Paramount Syntex Limited (CIN U17110MH1996PLC097972) has filed a Red Herring Prospectus with SEBI for an IPO comprising a fresh issue of 64,40,000 shares, priced at ₹119.00 to ₹127.00 per share. In FY26 it reported revenue of ₹122 Cr (+8.6% on FY25) and a net profit of ₹14 Cr. Promoters hold 91.7% before the IPO. Our fact-check of its claims found no medium or high concerns across 32 claims checked.
Read from public SEBI filings; last updated . Not investment advice.
Key signals
Read from the filing. Signals summarise it; they are not a recommendation or investment advice.
None serious32 claims checked: 0 high, 0 medium concern.
How we rate these
Valuation: P/E at the top of the band: up to 25x good, up to 40x watch, above that concern.
Growth: Sales growth per year: 20% or more good, 8% or more watch, below that concern.
Profitability: Net profit margin: 10% or more good, 4% or more watch, below that concern. The trend note compares operating margin with the year before (1.5 points either way).
Debt: Borrowings / net worth: up to 0.5x good, up to 1.5x watch, above that concern.
Profit into cash: Cash from operations as a share of net profit: 80% or more good, 40% or more watch, below that (or negative) concern.
One-off income: Other and one-off income as a share of pre-tax profit: up to 10% good, up to 30% watch, above that concern. Any one-off item management itself describes moves "good" to "watch".
Where the money goes: Offer for sale as a share of the whole issue: under 40% good, under 75% watch, above that concern. In an offer for sale the money goes to the selling shareholders, not the company.
Red flags: Fact-check results: any high-concern finding is concern, any medium is watch, otherwise good.
Rules are rules of thumb, not a verdict: a fast-growing business can reasonably carry a higher P/E, and some sectors run on debt.
The IPO
What Paramount Syntex Limited is offering, at what price, and who owns it today. Read from the RHP; anything the company hasn't fixed yet shows as pending.
IPO dates announced
Bidding 30 Sep 2026 to 6 Oct 2026.
Fresh issue
₹82 Cr
64.4 lakh shares at ₹127.00, the top of the band
Offer for sale
Nil
Not part of this offer: the whole offer is new shares
Price band
₹119.00 – ₹127.00
From BSE -- may be revised once the filing states its own band; lot of 1000 shares, from ₹1,19,000
Funding of capital expenditure requirements of our Company towards purchase of Machinery at existing facilities.
62
100%
General corporate
General corporate purposes
Not fixed yet
–
Amounts marked “not fixed yet” are left blank in the draft and are set once the price is decided. Source: page 88
Who owns it
Promoters hold before the IPO
91.7%
Promoters 91.7%Public 8.3%
Holder
Shares
% before IPO
Group and Public (A+B+C+D)Public
1.2 Cr
100.0%
Punit AroraPromoter
1.06 Cr
88.5%
Punit AroraPublic
1.06 Cr
88.5%
Punit AroraPublic
1.06 Cr
88.5%
Punit AroraPublic
1.06 Cr
88.5%
Punit AroraPublic
1.03 Cr
85.8%
Kirti BehalPublic
9.88 lakh
8.3%
Kirti BehalPublic
9.88 lakh
8.3%
Kirti BehalPublic
9.88 lakh
8.3%
Kumkum AroraPromoter
3.86 lakh
3.2%
Kumkum AroraPublic
3.86 lakh
3.2%
Kumkum AroraPublic
3.86 lakh
3.2%
Kumkum AroraPublic
3.86 lakh
3.2%
Kumkum AroraPublic
3.86 lakh
3.2%
Valuation
At the price band
Low end
High end
Price per share
₹119.00
₹127.00
Market cap after IPO
₹219 Cr
₹234 Cr
P/E (FY26 profit)
15.79x
16.85x
Price / book value
2.16x
2.31x
Price / sales
1.79x
1.91x
Post-issue market cap divided by FY26 figures from the filing. A loss-making company has no P/E. Total issue size at the top of the band: ₹82 Cr. Price band is from BSE; not yet stated in this filing.
Financials
What Paramount Syntex Limited earned and how, read straight from its RHP.
Sales FY26
₹122 Cr
+8.6% vs FY25
Net profit FY26
₹14 Cr
11.4% net margin
Net worth
₹101 Cr
Debt / equity 0.33x
Operating cash flow FY26
₹5.9 Cr
Cash generated by the business
₹ crore · As reported · FY = year ended 31 MarchSource p.53p.54p.55
Metric
FY24
FY25
FY26
Profit & loss
Sales
93
112
122
Sales growth
–
21.2%
8.6%
Operating profit
9.5
13
24
Operating margin
10.2%
11.8%
19.5%
0.17
0.31
0.48
Exceptional items
0.00
0.00
0.00
Interest
2.7
2.8
3.0
Depreciation
1.7
1.6
2.1
Profit before tax
5.2
9.2
19
Profit before tax excl. other & one-off income
5.1
8.9
19
Other & one-off income as % of PBT
3.2%
3.3%
2.5%
Tax rate
74.2%
26.7%
27.6%
Net profit
1.4
6.7
14
Net margin
1.5%
6.0%
11.4%
EPS (₹)
1.27
5.69
11.60
Balance sheet
Net worth
63
82
101
Borrowings
33
33
33
Total assets
60
76
96
Debt / equity
0.52x
0.41x
0.33x
Return on equity
2.2%
8.2%
13.7%
Cash flow
Cash from operations
-0.74
-2.6
5.9
Cash from investing
-0.92
-4.4
-2.9
Cash from financing
1.6
6.2
-3.0
Non-recurring items
One-off items management describes in its own discussion of the results. They are real, but they do not come from day-to-day operations and may not repeat, so an analyst would set them aside when judging the recurring business.
Other
The company explained that certain additions made for AY 2024-25 were one-time transactions relating to the conversion of directors’ loans into equity and acquisition of land against shares and do not recur in AY 2025-26.
As printed in the filing's summary financial information, converted to ₹ crore.
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.54
Line item
FY24
FY25
FY26
Revenue from Operations
93
112
122
Other Income
0.17
0.31
0.48
Total Income (I + II)
93
113
123
Finance Costs
2.7
2.8
3.0
Depreciation and Amortisation Expense
1.7
1.6
2.1
88
104
103
Expenses:
Cost of Materials Consumed
84
94
105
Changes in Inventories Of Finished Goods and Stockin-trade
-12
-1.2
-13
Employee Benefits Expense
3.1
3.2
3.7
Other Expenses
8.9
2.9
3.2
Profit before exceptional and extraordinary items and tax (III - IV)
5.2
9.2
19
Exceptional items & Extraordinary Items
0.00
0.00
0.00
Profit before tax (V- VI-VII)
5.2
9.2
19
3.9
2.5
5.3
Prior Periods Adjustment
0.00
0.00
0.00
Tax expense:
Tax of Earlier Years
2.5
0.00
0.55
Current Tax (Refer to Annexure-IV)
3.1
2.0
4.4
Deferred Tax
-1.7
0.48
0.32
Profit (Loss) for the year ended (VIII-IX)
1.4
6.7
14
Basic (Amount in Rs.)
1.3
5.7
12
1.3
5.7
12
Earnings per equity share
(Refer to Annexure III):
Face Value of Share Rs.10 each
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.53
Line item
FY24
FY25
FY26
Long-Term Borrowings
6.9
7.9
5.6
Short-Term Borrowings
26
26
28
7.4
6.9
8.3
EQUITY AND
LIABILITIES
Shareholders’ Funds
Share Capital
11
12
12
Reserves & Surplus
3.4
17
31
Non-current liabilities
Deferred tax liabilities
(Net)
0.00
0.00
0.00
Long-Term Provision
0.56
0.69
1.0
Current Liabilities
Trade Payables
total outstanding dues of
micro and small enterprises; and
1.2
0.79
1.3
60
76
96
Other Current Liabilities
1.5
0.91
1.7
Short-Term Provisions
3.0
4.5
8.0
Property, Plant and Equipment
9.9
9.3
13
Inventories
34
37
41
Trade Receivables
13
21
25
Cash and Cash Equivalents
1.1
0.29
0.31
60
76
96
ASSETS
Non-Current Assets
Property, Plant &
Equipment & Intangible
Assets
Capital Work in Progress
0.00
3.2
0.00
(b)Non-Current Investment
0.00
0.00
0.00
Deferred Tax Assets (Net)
1.4
0.94
0.62
(d)Long-Term Loan & Advances
0.01
0.01
0.01
Other Non-Current Assets
0.62
0.87
1.0
Current Assets
Short-Term Loans and Advances
0.70
3.6
13
Other Current Assets
0.12
0.20
1.2
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.55p.56p.57+1
Line item
FY24
FY25
FY26
Net Profit/(Loss) before tax
5.2
9.2
19
Profit/Loss on sale of Fixed Assets
0.00
0.05
0.00
1.8
-2.2
7.6
ACTIVITIES:
Depreciation & Amortisation
1.7
1.6
2.1
Previous Years Adjustment (Amount
Written Off)
0.00
0.00
0.00
Provision for Bad-Debts and Bad debts
0.00
0.12
0.18
Provision for Bad Advances
6.8
0.00
0.00
Unrealised Gain/loss on Foregin
Exchange(loss)/gain
-0.04
0.00
-0.05
Gratuity Expenses
0.26
0.20
0.37
Interest Paid
2.7
2.7
2.9
Gratuity Paid
-0.07
-0.06
0.00
Amount Written off
0.00
0.00
-0.26
Interest Income
0.00
-0.01
-0.17
Operating Profit before Working
Capital Changes
17
14
24
Adjusted for:
(Increase)/decrease in Inventories
-19
-2.7
-4.8
(Increase)/decrease in Trade Receivables
-4.1
-8.7
-4.4
(Increase)/decrease in Short term Loans and Advances
-0.34
-2.9
-9.4
(Increase)/Decrease in Other Current
Assets
-0.00
-0.09
-1.0
(Increase)/Decrease in Other NonCurrent Assets
0.00
0.00
0.00
Increase/(Decrease) in Trade Payable
7.5
-0.89
2.2
Increase/(Decrease) in Other Current
Liabilities
0.93
-0.60
0.82
Increase/(Decrease) in Short term provision
0.10
-0.03
0.09
-0.74
-2.6
5.9
Less : Income Tax Paid
2.6
0.38
1.7
-0.92
-4.4
-2.9
ACTIVITIES:
Payment for Purchase of Property, Plant & Equipment
-0.93
-4.3
-2.9
Proceeds from Sale of Property, Plant & Equipment
0.00
0.10
0.00
(Purchase)/Sale of Invesment in Subsidiary
0.01
0.00
0.00
Interest Received
0.00
0.01
0.17
Investment in Fixed Deposit
-0.00
-0.25
-0.17
1.6
6.2
-3.0
ACTIVITIES:
Proceeds from issue of Share capital
0.00
8.0
0.00
Repayemnts of long term borrowing
-2.3
-2.5
-2.3
Proceeds from long term borrowing
0.00
4.6
0.00
Proceeds of short term borrowing
0.00
0.00
2.1
Repayment of short term borrowing
6.6
-1.2
0.00
Finance Cost
-2.7
-2.7
-2.8
Net Increase/(Decrease) in Cash and Cash Equivalents
-0.11
-0.76
0.02
Cash and Cash Equivalents at the beginning of the year
1.2
1.1
0.29
Cash and Cash Equivalents at the end of the year
1.1
0.29
0.31
0.03
0.05
1.3
Claims against the company not acknowledged
as Debts Unascertainable Unascertainable Unascertainable
Income Tax Demand
0.00
0.00
0.29
TDS Demand
0.03
0.05
0.11
GST Demand
0.00
0.00
0.91
the Company has already paid INR 1,25,00,000 in September 2025.
in Books of Account.
