | 12.49 | 3.01 | 9.94 |
EPS in ₹ | 1.54 | 4.75 | 7.54 | 2.85 | 15.99 |
IPO Registrar and Book Running Lead Manager
Bigshare Services Pvt Ltd is the registrar of this IPO. Pantomath Capital Advisors Private Ltd is the IPO’s book running lead manager.
Business Model
Paramesu Biotech Ltd offers a diversified portfolio of maize based speciality products including native maize starch, modified maize starches, liquid glucose, maltodextrin powder and co-products like germs, gluten, fibre, corn steep liquor and enriched fibre. Its modified starch product portfolio includes dextrin, pre-gelatinised starch, thin boiled starch, cationic starch, oxidised starch, and spray starch.
Company Growth Trajectory
The company’s revenue from operations jumped from ₹494.905 crore in FY 22 to ₹627.847 crore in FY 24. Its profit after taxes jumped from ₹33.965 crore in FY 22 to ₹40.337 crore in FY 24.
Market Position
Paramesu Biotech Ltd has a pan India presence, with its products being sold in 14 states and 4 union territories. Over the years, it has exported its products to over 10 countries across South East Asia and Middle East. Additionally, it’s a recognised Two Star Export House under the Indian Ministry of Commerce.
Paramesu Biotech Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 629.285 | 625.344 | 496.603 |
Profit Before Tax (in ₹ crore) | 54.427 | 44.021 | 46.005 |
EBITDA (in ₹ crore) | 76.545 | 56.727 | 59.749 |
EPS in ₹ | 1.54 | 1.24 | 1.29 |
Paramesu Biotech Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crore) | 54.427 | 44.021 | 46.005 |
Net Cash Flow from Operating Activities (in ₹ crore) | 32.175 | 15.134 | 83.184 |
Net Cash Used in Investing Activities (in ₹ crore) | (79.886) | (65.413) | (4.889) |
Net Cash From Financing Activities (in ₹ crore) | 50.065 | 50.035 | (77.954) |
Cash and Cash Equivalents at the End of the Financial Year (in ₹ crore) | 2.495 | 0.141 | 0.385 |
How to Check Allotment Status of Paramesu Biotech Ltd IPO?
You can check the allotment status of Paramesu Biotech Ltd IPO through the BSE website or through its registrar’s portal. To check the allotment status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To check the status on the registrar's website:
- Visit the website of Bigshare Services Pvt Ltd
- Select any one server among the three
- Select the company’s name
- Enter either the ‘Application Number’, ‘Beneficiary ID’ or ‘PAN Number’
- Enter the captcha and click on ‘Search’
How to apply for Paramesu Biotech Ltd IPO?
To apply for Paramesu Biotech Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Paramesu Biotech IPO FAQs
What is the Paramesu Biotech Ltd IPO?
The Paramesu Biotech Ltd comprises a fresh issue and an offer for sale. The fresh issue aggregates up to ₹520 crore, while the offer for sale aggregates up to ₹80 crore.
When will the IPO of Paramesu Biotech Ltd go live?
The exact dates of the IPO are yet to be announced.
From where can I read more about the Paramesu Biotech Ltd IPO?
You can read more about Paramesu Biotech Ltd and its IPO from the company’s draft red herring prospectus (DRHP) here Paramesu Biotech Ltd DRHP