Paramount Speciality Forgings Surges 40% On NSE SME Debut

New Delhi, Sep 25 (KNN) Paramount Speciality Forgings Ltd. made a strong debut on the National Stock Exchange's SME platform on September 25, with shares opening at Rs 83, representing a 40.6 per cent premium over the initial public offering (IPO) price of Rs 59.

The robust listing surpassed grey market expectations, which had anticipated a premium of approximately 30 per cent. The grey market, an unofficial trading platform operating before the official listing, often serves as an indicator of investor sentiment.

The company's Rs 32.24-crore public offering, comprising both fresh issuance and an offer for sale, garnered significant investor interest during its four-day subscription period. 

The issue was oversubscribed 74 times, with non-institutional investors leading the charge at 220 times their allocated portion. Retail investors and qualified institutional buyers (QIBs) also showed strong demand, subscribing 41 times and 20 times their respective quotas.

Established in 1994, Paramount Speciality Forgings is a manufacturer of steel forgings used in various industrial sectors, including petrochemicals, chemicals, fertilisers, oil and gas, nuclear power, and heavy engineering. The company operates two manufacturing facilities in Maharashtra, located in Kamothe and Khalapur.

Paramount intends to utilise the net proceeds from the fresh issue for specific objectives, including capital expenditure to purchase machinery and equipment for expansion at its Khopoli plant, as well as for general corporate purposes.

This successful listing underscores the continued investor appetite for small and medium enterprises in the Indian stock market.

(KNN Bureau)