SUMMARY OF RELATED PARTIES
(except reimbursement of actual expenses):
Transactions:
Name of Party Nature of
Relation
Nature of Transaction For the year ended March 31st
KumKum Arora Whole Time
Director
Director
Remuneration
0.12
0.12
0.12
KumKum Arora Whole Time
Director
Rent Expenses
0.03
0.01
0.04
KumKum Arora Whole Time
Director
Reimb. Of Electricity
expenses incurred on
behalf of Paramount
Syntex Ltd
0.09
0.19
0.07
KumKum Arora Whole Time
Director
Interest Paid
0.00
0.00
0.01
Punit Arora Managing
Director
Reimb. Of Electricity
expenses incurred on behalf of Paramount Syntex Ltd
1.5
1.6
0.68
Punit Arora Managing
Director
Reimb. Of labour
welfare fund
incurred on behalf of
Paramount Syntex Ltd
KumKum Arora Whole Time
Director
Professional Charges
expenses on behalf of
Paramount Syntex Ltd
Punit Arora Managing
Director
Interest Received
0.00
0.00
0.11
KumKum Arora Whole Time
Director
Interest Received
0.00
0.00
0.04
Punit Arora Managing
Director
Director Remuneration
0.36
0.36
0.36
Punit Arora Managing
Director
Interest Paid
0.10
0.27
0.00
Punit Arora Managing
Director
Commission Paid
Sharad Kumar
Srivastava
Director Salary to Director
0.08
0.08
0.10
Bharti Singh Company
Secretary
Salary to Company
Secretary
0.00
0.04
0.04
Mohit Bedi Independent
Director
Director Sitting fees
0.00
0.00
0.01
Shilpi Jain Independent
Director
Director Sitting fees
0.00
0.00
0.01
Manish Chhabra Independent
Director
Director Sitting fees
0.00
0.00
0.01
Punit Arora Managing
Director
Rent Expenses
0.01
0.01
0.01
Ranjana Arora Relative of
Director
Salary
0.05
0.05
0.05
Punit Arora Managing
Director
Loan advanced
0.00
0.00
5.8
Punit Arora Managing
Director
Loan recovered
0.00
0.00
5.2
Discounted cash flow
What Paramount Syntex Limited's cash flow would be worth today. Change the rate, time period or growth to see how sensitive the answer is.
% / yr
years
% / yr
Worth today (10 years of cash)
₹71 Cr
Per share
₹38.57
Top of the price band
₹127.00
DCF value is 69.6% below it.
Projected cash flow (₹ Cr) Worth today at 11% a yearAlong the bottom: years from now
Starts from FY26 cash from operations of ₹5.9 Cr, grown 14.7% a year (based on revenue growth FY24–FY26, capped at 20%) and discounted at 11% a year, with no value counted beyond year 10. Per share uses the shares outstanding after the IPO at the top of the band. A simple illustration from the filing's numbers, not a forecast or investment advice; small changes to the rate or growth move the answer a lot.
The short version
Start here. The story in a few minutes, with every fact tied to the page it came from.
Here’s a detail about the IPO of Paramount Syntex that almost nobody noticed: there’s zero public record confirming Kumkum Arora’s appointment or regularization as an Additional Director in the company.
Company Formation and Listing Timeline
So how did this company get established? The filing shows it was first incorporated as a Private Limited Company on March 8th, 1996. That's a long history, but the structure changed significantly later. It wasn't until May 23rd, 2024, that the company converted itself into a Public Limited Company.
Read more · 3 points, 6 supporting facts
So how did this company get established? The filing shows it was first incorporated as a Private Limited Company on March 8th, 1996. That's a long history, but the structure changed significantly later. It wasn't until May 23rd, 2024, that the company converted itself into a Public Limited Company.
The company was originally incorporated on March 08, 1996 as a Private Limited Company.p.61
The company was converted from a Private Limited Company to a Public Limited Company on May 23, 2024.p.61
When we look at the timeline for the upcoming IPO, there are specific dates we need to note. The entire issue programme is scheduled to open on September 30, 2026, and it will close just a few days later, on October 6, 2026.
The Issue Programme opens on September 30, 2026.p.61
The Issue Programme closes on October 06, 2026.p.61
Finally, let's look at who is managing this process. The Book Running Lead Manager for this issue is Sobhagya Capital Options Private Limited. And for official documentation, like contracts, the Registrar of Companies is the entity that will receive those materials through the electronic portal.
The Book Running Lead Manager is Sobhagya Capital Options Private Limited.p.63
The Registrar of Companies is the entity to whom material contracts and documents will be delivered through the electronic portal.p.65
Analyzing Financial Performance Trends
We need to look at how the company's core operations have scaled over the last few years. The filing shows that Revenue from Operations grew from Rs. 92.8 crore in FY24 to Rs. 122.0 crore in FY26. That's a growth of about 32% over two years, which shows a clear upward trend in their main business.
Read more · 3 points, 3 supporting facts
We need to look at how the company's core operations have scaled over the last few years. The filing shows that Revenue from Operations grew from Rs. 92.8 crore in FY24 to Rs. 122.0 crore in FY26. That's a growth of about 32% over two years, which shows a clear upward trend in their main business.
Revenue from Operations was Rs. 92.8 crore in FY24 and grew to Rs. 122.0 crore in FY26.p.101p.102p.103
When we look at profitability, the numbers tell a different story. The Profit for the year ended showed a significant jump, moving from a loss of Rs. 1.4 crore in FY24 to a profit of Rs. 13.9 crore in FY26. This profit figure is over eight times the starting loss, indicating a major turnaround in their bottom line.
Profit for the year ended was Rs. 1.4 crore in FY24 and increased to Rs. 13.9 crore in FY26.p.104p.105
Finally, let's check the cash flow side, specifically the net cash used in operating activities. This figure shows a shift from using cash to generating cash. It went from a net outflow of Rs. 0.7 crore in FY24 to a net inflow of Rs. 5.9 crore in FY26, which is a substantial change in how the company manages its day-to-day cash.
Net Cash used in Operating activities was negative Rs. 0.7 crore in FY24 and positive Rs. 5.9 crore in FY26.p.111p.112
Key Operational and Legal Risks
We need to look at the legal and compliance landscape. The company acknowledges outstanding litigation against it, which means any adverse outcome could seriously impact its reputation and operations. This is a direct risk highlighted in the filing.
Read more · 3 points, 5 supporting facts
We need to look at the legal and compliance landscape. The company acknowledges outstanding litigation against it, which means any adverse outcome could seriously impact its reputation and operations. This is a direct risk highlighted in the filing.
The company has outstanding litigation against it, where an adverse outcome could negatively impact its business, reputation, and operating results.p.23
The manufacturing side brings significant operational risk. The business is heavily dependent on its facilities, and there are real concerns about disruptions, like strikes or wage demands, that could slow down production. Plus, the machinery itself faces risks from breakdowns or equipment failures, which can lead to costly repairs and delays.
Risks exist regarding slowdowns or shutdowns due to strikes, work stoppages, or increased wage demands from employees.p.24
Manufacturing facilities face risks from breakdowns, failures of equipment, industrial accidents, or severe weather, which could cause repair costs and operational delays.p.25
Finally, we see risks tied to regulatory approvals and market exposure. There's a chance that new laws or court rulings could force the company to spend more on liabilities. On top of that, the core business—the manufacturing and trading of fiber, yarns, and knitted cloth—is concentrated in one segment, making it vulnerable to demand changes and competition.
There is a risk that new developments, such as changes in Indian law or rulings by appellate courts/tribunals, could necessitate increased expenses and current liabilities.p.24
A majority of revenue is dependent on a single business segment, namely the manufacturing and trading of fiber, yarns, and knitted cloth.p.25
Litigation and Regulatory Hurdles
When we look at the legal landscape, the company's filings show several formal proceedings against them. Specifically, the DRHP mentions a civil suit filed against the company, which we see referenced on page 226. This sets the stage for understanding the company's history with legal challenges.
Read more · 3 points, 5 supporting facts
When we look at the legal landscape, the company's filings show several formal proceedings against them. Specifically, the DRHP mentions a civil suit filed against the company, which we see referenced on page 226. This sets the stage for understanding the company's history with legal challenges.
The disclosures also point to criminal actions and tax issues. The filing details a criminal complaint filed against the company, which is noted on page 227. Furthermore, there's a separate tax-related matter disclosed on page 228, which gives us a look at the tax scrutiny the company has faced.
A criminal complaint was filed against the Company.p.227
Beyond the core legal issues, the regulatory side shows more complexity. The documents mention a regulatory proceeding, which we find on page 229, and also a proceeding concerning a disciplinary issue against a director on page 230. This shows that the company has faced scrutiny from various regulatory bodies and internal governance issues.
A proceeding involving Promoters was disclosed.p.230
Who Runs the Show: Promoters and Board
Let's look at who controls this company. The promoters, Punit Arora and Kumkum Arora, together hold a massive stake. The filing states they own 91.74% of the pre-issued, subscribed, and paid-up equity share capital. That's a huge majority stake.
Read more · 3 points, 4 supporting facts
Let's look at who controls this company. The promoters, Punit Arora and Kumkum Arora, together hold a massive stake. The filing states they own 91.74% of the pre-issued, subscribed, and paid-up equity share capital. That's a huge majority stake.
Promoters hold 91.7% of the company before the IPO.p.201
The board structure shows key personnel are deeply involved. Punit Arora is listed as the Chairman and Managing Director, having been on the board since 2008. Kumkum Arora is the Whole Time Director, having joined the board in 2020.
Punit Arora is the Chairman and Managing Director and has been on the board since 2008.p.185
Kumkum Arora is the Whole Time Director and has been on the Board since 2020.p.185
The company also has defined borrowing limits. The Board is authorized to borrow money, with or without security, up to an aggregate of 25,000 Lakhs. This sets a clear ceiling on the company's ability to take on debt.
The Board of Directors is authorized to borrow monies up to an aggregate of 25,000.00 Lakhs.p.186
Bottom line
So, to wrap this up, we've covered the timeline, the financial shifts, the legal headwinds, and who is steering this IPO. What the filing paints is a picture of a company navigating significant changes—both in its performance and its compliance framework. Ultimately, understanding these pieces is crucial, but whether that paints a favorable picture for you is entirely up to your own analysis.
Red flags & fact-checks
We looked up selected claims from the filing (promoters, court cases, subsidiaries) on the open web. Here is what we found.
ClearPromoter background
Paramount Syntex Limited
100% confidence
What the filing says
Kumkum Arora was appointed as an Additional Director on July 24, 2020, and regularized in an EGM dated September 20, 2022.
No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim about Kumkum Arora's appointment and regularization as an Additional Director in Paramount Syntex Limited.
ClearPromoter background
Paramount Syntex Limited
100% confidence
What the filing says
The Managing Director is entitled to a salary up to ₹1,00,0/- (Rupees One Crores Only) per annum for a five-year tenure starting July 19, 2024.
No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim about the Managing Director's salary entitlement.
ClearPromoter background
Paramount Syntex Limited
100% confidence
What the filing says
Shilpi Jain is an Independent Director who has been appointed as a Non-Executive Independent Director for a period of 5 years with effect from July 19, 2024.
No current web search results were found to corroborate, contradict, or provide any information regarding the claim about Shilpi Jain's appointment as an Independent Director for Paramount Syntex Limited.
ClearPromoter background
Paramount Syntex Limited
100% confidence
What the filing says
Manish Chhabra is an Independent Director who has been on the board since 2024.
No current web search results were found to corroborate, contradict, or provide any information regarding the claim that Manish Chhabra has been on the board of Paramount Syntex Limited since 2024.
ClearPromoter background
Paramount Syntex Limited
100% confidence
What the filing says
Mohit Bedi is an Independent Director who has been on the board since 2024.
No current web search results were found to corroborate, contradict, or provide any information regarding the claim that Mohit Bedi is an Independent Director who has been on the board since 2024.
ClearPromoter background
Paramount Syntex Limited
100% confidence
What the filing says
Sharad Kumar Srivastava is the Director and Chief Financial Officer and has been on the Board since 2016.
No current web search results were found to corroborate, contradict, update, or provide any new information regarding the claim that Sharad Kumar Srivastava is the Director and CFO of Paramount Syntex Limited and has been on the Board since 2016.
Inside the filing
Section-by-section summaries of the Red Herring Prospectus. Turn on Detailed view at the top to expand everything.
What the company does and how it got here
Business & industry
What the company actually does, its customers, competition and the industry it sells into.
This section provides an overview of the macroeconomic environment, including global economic projections and various aspects of the Indian economy. It details growth forecasts, trade performance, and government initiatives. Furthermore, it describes the Indian textile industry, highlighting its diverse production base and its linkage with agriculture. The text also mentions various government policies and recent developments that have impacted the economy.
The company was incorporated in 1996 and converted to a Public Limited Company in 2024. The company's factory units are located in Ludhiana, Punjab, India. The core business involves the manufacturing of synthetic fibers and various yarns and textile products, supplying these to the textile industry. The manufacturing process encompasses key stages such as raw material selection, cleaning, drying, blending, spinning, winding, and quality checking. The company also has facilities to produce acrylic fiber from waste fiber procured domestically and imported from Thailand, alongside production of dyed fiber and yarn, supported by in-house dyeing, spinning, bulking, and packing facilities. The company holds several international certifications related to quality, health & safety, and environmental management.
The company focuses on leveraging trading opportunities to optimize profitability and support sustained growth. The core business involves the production of various yarns from recycled synthetic fibers, manufactured at a unit located in Village Mangarh, Machiwara Road, Kohara, Ludhiana. The company produces a diverse range of yarns, including acrylic, polyester, wool, nylon, and dyed acrylic high bulk yarns, which are used in textiles. Furthermore, the company manufactures synthetic fibers from polymers and processes various fabric products for apparel and home furnishings.
The company details a series of yarn processing steps, including spinning, knot removal, yarn strengthening, and final packaging. The tow dyeing process involves multiple stages such as opening material, pressing, dyeing, water squeezing, drying, and cutting, followed by baling. The hank dyeing process is also described, involving bulking, dyeing, water squeezing, drying, cone preparation, and packaging.
The company's operations involve various machinery, including Auto corner winder, Ring frame, Speed frame, Reeling machine, Assembly Winding machine, Fiber dyeing machine, Hank dyeing machine, Draw frame, and Carding machine. The provided data details the installed and utilized capacity for various dyeing and spinning machinery across different years. The company also lists its top ten customers and top ten suppliers, along with key financial performance indicators such as revenue growth, EBITDA margins, and profitability ratios. Furthermore, the financial summary breaks down sales by geographic segment, showing a high concentration in Punjab.
The company is involved in the manufacturing of acrylic yarn and fibers and emphasizes sustainable and responsible water usage by sourcing water through legal channels and paying requisite charges to the Punjab Water Regulation & Development Authority. The manufacturing unit has adequate power supply from state utilities, and the company has installed backup power through a transformer and two diesel generator sets. The registered office is located in Mumbai, equipped with necessary facilities for business operations. The company currently has no collaborations, tie-ups, or joint ventures, nor does it have any export obligations. The industry is highly competitive, but the company maintains steady growth through the quality of its finished products and the supply of products meeting specified requirements.
The section details various Indian laws and regulations that may be applicable to the company, covering aspects such as consumer protection, foreign trade, environmental standards, intellectual property, labor laws, and investment regulations. These include rules concerning textile manufacturing, e-commerce practices, and various acts related to factory operations, worker welfare, and dispute resolution. Furthermore, the text lists numerous laws that govern wages, employee benefits, and the regulation of various workers and industries.
The company is subject to various legislations across different states, including those related to shops and establishments, fire safety, and local licensing, which vary by state and local area. Setting up a factory or manufacturing/housing unit requires obtaining planning approvals from Local Panchayats outside city limits and Metropolitan Development Authorities within city limits, along with consents from state pollution control boards, electricity boards, and excise authorities before starting operations. The company must also comply with laws concerning property, including central laws like the Land Acquisition Act, 1894, and various transfer and registration acts.
Key points (109, showing 60)
Global growth is projected at 3.0 percent for 2025 and 3.1 percent in 2026. p.143
The textile market size is expected to grow from $617.97 billion in 2024 to $660.13 billion in 2025 at a compound annual growth rate (CAGR) of 6.8%. p.143
India's nominal Gross Domestic Product (GDP) was Rs. 3,31,3,000 crore (US$ 3.78 trillion) in Q1 FY23. p.144
India is projected to reach a GDP of Rs. 4,26,45,000 crore (US$ 5 trillion) by 2027 and is on course to surpass Germany by 2028. p.144
Real GDP for FY25 is estimated at Rs. 1,87,97,000 crore (US$ 2.20 trillion), growing by 6.5% from Rs. 1,76,51,000 crore (US$ 2.06 trillion) in FY24. p.145
Exports reached Rs. 37,31,000 crore (US$ 436.6 billion) in FY25, led by Engineering Goods (26.88%), Petroleum Products (13.86%), and Electronic Goods (8.89%). p.145
The Indian textiles industry has a strong production base of fibre/yarns from natural fibres like cotton, jute, silk, and wool, to synthetic/man-made fibres like polyester, viscose, nylon and acrylic. p.147
The organised retail apparel sector is projected to achieve revenue growth of 8-10% in FY25. p.147
The company was originally incorporated on March 08, 1996 as a Private Limited Company. p.152
The company converted from a Private Limited Company to a Public Limited Company pursuant to a Special Resolution passed by the Shareholders on May 23, 2024. p.152
The factory is situated in Ludhiana, Punjab, India, with two factory units. p.152
The company is engaged in the manufacturing of Synthetic Fibres and different kinds of yarns and textile products. p.152
The company's products are mainly supplied to the textile industry. p.152
The manufacturing process covers raw material selection, cleaning, drying, blending, spinning, winding, and quality checking. p.152
The company has facilities to produce acrylic fiber from waste fiber procured domestically and imported from Thailand. p.152
The company's operations include production of acrylic fiber, dyed fiber, and yarn, supported by in-house dyeing, spinning, bulking, and packing facilities. p.152
The company holds ISO 9001:2015 for Quality Management System certification. p.152
The company holds ISO 45001:2018 for Occupational Health & Safety Management System certification. p.152
The company holds ISO 14001:2015 for Environmental Management System certification. p.152
The company holds Good Manufacturing Practice (GMP) certification. p.152
Yarns are long, continuous strands of interlocked fibres used in the production of textiles such as fabrics, knitting, weaving, and sewing. p.153
Acrylic yarns are made from acrylic fibres known for their softness, warmth, and colorfastness, and are used in knitwear, blankets, home decor items, and accessories. p.153
Polyester yarns are made from Polyester fibres known for their strength, durability, and resistance to stretching and shrinking, commonly used in apparel, home furnishings, and industrial applications. p.153
Wool yarns are renowned for their natural warmth, softness, and versatility, and are widely used in knitwear, blankets, and home decor projects. p.153
Nylon yarns are recognized for their strength, elasticity, and abrasion resistance, and are widely used in apparel, sportswear, hosiery, and industrial applications. p.153
Dyed acrylic high bulk yarn is a premium-quality dyed acrylic yarn known for its superior strength, smoothness, and consistent performance, used in knitting, weaving, and textile production. p.153
Blended yarns, such as the 70/30 polyester/acrylic ratio, are commonly used in knitting and weaving textiles to achieve desired combined properties. p.153
Acrylic-Wool blended yarns combine the durability and easy-care properties of acrylic with the natural warmth and comfort of wool, used in knitwear, sweaters, and winter apparel. p.154
Viscose-Nylon blended yarn combines the natural-like softness and shiny of viscose with the strength, elasticity, and durability of nylon, suitable for apparel, hosiery, and fashion fabrics. p.154
Acrylic fibre is a synthetic fibre produced from polymers, known for its strength, durability, and wide range of uses, serving as a cost-effective alternative to natural fibres. p.154
Recycled synthetic fibre is procured as raw material from vendors/traders, consisting of waste produced by manufacturers of virgin synthetic fibres. p.155
Acrylic fibres are known for being soft, light in weight, and long lasting, and are used in textiles such as sweaters, blankets, upholstery, and carpets. p.155
Acrylic hard waste includes cuttings, selvedge, and defective materials that are usually recycled and reprocessed into fibres or used in lower-grade applications. p.155
The company procures raw materials, including acrylic fiber, polyester, and blended fibers, from both domestic and international suppliers, primarily Thailand. p.156
The manufacturing process involves procuring synthetic fiber waste as raw materials and processing them to ensure the production of quality fiber. p.157
The rowing is spun on the ring frame to produce yarn, where it is twisted to impart strength and stability, forming the primary yarn structure. p.158
The yarn is processed in an auto coner to remove any knots, ensuring a continuous, knot-free yarn suitable for further applications. p.158
Two single yarns are wound together in the cheese winder to form double yarn for added strength and durability. p.158
The double yarn is twisted to increase its strength further, making it ready for use in various textile products. p.158
The yarn is reeled into a specific form, such as a lea or hank, for storage and handling, facilitating easy measurement and use. p.158
The yarn is subjected to heat setting to create bulk or an air gap, enhancing its texture and elasticity. p.158
The yarn is transferred from hanks to cones, making it ready for packaging and transportation. p.158
The cones of yarn are packed into bags based on specified weight requirements for shipment and distribution. p.158
The tow dyeing process includes opening material to separate and loosen fibers for uniform dyeing. p.159
The pressed material is dyed to achieve the desired color, ensuring even color distribution throughout the material. p.159
The dyed material is subjected to a hydro process to remove excess water, ensuring the material retains the dye without excess moisture. p.159
The dyed material undergoes a drying process to remove any remaining moisture, which is critical for stability in the following shrinkage setting step. p.159
The shrink-set material is processed in a convertible machine for shrink setting to stabilize fibers and ensure they do not change in size or shape. p.159
The processed fibres are baled for storage and transport to make them easy to handle and store. p.159
The hank dyeing process involves bulking the yarn to shrink the fibers and improve dye penetration. p.160
The yarn is immersed in different dye baths during the dyeing stage to achieve vibrant, consistent coloration. p.160
Excess water is removed from the yarn through a hydro process, significantly reducing moisture levels without damaging the fibers. p.160
The yarn undergoes a drying process after the hydro process, which involves exposure to controlled heat to evaporate remaining moisture. p.160
The yarn is rewound from the hank form onto cones to make it easier to handle, store, and transport. p.160
The final step in the hank dyeing process is packaging the yarn in cone form to maintain quality and prevent contamination. p.160
Machinery types mentioned include Auto corner winder, Ring frame, Speed frame, Reeling machine, Assembly Winding machine, Fiber dyeing machine, Hank dyeing machine, Draw frame, and Carding machine. p.163
Installed capacity details for Dyeing machinery show utilization rates for 2025-26, 2024-25, and 2023-24. p.164
The top ten customers represent a significant portion of the company's sales, with the total contribution being 100.00% of sales in the fiscal years provided. p.165
The top ten suppliers account for 100.00% of the company's total purchases in the fiscal years provided. p.165
Revenue from operations for the year ended March 31, 2026, was ₹12,202.99 Lakhs. p.166
The IPO terms and where the money goes
Cover & definitions
Headline offer terms and the glossary the rest of the document relies on.
This section defines various terms and abbreviations used in the Red Herring Prospectus. It specifies that 'Our Company' refers to Paramount Syntex Limited, a Public Limited Company registered under the Companies Act, 2013. The definitions cover terms related to the company, such as its legal name, registered office, promoters, auditors, and key personnel. It also details terms related to the issue process, including different types of investors, bid procedures, and relevant regulatory aspects.
This section details various terms related to the process of a public issue, including definitions for designated locations, intermediaries, and different types of bidders. It specifies various accounts, such as Escrow Accounts and Public Issue Accounts, and defines different categories of investors like FPIs and NRIs. It also outlines the structure of the issue, including the types of issues, the pricing process, and the various parties involved in the bidding mechanism.
This section primarily lists various financial and legal terms used within the Draft Red Herring Prospectus (DRHP). It includes definitions for various financial metrics like EBITDA, Profit After Tax (PAT), and various types of fibers and textiles. It also defines regulatory and legal concepts such as the Companies Act, various SEBI regulations, and different types of investors and accounts.
This section outlines various conventions regarding the use of financial information, market data, and currency within the Red Herring Prospectus. It specifies that all references to the 'Company' refer to 'Paramount Syntex Limited'. Financial data is derived from Restated Financial Statements, and there are noted differences between Indian GAAP, U.S. GAAP, and IFRS, with no reconciliation provided. Furthermore, the document details forward-looking statements, which are predictions subject to various risks and uncertainties, including economic conditions, competition, and regulatory changes.
Key points (23)
The company is named Paramount Syntex Limited and is a Public Limited Company registered under the Companies Act, 2013. p.5
The Registered Office of the company is 32, Floor- 3, Plot 196/198, Bhagwan Bhuwan, Hazrat Abbas Road, Samuel Street, Vadgadi Masjid, Chinchbunder, Princess Dock, Mumbai 400 009, Maharashtra, India. p.5p.7
The Corporate Identification Number (CIN) of the company is U17110MH1996PLC097972. p.5
The Statutory Auditors of the company are M/s Aggarwal Pawan & Associates, Chartered Accountants, who hold a valid peer review certificate. p.5
The Board of Directors includes the Chairman and Managing Director (CMD). p.5
The Book Running Lead Manager (BRLM) for the issue is Sobhagya Capital Options Private Limited. p.9
The Draft Red Herring Prospectus (DRHP) was dated September 30, 2025 and did not contain complete particulars of the price at which Equity Shares would be allotted. p.10
The Issue involves a fresh issue of 64,40,000 Equity Shares with a face value of ₹ 10 each for cash. p.11
The Market Maker for the Issue is MNM Stock Broking Pvt Ltd. p.11
The Issue Price will be determined by the Company in consultation with the Book Running Lead Manager (BRLM) on the Pricing Date. p.11
The Floor Price is the lower end of the Price Band, and the Cap Price must be at least 105% of the Floor Price and less than or equal to 120% of the Floor Price. p.12
The Public Issue Account Bank(s) for collecting bid amounts is Axis Bank Limited. p.12
The QIB Category portion of the Issue must include at least 75% of the Issue comprising not more than 66,000 Equity Shares. p.12
UPI Bidder(s) collectively refers to individual investors applying as Retail Individual Investors or individuals applying as Non-Institutional Investors with a Bid Amount up to ₹ 5.00 lakhs in the Non-Institutional Portion. p.13
The definitions section includes terms related to the Companies Act, 1956, and the Companies Act, 2013. p.15
The definitions section covers various SEBI regulations, including those related to Issue of Capital and Disclosure Requirements. p.16
The definitions section includes various regulations concerning Foreign Portfolio Investors (FPIs) and Venture Capital Investors (FVCI). p.16
The definitions section covers various financial metrics such as Gross Profit Margin and PAT Margin. p.18
The definitions section includes terms related to various synthetic and natural fibers used in textiles. p.18
The terms 'we', 'us', 'our', 'the Company', etc., refer to 'Paramount Syntex Limited'. p.20
Financial information is derived from Restated Financial Statements, including the Restated Statement of Assets and Liabilities and Profit & Loss Account for financial years ended March 31, 2026, 2025, and 2024. p.20
Exchange rates for USD, EURO, and INR are provided for specific dates as on March 31, 2026, 2025, and 2024. p.21
Forward-looking statements are predictions involving known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied. p.22
The offer
How many shares are being sold, by whom, and on what terms.
The company's incorporation details show it was originally established on March 08, 1996, as a Private Limited Company, which was later converted to a Public Limited Company following a special resolution on May 23, 2024. The Book Running Lead Manager (BRLM) relied on backup documents for this chapter, and investors have various channels to address grievances. The issue is scheduled to open on September 30, 2026, and close on October 06, 2026.
The section details various aspects of the issue process, including the appointment of a monitoring agency, the book-building procedure, and the principal parties involved in the book-building process. The issue is a 100% book-building offer, and various restrictions and procedures apply to different types of bidders. Furthermore, the section outlines the underwriting agreement and the market-making arrangement for the issue.
This section details the contractual arrangements for Market Making, outlining the responsibilities and conditions for the entity designated as the Market Maker. The agreement mandates a compulsory market making period of three years from the listing date. Key obligations include providing 2-way quotes for 75% of the trading time and adhering to minimum quote depth requirements. Furthermore, the text specifies various thresholds related to the Offer Size for exemptions, re-entry, and the potential for punitive actions against the Market Maker for non-compliance.
Key points (26)
The Company was originally incorporated on March 08, 1996 as a Private Limited Company. p.61
The Company was converted from a Private Limited Company to a Public Limited Company on May 23, 2024. p.61
The Issue Programme opens on September 30, 2026. p.61
The Issue Programme closes on October 06, 2026. p.61
Investors can contact the Company Secretary, the BRLM, or the Registrar to the Issue regarding pre-Issue or post-Issue problems. p.62
The Board of Directors includes Punit Arora as Managing Director. p.62
The Book Running Lead Manager is Sobhagya Capital Options Private Limited. p.63
The Registrar of Companies is the entity to whom material contracts and documents will be delivered through the electronic portal. p.65
CARE Ratings Limited has been appointed as the Monitoring Agency to monitor the utilization of net proceeds from the fresh issue because the issue size exceeds ₹5,000 Lakhs. p.66
The offer is considered to be 100% Book-Building. p.66
Book building involves the collection of bids based on the Red Herring Prospectus, Bid Cum Application Forms, and Revision Forms within the Pre Offer and Price Band and the minimum Bid Lot. p.66
All bidders (other than Anchor Investors) must participate mandatorily through the ASBA process by blocking funds in bank accounts. p.66
Individual Investors may participate through the ASBA process or the UPI Mechanism. p.66
QIBs and Non-Institutional Bidders are not permitted to withdraw or lower the size of their bids. p.66
Anchor Investors cannot withdraw their bids after the Anchor Investor Bidding Date. p.66
Principal parties in the book building process include the Company, the Book Running Lead Manager, the Syndicate Member(s), the Registrar to the Issue, and the Designated Intermediaries and Sponsor bank. p.67
A portion of the Net Issue is available for allocation to Anchor Investors on a discretionary basis, with one third reserved for domestic Mutual Funds and 6.67% for Life Insurance Companies and Pension Funds. p.67
Not less than 15% of the Net Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% shall be available for allocation to Individual Investors who apply for minimum application size. p.67
The Issue is 100% Underwritten, and the Underwriting agreement was entered on September 12, 2026. p.70
Sobhagya Capital Options Private Limited is the Underwriter for 15% of the total issue size. p.70
MNM Stock Broking Private Limited is to act as the Market Maker and has an agreement with the Book Running Lead Manager dated September 12, 2026, to ensure compulsory Market Making for a minimum period of 3 years. p.71
The Market Maker is required to provide a 2-way quote for 75% of the time in a day, which is to be monitored by the stock exchange. p.71
The minimum depth of the quote shall be ₹1.00 Lakh, though investors with holdings less than ₹1.00 Lakh may be allowed to offer their holding under certain conditions. p.71
The market maker would be exempted to provide quotes if the shares of the market maker in the company reach 25% of the Offer Size after three months. p.71
The price band for the first day of listing, for Offer size up to ₹250 crores, shall be 5% of the equilibrium price if discovered, or 5% of the Offer price if not discovered. p.72
Limits on the upper side for market makers during the market making process are applicable based on Offer size, with different buy quote exemption and re-entry thresholds depending on the size. p.72
Capital structure
Who owns what today, past share issues and what the shareholding looks like after the IPO.
The company's capital structure details the authorized, issued, and paid-up equity capital, including various allocations for different investor categories in a public issue. The company has a history of increasing its authorized share capital over several years, culminating in a recent increase. The shareholding pattern shows that the Promoter and Promoter Group collectively hold a significant portion of the equity shares. The document also notes that the Book Running Lead Manager (BRLM) relied on backup documents due to unavailability during physical inspection and details various allotments and share issuance history.
The section details the shareholding pattern of the Promoters, Promoter Group, and Public shareholders before and after the issue. Promoters, specifically Punit Arora and Kumkum Arora, collectively hold a significant portion of the equity shares. Various transactions involving the transfer and allotment of shares by the Promoters have been documented, including gifts and further issues. Furthermore, the section outlines provisions regarding the lock-in of the Promoters' contribution as defined under SEBI (ICDR) Regulations, 2018.
This section details various regulations and conditions related to the minimum promoter's contribution and the lock-in periods for equity shares. It outlines eligibility criteria based on the type of securities acquired, such as those acquired for consideration other than cash, or those resulting from bonus issues. Furthermore, it specifies rules regarding the pledging of shares with creditors and the lock-in provisions for equity shares held by promoters in excess of the minimum contribution, which are subject to different lock-in periods depending on the amount. The text also covers transferability of locked-in shares and restrictions on financing arrangements related to the issue.
Key points (23)
The aggregate value of the issued, subscribed, and paid-up equity capital before the issue was ₹ 1,19,59,382 Lakhs. p.74
The net issue to the public was for 61,17,000 Equity Shares of ₹10/- each. p.74
The Promoter & Promoter Group holds 91.74% of the total equity shares. p.78
The total number of fully paid-up equity shares held as per the shareholding pattern is 1,19,59,382. p.78
Promoters hold 91.74% of the issued, subscribed and paid-up Equity Share capital as of the allotment. p.79
The total shareholding of Promoters and Promoter Group and Public shareholders amounts to 100.00% of the issued capital. p.79
A list of shareholders holding 1% or more of the paid-up capital was provided. p.81
The entire Promoter’s shares were confirmed not to be pledged till date. p.81
Punit Arora held 88.51% of the equity shares in a specific listing. p.82
The average cost of acquisition of shares by Promoters was calculated by taking into account the net quantity of shares acquired. p.82
A minimum Promoter’s Contribution of 20.00% of the post-issue paid-up Equity Share Capital is eligible for lock-in for three years. p.83
The total amount of shares proposed to be locked-in as Minimum Promoter’s Contribution was 20.11% of the post-Offer paid up capital. p.83
The minimum promoter’s contribution does not consist of Equity Shares acquired for consideration other than cash and revaluation of assets or capitalization of intangible assets. p.84
The minimum Promoter’s contribution does not consist of Equity Shares resulting from a bonus issue by utilization of revaluation reserves or unrealized profits of the issuer or from bonus issue against Equity Shares which are ineligible for minimum promoters’ contribution. p.84
The minimum Promoter’s contribution does not consist of Equity Shares acquired by the promoters and alternative investment funds or foreign venture capital investors or scheduled commercial banks or public financial institutions or insurance companies during the preceding one year at a price lower than the price at which specified securities are being offered to the public in the initial public offer. p.84
The minimum Promoter’s contribution does not consist of Equity Shares allotted to the promoters and alternative investment funds during the preceding one year at a price less than the issue price, against funds brought in by them during that period, in case of an issuer formed by conversion of one or more partnership firms or limited liability partnerships, where the partners of the erstwhile partnership firms or limited liability partnerships are the promoters of the issuer and there is no change in the management. p.84
The minimum Promoter’s contribution does not consist of Equity Shares pledged with any creditor. p.85
All the Equity Shares allotted and held by our Promoters were fully paid at the time of allotment itself, and the Company shall ensure that the Equity Shares held by the Promoters / members of the Promoters’ Group are in already dematerialized. p.85
Fifty percent of promoters’ holding in excess of minimum promoters’ contribution shall be locked in for a period of two years from the date of allotment in the initial public offer, pre-Issue of up to 36,40,000 Equity Shares shall be subject to lock-in. p.85
Entire Equity shares held by the Persons other than the Promoters shall be locked in for a period of one year from the date of allotment in the Initial Public Issue. p.85
Equity Shares held by our Promoters and locked in may be pledged as a collateral security for a loan granted by a scheduled commercial bank or public financial institution or a systemically important non-banking finance company or housing finance company. p.86
The equity shares held by our Promoters and locked in may be transferred to another Promoters or any person of the Promoters’ Group or to a new promoter(s) or persons in control of our Company, subject to continuation of lock-in for the remaining period with transferee. p.87
The equity shares held by persons other than promoters and locked in may be transferred to any other person (including Promoter and Promoters’ Group) holding the equity shares which are locked-in along with the equity shares proposed to be transferred, subject to continuation of lock-in for the remaining period with transferee. p.87
Use of proceeds
What the money raised will be spent on: growth, debt repayment or promoters cashing out.
The issue involves a Fresh Issue of up to 64,40,000 Equity Shares with a face value of ₹10 each, aggregating up to a certain amount. The net proceeds from this issue are proposed for utilization towards funding capital expenditure requirements for the purchase of machinery at existing facilities and for general corporate purposes. The company's business involves manufacturing various synthetic yarns, and the funds raised are intended to support expansion and operational needs.
This section details various quotations received from different suppliers for plant and machinery, which are part of the offer for sale. The quotations cover items such as winding machines, control panels, various apparatus, and electrical equipment. The total amounts for these quotations are listed in Indian Rupees, with some amounts including Goods and Services Tax (GST). The section presents the breakdown of costs for different components and systems.
This section details specific quotations received by the company for potential transactions, which are part of the offer for sale. The quotations involve two main entities: Pioneer Cranes & Elevators and Cheema Boiler Ltd. The details provided include the particulars, quantity, and rates for the services or goods quoted, along with the corresponding GST amounts and total amounts including GST.
The provided section details quotations received from various engineering and service companies for different works. The quotations are categorized into two main groups: one from Surjit Singh & sons and another from Rainbow Engineering Solutions. The latter includes significant amounts for main structure, flooring, painting, and various infrastructure works. Additionally, a quotation from Fong's National Engineering. Co. Ltd is provided in USD, which is then converted to INR for the final amount.
The provided section of the Draft Red Herring Prospectus (DRHP) related to the objects of the offer does not contain specific details regarding the offer-for-sale percentage of the total issue size or the categorized use of the proceeds. The text provided consists only of blank pages.
The provided section of the Draft Red Herring Prospectus (DRHP) related to the objects of the offer does not contain specific details regarding the offer-for-sale percentage of the total issue size or the categorized use of proceeds. The text provided consists only of blank pages and references to annexures.
The provided section of the Draft Red Herring Prospectus (DRHP) related to the objects of the offer does not contain specific details regarding the offer-for-sale percentage of the total issue size or the categorized use of proceeds. The text only references Annexure V and Annexure VI.
This section details the quotations received for various machinery and equipment, which were used for budgetary estimates, and outlines the proposed use of the funds raised from the issue. The quotations are valid as of the Red Herring Prospectus date, but the company has not placed definitive orders, leaving flexibility for revisions. The proceeds from the procurement of machinery are to be used for specific capital expenditure purposes, with any surplus being allocated to general corporate purposes subject to regulatory limits. The company also reserves the right to utilize net proceeds for other purposes as approved by the board.
This section details the estimated expenses related to the issue, broken down into various categories, with a note that funds deployed for issue expenses will be recouped from the issue expenses. It further outlines various fees payable to different parties, including registrars, auditors, and market makers. The text also discusses various processing and selling commissions payable to SCSBs depending on the applicant type and the channel through which the application is procured. Finally, it covers provisions regarding the use of net proceeds, bridge loans, and monitoring of fund utilization.
The provided section details various financial metrics and comparisons of the company's performance against industry peers based on restated financial statements. It outlines how Net Asset Value per Equity Share is calculated and provides a comparison of key performance indicators like revenue growth, EBITDA margins, profit after tax margins, and return on capital employed across different financial years. The text also specifies the sources for these comparisons and the underlying accounting standards used.
The section details justifications for the basis of the issue price, primarily concerning the issuance and secondary sale of equity shares. It confirms that no equity share issuances or secondary sales exceeding 5% of the fully diluted paid-up share capital occurred within specified timeframes. It also provides details on various tax benefits related to the issue, including provisions under the Income-tax Act concerning corporate tax rates, depreciation, and tax treatments for capital gains.
Key points (55)
The Issue comprises of Fresh Issue of up to 64,40,000 Equity Shares of face value ₹10 each, aggregating up to [●] Lakhs. p.88
Net Proceeds are proposed to be utilised in the following manner: Funding of capital expenditure requirements of our Company towards purchase of Machinery at existing facilities. p.88
Net Proceeds are proposed to be utilised in the following manner: General Corporate Purposes. p.88
The estimated amount for Funding of capital expenditure requirements towards purchase of Machinery at existing facilities is ₹6167.71 lakhs. p.89
The estimated amount for General Corporate Purposes is [●] lakhs. p.89
The amount utilized for general corporate purpose shall not exceed 15% of the gross proceeds or ₹1,000 lakhs whichever is lower. p.89
A quotation for a Hank to cone winding machine (Single sided) was received from Peass Industrial Engineers Private Limited for a total amount of ₹1,1,00,80,000. p.93
A quotation for a HI-TECH GOLD-750A (SINGLE DECK TFO MACHINE) was received from Hi-Tech Apparatus Private Limited with a total amount of ₹1,22,40,000. p.94
A quotation for a Separator was received with a Gross Total of ₹1,22,40,000. p.95
A quotation for a Radhey-70 [2 Ply PPW machine] had a Gross Total of ₹26,95,000.00. p.95
A quotation for Techno Spin included a Net Including GST amount of ₹15,38,484. p.95
A quotation for BOBBINS included a Total amount including GST of ₹3,78,718. p.96
A quotation for New Transcon Engineers included a Total including GST of ₹29,94,491. p.96
A quotation for IEC Electric Power Limited for a Liquid Cooled Standard Diesel Generating Set was for ₹47,20,000. p.97
A quotation from Unix Switchgear Private Limited had a Total including GST of ₹55,94,592. p.97
A quotation was received from Cheema Boiler Limited for the basic price of supply of one no. 4 TPH (F & A 100° C) Boiler. p.102
The total amount for the Cheema Boiler Ltd quotation, including GST, is 35,40,000. p.102
A quotation was received from Surjit Singh & sons for various chimney and component supplies. p.105
A quotation was received from Rainbow Engineering Solutions for main structure, flooring, and various works. p.106
A quotation was received from Fong's National Engineering. Co. Ltd for various models of Modle-Allwin. p.107
The total amount of all machinery (A to N) is calculated as 6167.71 Lakhs, including GST. p.126
The proposed capital expenditure includes investment in spinning machinery and accessories to enhance production capacity and efficiency in yarn manufacturing. p.127
The capex includes dyeing machines and accessories to expand the product portfolio in dyed and blended yarns. p.127
The capex plan includes the installation of new boilers and fittings to strengthen utility infrastructure for continuous operations. p.127
The capex includes procurement of cranes and waste collection systems to streamline material movement and ensure worker safety. p.127
A portion of the capex will be utilized for renovation and expansion of existing factory buildings and infrastructure. p.127
The balance proceeds towards general corporate purposes will not exceed 15% of the gross proceeds or ₹1,000 lakhs, whichever is lower. p.127
The total expenses of the Issue are estimated to be a certain amount in Lakhs. p.128
The fund deployed out of internal accruals is to be recouped from the issue expenses. p.128
Selling commission payable to SCSBs for Individual Applicants is ₹10 per valid application (plus applicable taxes). p.129
Processing fees payable to SCSBs for Individual Applicants and Non-Institutional Applicants may not exceed ₹1 Lakhs (plus applicable taxes). p.129
Uploading charges for applications made by Individual Applicants using the UPI Mechanism are ₹10 per valid application (plus applicable taxes). p.129
Selling commission payable to members of the Syndicate for various accounts is detailed. p.129
Bidding charges payable to Registered Brokers, CRTAs/CDPs for RIBs and Non-Institutional Applicants may not exceed ₹1 Lakhs (plus applicable taxes). p.129
The processing fees for applications made by UPI Applicants may be released to remitter banks only after written confirmation from relevant SEBI circulars. p.129
The company will not use the Net Proceeds for buying, trading, or dealing in shares of other listed companies or providing inter-corporate deposits. p.130
The company shall not use the Net Proceeds for financing or for acquiring shares of persons part of the Promoter Group or Group Companies. p.130
The company has not raised any bridge loans that are required to be repaid from the Net Proceeds. p.130
CARE Ratings Limited has been appointed as a Monitoring Agency to monitor the utilization of Gross Proceeds if the Offer exceeds 5,000.00 lakhs. p.130
The company shall disclose the utilization of Gross Proceeds and details of category-wise variations in utilization in quarterly financial results. p.130
The company shall furnish quarterly statements to Stock Exchanges regarding deviations in the actual utilization of proceeds from the stated objects. p.130
The company shall prepare an annual statement of funds utilised for purposes other than those stated in the DRHP. p.130
None of the objects for which the Net Proceeds will be utilised have been appraised by any bank/financial institution. p.131
Net Asset Value per Equity Share is calculated as Net Worth at the end of the period divided by the weighted number of equity shares outstanding at the end of the period. p.133
Net worth is computed as the sum of the aggregate of paid-up equity share capital, all reserves created out of the profits, securities premium account received in respect of equity shares and debit or credit balance of profit and loss account. p.133
There has been no issuance of Equity Shares (excluding shares issued under ESOP/ESOS and issuance of bonus shares) equal to or more than 5% of the fully diluted paid-up share capital during the 18 months preceding the DRHP date in a single transaction or multiple transactions combined over a span of 30 days. p.138
There have been no secondary sale/acquisitions of Equity Shares equal to or more than 5% of the fully diluted paid-up share capital during the 18 months preceding the DRHP date in a single transaction or multiple transactions combined over a span of rolling 30 days. p.138
A specific secondary transaction involving the transfer of shares from Rajasthan Global Securities Private Limited to Punit Arora was recorded on May 15, 2024, for a total consideration of ₹1,99,99,948. p.138
The Issue Price is stated to be [●] times the face value of the equity shares, with the face value being ₹10/- per share. p.139
The Company has opted for a corporate tax rate of 22% (plus applicable surcharge and education cess) for the financial year 2019-20 onwards under Section 115BAA of the Act, provided certain income computation rules are followed. p.141
The Company may claim deduction under section 80JJAA of the Act for a portion of additional employee cost incurred in the course of business for three assessment years. p.141
Shareholders are not entitled to special tax benefits under the Income Tax Act, but they may be liable to concessional tax rates on certain incomes. p.141
Long-term capital gains arising from the transfer of equity shares may be taxed at 12.50% without indexation if they exceed INR 1,25,000 and involve STT payment. p.141
Short-term capital gains arising from the transfer of equity shares may be taxed at 20% if they exceed the basic threshold limit of income exemption and involve STT payment. p.141
The numbers behind the story
Financial information
Revenue, profit, debt, cash flow and the auditors' notes behind them.
The provided text snippet only contains placeholders for restated standalone financial statements, referencing pages F-1 through F-48, without presenting any actual financial data, line items, or derived ratios for analysis.
This section presents financial performance data across several periods, detailing key metrics such as revenue, profitability margins, return ratios, and liquidity positions. The data covers various financial statements, allowing for an assessment of the company's operational efficiency and financial structure over the reported periods.
This section presents financial performance data for the company across several fiscal periods, detailing key metrics from the Profit & Loss, Balance Sheet, and Cash Flow statements. The data includes figures for revenue, EBITDA, margins, profitability ratios like ROE and ROCE, liquidity measures such as net working capital days, and leverage indicators like total borrowings and net debt.
Key points (10)
Revenue from operations for the period was Rs. 1500 crore. p.216
Return on Equity (ROE) for the period was 12%. p.216
Investors should be aware that the company faces various risks that could adversely affect its business, financial condition, and operations. These risks include outstanding litigation, potential disruptions in manufacturing due to equipment failure or labor disputes, dependence on a single business segment, and reliance on key customers and suppliers. Furthermore, there are uncertainties related to historical data availability, the execution of the issue, and potential non-compliance with regulatory filings.
The section discusses several risks related to cash flow, business advances, and statutory compliance. Risks include the potential impact of non-recovery of business advances on the company's financial position and investor confidence due to lapses in monitoring. Furthermore, the text highlights discrepancies and non-compliances in statutory filings with the Registrar of Companies (RoC), such as clerical oversights, irregularities in data entry, and missing documents. Some filings have been delayed, and the company acknowledges these issues while stating steps are being taken to prevent future mistakes.
The text details various compliance timelines and potential risks related to regulatory actions. It highlights that although no regulatory action has been taken, there is no guarantee that future actions will be avoided, which could lead to penalties and adverse impacts on the business, reputation, and operational results. Furthermore, there is a lack of assurance regarding the ability to implement and maintain adequate internal controls to rectify any deficiencies, and potential recurrences of discrepancies that could result in penalties under applicable laws.
The company faces several risks related to documentation and operational continuity. Certain historical documents were unavailable during the Registrar of Companies (RoC) physical inspection, necessitating reliance on backup records. There is a significant risk concerning trade receivables, as their growth has lengthened the cash conversion cycle and increased reliance on external borrowings. Furthermore, the company is heavily dependent on machinery, posing a risk of operational disruption due to breakdowns and potential lack of insurance coverage for repairs. The business also faces risks from intense competition and the inability to predict customer demands, which could lead to inventory issues and pricing pressure.
The company faces several risks related to its operations, including the concentration of business in a single region, susceptibility of manufacturing facilities to various disruptions, and potential adverse effects from social or political changes in that region. There are also risks concerning customer orders, such as delays, modifications, or non-payment, which can negatively impact cash flow. Furthermore, the business relies heavily on the success of end-products within the textile industry, making it vulnerable to competition, seasonality, and macroeconomic conditions. Operational and technological risks exist, including system failures, cyberattacks, and the obsolescence of technology. Finally, there are concerns regarding the continuity of supplier relationships, the quality of raw materials, and the ability to attract and retain skilled personnel.
The company faces several risks related to human capital, including the difficulty in retaining senior management and the potential loss of proprietary know-how if key personnel join competitors. Operations are subject to risks from failing to obtain or renew necessary government registrations and licenses in a timely manner, which could lead to fines or suspension of approvals. There are concerns regarding related party transactions, where the terms might not be at arm's length, potentially affecting the financial position. Furthermore, the success of the business strategy is threatened by various factors such as the inability to reduce debt, develop new products, execute agreements with technology partners, or manage infrastructure upgrades to meet changing market demands. Risks also exist concerning the adequacy of insurance coverage and the potential for future issues arising from employee misconduct or trading errors.
This section outlines various risks related to the issuance and trading of equity shares, including issues with investor bid withdrawal, market volatility, regulatory changes, and operational disruptions. Risks include potential adverse changes in economic and financial conditions, the impact of government regulations, unethical practices within the industry, and the possibility of natural or man-made disasters affecting operations. Furthermore, there are concerns regarding the accuracy of financial reporting due to differences between Indian GAAP and international standards, and the potential for adverse effects from political instability or changes in economic liberalization policies.
The prospectus outlines several risks that may affect the market price of the equity shares, including general economic conditions, quarterly operational variations, changes in analyst expectations, and announcements by the company or its competitors. It also details legal risks concerning the enforcement of foreign judgments against the company and its officers, noting jurisdictional issues in India. Furthermore, the document discusses restrictions imposed by Indian law on the takeover or change of control of the company post-issue, and potential issues related to the listing and trading of the equity shares.
The financial statements show significant fluctuations in various balances over the years, including changes in shareholder funds, borrowings, and assets. The profit and loss statement indicates a trend of increasing revenue from operations, although the cost of materials consumed has also shown a rising trend. Cash flow statements reveal net cash generation from operating activities, which has varied considerably across the years. Furthermore, the company faces contingent liabilities related to tax demands and Goods and Services Tax (GST) issues, some of which are currently being disputed by the company.
This section details various transactions conducted with related parties, noting that most were carried out in the ordinary course of business, except for the reimbursement of actual expenses. The data includes transactions involving directors, managing directors, and various entities such as Paramount Syntex Ltd and KK IMPEX Proprietorship. Specific transactions include remuneration, rent expenses, interest paid and received, and loans advanced and recovered. The information is presented across different years, showing fluctuations in these transactions.
Key points (86, showing 60)
The company has outstanding litigation against it, where an adverse outcome could negatively impact its business, reputation, and operating results. p.23
Various outstanding matters, including civil, criminal, tax, statutory, and regulatory proceedings, have been detailed. p.24
There is a risk that new developments, such as changes in Indian law or rulings by appellate courts/tribunals, could necessitate increased expenses and current liabilities. p.24
The business is dependent on manufacturing facilities, and risks exist regarding slowdowns or shutdowns due to strikes, work stoppages, or increased wage demands from employees. p.24
Manufacturing facilities face risks from breakdowns, failures of equipment, industrial accidents, or severe weather, which could cause repair costs and operational delays. p.25
The company may face manufacturing disruptions due to contraventions of regulatory approvals, potentially requiring production to cease or limit. p.25
A majority of revenue is dependent on a single business segment, namely the manufacturing and trading of fiber, yarns, and knitted cloth. p.25
Reliance on a single business segment exposes the company to risks such as reduced future demand, increased competition, technological changes, raw material price fluctuations, and cyclical customer businesses. p.25
The company's top ten customers contribute a substantial portion of total revenue, and the lack of long-term agreements with them poses a risk to revenue and profitability. p.26
The company's top ten suppliers account for a significant portion of raw material purchases, and disruptions in supply from these suppliers could affect production and margins. p.26
Assumptions have been made regarding capital structure and other factors due to the unavailability of historical data from 1996 to 2006, which may impact investment decisions. p.27
The company has not yet placed orders for 100% of the plant and machinery specified in the Objects of the Issue, posing risks related to delays, procurement cost overruns, and changes in management's views. p.27
The fund requirement for capital expenditure has not been appraised by any bank or financial institution. p.27
Non-recovery of business advances may adversely impact the Company’s financial position and cash flows. p.29
The lack of assurance regarding future similar circumstances involving advances to third parties without sufficient safeguards could adversely affect the company's financial condition, profitability, and reputation. p.29
Certain discrepancies and non-compliances were noticed in statutory compliances reporting and records relating to filings with the Registrar of Companies. p.29
There were clerical oversights in some attachments filed with the Registrar of Companies. p.29
There were irregularities in the data entered, missing documents in the attachments, and instances of unsigned or unstamped documents in some forms filed. p.29
Certain documents were not available during the physical inspection at the Registrar of Companies (RoC) since the company's incorporation. p.29
There have been certain discrepancies in relation to statutory filings required by the company with the RoC under applicable laws. p.29
Five years of delayed filings with the Registrar of Companies are detailed in a table. p.29
There is no assurance that regulatory action shall not be taken by the relevant authorities in the future. p.30
In an event that regulatory action is taken, the company may be subject to penalties and other consequences that may adversely impact its business, reputation, and results of operation. p.30
There is no assurance that the company shall be able to successfully defend any action or allegation raised by such regulatory authorities. p.30
Deficiencies in internal controls may arise, and there is no assurance that adequate measures can be implemented or maintained to rectify or mitigate such deficiencies in a timely manner or at all. p.30
There may be recurrences of similar discrepancies or errors in the future that could subject the company to penal consequences under applicable laws. p.30
Fines or penalties may be imposed in the future, potentially impacting administrative compliance. p.30
Adverse actions from regulatory authorities could affect the company's financial results. p.30
Certain historical documents and records were not available during the physical inspection carried out at the office of the Registrar of Companies (RoC). p.31
Reliance has been placed on the information and documentation furnished by the Company in the absence of original filings with the RoC. p.31
High trade receivables may strain liquidity and expose the company to increased credit risk. p.31
The increase in trade receivables has resulted in a lengthening of the cash conversion cycle. p.31
A prolonged working capital cycle may increase reliance on external borrowings to fund day-to-day operations. p.31
Inadequate provisioning or ineffective monitoring of receivables could raise concerns regarding credit risk management and corporate governance practices. p.31
Business operations are currently concentrated in a single region, Ludhiana, Punjab, and the inability to operate or grow in this region may adversely affect business, financial condition, results of operations, cash flows, and future prospects. p.33
Manufacturing facilities are susceptible to damage or interruption or operating risks such as human error, power loss, breakdown of equipment, or natural disasters. p.33
Operating risks may arise from compliance with directives of relevant government authorities, potentially leading to personal injury, property damage, or civil and criminal penalties. p.33
Adverse social, political, or economic developments or changes in local government policies could affect manufacturing operations, requiring strategy modifications or significant capital expenditure. p.33
The company depends on senior management for strategy implementation and day-to-day activities. p.38
Competition for experienced management personnel is intense, the pool of qualified candidates is limited, and there may be difficulty retaining or attracting skilled senior executives. p.38
Loss of senior management or key personnel to competitors could materially and adversely affect the business. p.38
The success of the business depends heavily on the continuing services of the Promoter, who has been the leader since inception. p.38
Insurance coverage may be inadequate to satisfy future claims against the company. p.40
The issue price of the Equity Shares may not be indicative of the market price after the issue, and the market price may decline below the issue price. p.42
The price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop after this Issue. p.43
The market price of the Equity Shares may fluctuate due to general economic and stock market conditions. p.48
The market price of the Equity Shares may fluctuate due to quarterly variations in the results of operations. p.48
The market price of the Equity Shares may fluctuate due to changes in expectations regarding future financial performance, including financial estimates by research analysts and investors. p.48
The market price of the Equity Shares may fluctuate due to announcements by the company or its competitors regarding acquisitions, strategic alliances, joint operations, or capital commitments. p.48
The market price of the Equity Shares may fluctuate due to announcements by third parties or governmental entities regarding claims or proceedings against the company. p.48
The market price of the Equity Shares may fluctuate due to new laws and governmental regulations applicable to the industry. p.48
The market price of the Equity Shares may fluctuate due to additions or departures of key management personnel. p.48
The market price of the Equity Shares may fluctuate due to changes in exchange rates. p.48
The market price of the Equity Shares may fluctuate due to the public's reaction to press releases, public announcements, and filings with the regulator. p.48
The market price of the Equity Shares may fluctuate due to additional investment or sale of investment by significant shareholders. p.48
Provisions in Indian law may delay, deter, or prevent a future takeover or change in control of the company. p.49
Total outstanding dues of micro and small enterprises were 131.74 in 31.03.2026, 78.91 in 31.03.2025, and 121.73 in 31.03.2024. p.53
A total demand of INR 3,47,98,590, including interest of INR 71,37,380, was received from the Income Tax Department for Assessment Year 2024–25. p.57
The company is in the process of filing a form 35 CIT(A) to dispute a tax liability of INR 13,49,694/- and interest of INR 15,84,373/-. p.57
Litigation and regulatory matters
Litigation
Court cases, tax disputes and regulatory proceedings involving the company, promoters and directors.
This section details various legal and regulatory proceedings involving the company and its related parties. It mentions a civil suit filed against the company, a criminal complaint, and a tax-related matter, along with a separate proceeding concerning a regulatory dispute.
This section details various legal and regulatory proceedings involving the company and its related parties. It mentions a specific civil suit filed against the company, a criminal complaint, and a tax-related matter. Furthermore, it discloses a regulatory proceeding concerning a disciplinary matter.
This section details various legal and regulatory proceedings involving the company and its related parties. It mentions a civil suit filed against the company, a criminal complaint, and a tax-related matter. Furthermore, it discloses a regulatory proceeding concerning a disciplinary issue.
This section details various legal and regulatory proceedings involving the company and its related parties. It mentions a civil suit filed against the company, a criminal complaint, and a tax-related proceeding. Furthermore, it discloses a regulatory proceeding concerning a specific matter, and a disciplinary proceeding against a director.
This section details various legal and regulatory proceedings involving the company and its related parties. It mentions a civil suit filed against the company, a criminal complaint, and a tax-related matter. Furthermore, there is a mention of a regulatory proceeding concerning a penalty imposed on the company.
This section details various legal and regulatory proceedings involving the company and its related parties. It mentions a specific civil suit filed against the company, a criminal proceeding, and a tax-related matter. Furthermore, it discloses a regulatory proceeding concerning a breach of statutory obligations.
This section details various legal and regulatory proceedings involving the company and its related parties. It mentions a specific civil suit filed against the company, a criminal complaint, and a tax-related proceeding. Furthermore, it discloses a number of pending cases across different categories.
The provided section primarily contains financial data summaries and management's discussion and analysis of financial conditions. It details the performance metrics for the company across three financial years, including revenue, net profit, EBITDA, and net worth. It also outlines various risks and uncertainties, such as changes in the regulatory framework, market and economic conditions, competition, and the ability of management to retain key personnel. Furthermore, it confirms that no material events have occurred after the last audited period.
This section details the restated financial statements for fiscal years ending March 31, 2026, March 31, 2025, and March 31, 2024, showing various components of revenue, expenses, and profit before and after tax. The analysis compares these years to assess changes in operations, including revenue growth, cost management, and the impact of various factors on profitability. The company provided assurances regarding the absence of unusual events, significant economic changes, known uncertainties, and future adverse relationships between costs and revenues.
This section primarily addresses the disclosure of outstanding litigation and material developments involving the Company, its Directors, or Promoters. It outlines the criteria used by the Board to determine 'Material Litigation,' which involves assessing the aggregate amount against various thresholds related to profit after tax, turnover, or net worth. The section also specifies that certain types of proceedings, such as criminal proceedings, actions by statutory or regulatory authorities, and tax matters, are specifically excluded from the scope of 'Material Litigation.' Furthermore, the company has a policy for identifying Material Outstanding Dues to Creditors based on SEBI (ICDR) Regulations.
The section details various regulatory and tax proceedings initiated against the Company, primarily concerning discrepancies in GST returns and Income Tax assessments. Several notices were issued by the GST authorities regarding mismatches in Input Tax Credit (ITC) and tax payments, with some proceedings pending for the taxpayer's reply. Furthermore, there are several outstanding demands and notices from the Income Tax Department across different Assessment Years, some of which have resulted in processing with refund due or have lapsed due to the expiry of response deadlines. The section also mentions a civil litigation involving the Company, which is a complaint under the Negotiable Instruments Act.
The section details various legal and tax proceedings involving the company's promoters and related entities. There are no civil or other material litigations initiated against the promoters as of the date of the DD Report. Several criminal proceedings were initiated against a group led by Abhishek Goyal, alleging fraud involving forged documents and misuse of company names, with significant monetary figures alleged. Furthermore, numerous Income Tax notices have been issued against entities, including the company itself and Puneet Arora & Sons (HUF), concerning various assessment years, including issues related to concealed income and share application money.
This section details numerous litigation and regulatory proceedings initiated against Paramount Dye Tec Limited across various assessment years, primarily concerning income tax matters. Several demands were raised under different sections of the Income Tax Act, including Section 143(1)(a) and 143(3), with significant outstanding amounts involving interest. Furthermore, penalty proceedings under various sections of the Income Tax Act were initiated for non-compliance with notices, and first appeal proceedings were pending before the Commissioner of Income Tax (Appeals). There are also numerous GST notices issued against the company for delayed filing of returns and issues related to inadmissible Input Tax Credit (ITC).
The company has obtained necessary consents, licenses, permissions, and approvals from various governmental and regulatory agencies for its business activities. These approvals cover aspects related to its incorporation, the issue process, and various licenses under Central and State Laws. The company has also received in-principle listing approval from the BSE SME Platform for the equity share issue. Furthermore, the company has entered into agreements for the dematerialization of its shares with the Central Depository Services (India) Limited and the National Securities Depository Limited. The text also confirms compliance with the Companies (Significant Beneficial Ownership) Rules, 2018, and makes several confirmations regarding the non-prohibition of promoters or directors by SEBI or other governmental authorities.
The section details the company's eligibility under various SEBI (ICDR) Regulations for an issue, including limits on post-issue paid-up capital and the proposed listing on the BSE SME platform. It confirms procedures related to the filing of the Red Herring Prospectus with SEBI and the underwriting arrangements with the Book Running Lead Manager. Furthermore, the text outlines various confirmations regarding the company's incorporation history, financial statements, and compliance with regulations concerning defaulters, winding-up petitions, and director conduct.
The section primarily discusses the process for listing the equity shares on the BSE SME Platform, including obtaining in-principle approval from BSE for using its name in offer documents. It outlines penalties for failure to complete listing formalities within prescribed timelines or for failing to allot equity shares. The text also details various consents obtained from directors, promoters, and various company officers, as well as agreements with the Statutory Auditors regarding tax benefits reports. Furthermore, it clarifies that the issue is an Initial Public Offer, and details regarding previous capital issues, outstanding debt, and investor grievances are provided.
This section primarily details the regulatory framework and terms related to the public issue of equity shares. It outlines that the equity shares will be subject to various laws and regulations, including the Companies Act, SEBI (ICDR) Regulations, and various SEBI circulars concerning the process. It also specifies the procedures for application, including the use of the ASBA process and the transition to the UPI mechanism for public issue. Furthermore, it discusses the authority for the issue, the ranking of equity shares, and the mode of payment for dividends.
This section primarily details various procedural aspects related to the issuance of equity shares, including restrictions on the transfer and transmission of equity shares, timelines for the issue process, and conditions for migration to the main board. It outlines the process for withdrawing the issue, the timeline for various events like bid/issue opening and closing dates, and the requirements for the company to migrate its equity shares to the main board based on financial and operational criteria.
This section primarily outlines various compliance and procedural requirements related to the company's listing and public issue process under SEBI regulations. It details track records concerning non-compliance, listing duration, public shareholder minimums, and requirements for certificates from auditors. It also covers rules regarding defaults, surveillance measures, business consistency, and audit qualifications. Furthermore, the text extensively discusses the rules for public issue, including allotment proportions for different investor categories (Individual, Non-Institutional Investors, QIBs), minimum application sizes, and various timelines and mechanisms related to the Unified Payments Interface (UPI) for payments in public issues.
The text details the phased introduction of the UPI payment mechanism for public issues, which was implemented in three phases with varying timelines for listing. Phase III, which is mandatory for issues opening on or after December 1, 2023, has reduced the time from public offer closure to listing from six working days to three working days. Specific requirements were laid out for investor grievance redressal under the UPI mechanism, including the appointment of a nodal officer and timely unblocking of funds. Furthermore, the company is required to appoint an SCSB as a sponsor bank to facilitate fund collection via UPI. Various rules govern who can bid, including eligibility criteria for different investor categories, and minimum application size requirements.
This section details various rules and restrictions concerning the bidding process for the equity shares, including limits on individual applications, procedures for bid submission, and specific rules for different investor categories. It outlines requirements for bid documentation, fund availability verification, and restrictions related to various investor types such as Mutual Funds, NRIs, FPIs, and various SEBI-registered funds. Furthermore, it specifies rules regarding the participation of associates, affiliates, and certain investment funds in the issue.
This section details various requirements and procedures related to bids and applications for the issue, categorized by the type of bidder (e.g., Limited Liability Partnerships, Banking Companies, Insurance Companies, etc.). It outlines documentation requirements, investment limits, and compliance with various regulations from different bodies like RBI and IRDAI. Furthermore, it specifies procedures for the application process, including the use of ASBA, the role of Self-Certified Syndicate Banks (SCSBs), and the process for allotment, including the handling of bid withdrawals and the finalization of the issue price.
This section primarily details various instructions and technical rejections related to the bid and allotment process for the equity shares, covering aspects such as bid validity, documentation requirements, and rules for different investor categories. It outlines specific rules regarding bid amounts, bid timing, submission methods, and the consequences for non-compliance, including issues related to mismatched investor details and fund blocking procedures.
This section details various provisions related to the allotment process, particularly concerning different investor categories like QIBs and Anchor Investors, and the procedures for handling oversubscribed issues. It outlines specific rules for proportionate allotment, the role of the Designated Stock Exchange in finalizing the basis of allotment, and procedures for issuing allotment advice and handling of bid funds. Furthermore, it includes undertakings by the company regarding the timely completion of listing formalities and the provision of funds for refunds.
This section primarily outlines various procedural requirements related to the issuance and allotment of equity shares, including conditions for refunding application monies, requirements for public notices if the issue is withdrawn, and stipulations regarding the utilization of issue proceeds. It details the process for handling various investor categories, including the structure of the issue, the rules for bid submission through different mechanisms like ASBA and UPI, and the allocation proportions for different investor segments.
The section primarily details various procedural aspects related to the withdrawal of an offer, the timeline for processing applications, and restrictions concerning foreign investment in Indian securities. It outlines the process for withdrawing an offer, the public notice requirements, and the conditions under which the offer can proceed. Furthermore, it discusses the regulatory framework governing foreign investment, including limits set by the Industrial Policy and FEMA, and restrictions on non-resident participation in the issue.
This section primarily details various provisions related to the issuance, transfer, and lien rights concerning the company's shares and certificates. It outlines procedures for issuing certificates, handling damaged or lost certificates, and the rights of members regarding their shares. Furthermore, it covers provisions related to the company's power to exercise commissions, the rights attached to different classes of shares, and various rules concerning the payment of calls on shares, including interest accrual and forfeiture procedures.
This section primarily details various procedural and governance aspects related to the Board of Directors, including remuneration, meeting conduct, and the delegation of powers. It outlines rules regarding the signing of instruments, the appointment of additional directors, and the powers of the Board and committees. Furthermore, it lists numerous material contracts and documents that are subject to inspection, including agreements with various financial and regulatory entities, as well as necessary corporate filings and financial statements.
This section primarily consists of declarations by the company's directors affirming compliance with various laws and regulations. The declarations certify that the statements made in the Draft Red Herring Prospectus adhere to the provisions of the Companies Act, 2013, the Securities and Exchange Board of India Act, 1992, and related guidelines issued by the Government of India or the Securities and Exchange Board of India.
The provided section consists solely of declarations from the Chief Financial Officer and the Company Secretary affirming compliance with various provisions of the Companies Act, 2013, and guidelines issued by the Government of India or the Securities and Exchange Board of India (SEBI). These declarations certify that no statement in the Red Herring Prospectus contradicts these laws or regulations, and that all statements made in the prospectus are true and correct.
Revenue from operations for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024 were 12,202.99, 11,241.79, and 9,277.86 (in Rs. lakhs respectively). p.261p.265
Net Profit as Restated for the respective years were 1,386.82, 672.83, and 134.72 (in Rs. lakhs respectively). p.261p.265
The company's financial statements have been prepared in accordance with Indian GAAP, the Companies Act, and the SEBI (ICDR) Regulations. p.263
The company has secured all necessary regulatory approvals to operate its business, although some are time-bound and require periodic renewal. p.264
The business is subject to risks including changes in the regulatory framework, market and economic conditions, and competition. p.264
The company's business is exposed to uncertainty from unexpected events such as pandemics, wars, climate changes, and supply chain disruptions due to globalized markets. p.264
The ability of management to retain senior management or attract new senior management is a risk due to intense competition in the industry. p.264
No material events have occurred after the last balance sheet date of March 31, 2026. p.264
Revenue from operations for the financial year 2025-26 stood at ₹ 12,202.99 Lakhs, compared to ₹ 11,241.79 Lakhs in the financial year 2024-25, representing an increase of 8.55%. p.266
Other income for the financial year 2025-26 was ₹ 48.35 Lakhs, compared to ₹ 30.63 Lakhs in the financial year 2024-25, representing an increase of 57.83%, due to a reduction in interest on FDR. p.267
Total expenses for the financial year 2025-26 increased to ₹ 10,336.78 Lakhs from ₹ 10,354.30 Lakhs in the financial year 2024-25, showing a marginal decrease of 0.17%. p.268
Cost of material consumed decreased for the financial year 2025-26 to ₹ 9,148.25 Lakhs from ₹ 9,306.18 Lakhs in the financial year 2024-25, a decrease of 7.81%, due to improvements in the cost structure. p.268
Employee benefits expense increased for the financial year 2025-26 to ₹ 364.83 Lakhs as compared to ₹ 320.50 Lakhs in the financial year 2024-25, an increase of 13.83%, due to increased overall employee costs. p.268
Finance cost increased for the financial year 2025-26 to ₹ 300.47 Lakhs as compared to ₹ 276.62 Lakhs in the financial year 2024-25, an increase of 8.62%, attributed to an increase in term loan. p.268
Depreciation and Amortization Expenses increased for the financial year 2025-26 to ₹ 206.34 Lakhs as compared to ₹ 161.19 Lakhs in the financial year 2024-25, an increase of around 28.01%. p.268
Other Expenses increased for the financial year 2025-26 to ₹ 316.89 Lakhs as compared to ₹ 289.80 Lakhs in the financial year 2024-25, with increases in Legal & Professional Expenses, CSR Expense, and Other Establishment Expenses. p.268
Net profit before tax for the financial year 2025-26 increased to ₹ 1,914.56 Lakhs as compared to ₹ 918.12 Lakhs in the financial year 2024-25, an increase of 108.53%, due to various factors mentioned. p.268
Net profit after tax for the financial year 2025-26 increased by 106.12% from a net profit of ₹ 672.83 Lakhs in the financial year 2024-25 to ₹ 1,386.82 Lakhs in the financial year 2025-26. p.268
There have been no unusual or infrequent events or transactions in the company's business activity. p.270
There are no significant economic changes that may materially affect or are likely to affect income from continuing operations. p.270
There are no known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations, apart from those disclosed in the Risk Factors section. p.270
No other segment reporting is followed beyond what is disclosed in the Restated Financial Statements on page 208. p.270
The company has not announced any new product or service except as disclosed in the Chapter “Our Business” on page 149 of this Red Herring Prospectus. p.270
The company is engaged in the business of fibre processing and textile manufacturing and its business is not seasonal. p.270
The largest customer contributed ₹ 1,039.57 Lakhs in the financial year Mar-26, representing 8.52% of the revenue, compared to ₹ 1,088.92 Lakhs in Mar-25, representing 9.69% of the revenue. p.270
There are no Criminal Proceedings initiated against the Company as of the date of the RHP. p.275
There are no actions taken by statutory or regulatory authorities initiated against the Company as of the date of the RHP. p.275
Tax proceedings were initiated against Paramount Syntex Limited with a GST notice issued to a return defaulter under section 46. p.275
A system-generated notice in Form GST DRC-01C was issued regarding an ITC mismatch, proposing a demand of ₹1,10,76,756.94. p.276
A system-generated notice in Form GST DRC-01B was issued for a liability mismatch, proposing a demand of ₹1,10,76,762.74. p.276
A notice pertaining to a liability mismatch for the January 2026 tax period highlighted a discrepancy between tax reported in GSTR-1 and paid in GSTR-3B. p.276
The Office of the Superintendent, CGST Range-IV, Division-East, Ludhiana, issued a scrutiny notice for the period April 2021–February 2022, identifying excess ITC claimed in GSTR-3B over GSTR-2B, a short payment of ₹17,93,463, and a mismatch between E-Way Bill and GSTR-3B. p.276
A Show Cause Notice in Form GST DRC-01 was issued proposing a total demand of ₹87,15,482, comprising tax and equivalent penalty. p.277
A Demand-cum-Show Cause Notice in Form GST DRC-01 was issued for the Financial Year 2021–22, alleging a short payment of CGST and SGST amounting to ₹18,92,534. p.277
A notice in Form GST ASMT-10 highlighted discrepancies for FY 2021-22, including excess availment of IGST Input Tax Credit of ₹24,65,207.28 and a short payment of tax of ₹17,93,463. p.277
The department proposed recovery of disputed tax amounting to ₹43,57,741, including IGST, CGST, and SGST components. p.277
A defective return notice under Section 139(9) for A.Y. 2017-18 was issued, which was processed with a refund due. p.279
An adjustment notice under Section 143(1)(a)(iv) for A.Y. 2025–26 proposed an adjustment of ₹12,67,480 due to variance between claimed and reported expenditure. p.279
A civil litigation was filed by M/s Paramount Syntex Pvt. Ltd. against M/s Johar Karyana Store for the dishonor of two cheques totaling ₹1.98 crore. p.280
No Civil and other Material Litigations were initiated Against Promoters. p.281
Criminal proceedings were initiated by Promoters against a group alleging fraud, including the use of fake websites, forged agreements, and misuse of bank statements, with alleged money flows totaling approximately ₹10.9 crore routed through various firms. p.281
A consolidated table in the complaint records funds routed to various entities, including Pragati Industries, Johar Karyana Store, Shree Balaji Agencies, Kaur Sain & Sons, and Haider Industries, with a grand total shown around ₹10,91,40,790. p.281
The FIR alleges a fraud involving over ₹20 crore through forged vendor agreements, fake bank statements, sham rent deeds, and misuse of Future Retail/Reliance names. p.281
The Commissioner of Police directed registration of the case under IPC sections including 406, 420, 465, 467, 468, 471, 120B and relevant sections of the IT Act. p.281
In CHI/1988/2025, accused Shubham Kumar and Bhagwan Dass were on bail, with exemption granted to Bhagwan Dass on 03.07.2026. p.281
Punit Arora filed a petition against the State of Punjab seeking to cancel a fresh re-investigation order and direct the police to file the final report based on an SIT report. p.282
A second inquiry report added key names like Rohit, Kanika, Ritu, Naveen, and Sukhdev as accused in the FIR. p.282
The petitioners requested the High Court to quash a second inquiry report and a General Diary entry, arguing that multiple or parallel police inquiries are not allowed. p.282
Who runs and controls the company
Management & board
Directors and senior management: who they are, their background and pay.
The management section details the composition of the Board of Directors, which consists of six directors, including one Chairman and Managing Director, one Whole Time Director, one Executive Director & CFO, and three Non-Executive Independent Directors. The document lists the particulars for Punit Arora, Kumkum Arora, Sharad Kumar Srivastava, Mohit Bedi, Manish Chhabra, and Shilpi Jain, including their designations, tenure, and other directorships. Various confirmations are provided regarding arrangements with major shareholders, service contracts, and declarations against the directors. Furthermore, details regarding borrowing powers and remuneration for the Managing Director are disclosed.
The section details the remuneration structure for the company's directors, including specific salary and incentive benefits. Kumkum Arora is noted as a Whole Time Director whose designation was changed on July 19, 2024, and subsequently regularized. Remuneration details are provided for the upcoming financial years, showing payments to Punit Arora, Kumkum Arora, and Sharad Kumar Srivastava. Furthermore, the text outlines various provisions regarding the interest of directors, shareholding, and the policies adopted by the company.
The management structure involves several committees, including the Audit Committee, Stakeholders’ Relationship Committee, Nomination and Remuneration Committee, and the Corporate Social Responsibility Committee, all constituted pursuant to relevant sections of the Companies Act, 2013. Key managerial personnel and senior management personnel are detailed, including the Chairman & Managing Director, the Company Secretary, the Chief Financial Officer, and various senior managers. The document outlines various policies regarding insider trading, compensation, and the relationship between key personnel and the company.
Key points (41)
The company has 6 Directors on the Board, with 1 as Chairman and Managing Director, 1 Whole Time Director, 1 Executive Director & CFO, and 3 Non-Executive Independent Directors. p.182
Shilpi Jain is an Independent Director who has been appointed as a Non-Executive Independent Director for a period of 5 years with effect from July 19, 2024. p.184
Punit Arora is the Chairman and Managing Director and has been on the board since 2008. p.185
Kumkum Arora is the Whole Time Director and has been on the Board since 2020. p.185
Sharad Kumar Srivastava is the Director and Chief Financial Officer and has been on the Board since 2016. p.185
Mohit Bedi is an Independent Director who has been on the board since 2024. p.185
Manish Chhabra is an Independent Director who has been on the board since 2024. p.185
The Board of Directors is authorized to borrow monies from time to time, with or without security, up to an aggregate of 25,000.00 Lakhs. p.186
The Managing Director is entitled to a salary up to ₹1,00,0/- (Rupees One Crores Only) per annum for a five-year tenure starting July 19, 2024. p.186
The Managing Director is entitled to basic salary, perquisites, and allowance as specified above. p.187
Kumkum Arora was appointed as an Additional Director on July 24, 2020, and regularized in an EGM dated September 20, 2022. p.187
Kumkum Arora's designation was changed to Whole Time Director in a Board meeting dated July 19, 2024, and approved by shareholders in an Extra Ordinary General Meeting dated July 23, 2024 for a five-year period. p.187
Remuneration for a five-year tenure for the Whole-Time Director is set up to be up to ₹1,00,0/- per annum. p.187
The gross remuneration paid for F.Y. 2025-26 includes payments for Punit Arora, Kumkum Arora, and Sharad Kumar Srivastava. p.187
The Non-Executive Independent Directors are entitled to a sitting fee of ₹25,000/- for attending every meeting of the Board and its committees. p.187
Punit Arora holds 88.51% of the Pre-Issue Capital and 88.51% of the Post-Issue Capital. p.188
Sharad Kumar Srivastava holds a negligible amount of Equity Shares. p.188
Kajal Rai resigned as the Independent Director on October 31, 2024. p.189
Shilpi Jain was appointed as an Additional Independent Director on July 19, 2024. p.189
Mohit Bedi was appointed as an Additional Non-Executive Independent Director on August 07, 2024. p.189
Manish Chhabra was appointed as an Additional Non-Executive Independent Director on October 22, 2024. p.189
The Board has constituted an Audit Committee vide a Board Resolution dated October 23, 2024, in accordance with Section 177 of the Companies Act, 2013. p.190
Mohit Bedi is a Non-Executive Independent Director and a member of the Audit Committee. p.190
Sharad Kumar Srivastava is an Executive Director & CFO and a member of the Audit Committee. p.190
Manish Chhabra is a Non-Executive Independent Director and the Chairman of the Audit Committee. p.190
The Audit Committee shall meet at least four times in a year and not more than one hundred and twenty days shall elapse between two meetings. p.192
Punit Arora is the Chairman & Managing Director of the Company and Kumkum Arora is the Whole Time Director of the Company. p.195
Sharad Kumar Srivastava is the Director and Chief Financial Officer of the Company, with over 29 years of finance experience. p.195
Bharti Singh is the Company Secretary and Compliance Officer, responsible for compliance and guiding the Board on applicable laws. p.195
Vikas Aggarwal is the Marketing Head with extensive experience in the textile industry, specializing in strategic marketing planning and brand management. p.195
Dinesh Kumar is the Procurement Head with over 5 years of experience in the textile manufacturing industry, leading procurement operations. p.195
All Key Managerial Personnel and Senior Management Personnel are permanent employees of the Company. p.195
Sharad Kumar Srivastava holds 10 Negligible shares of the pre-issue capital and negligible shares of the post-issue capital. p.195
The Key Managerial Personnel and Senior Management Personnel have not entered into any other contractual arrangements or service contracts with the issuer except as detailed in appointment letters. p.195
The Company does not have any bonus/profit sharing plan for the Key Managerial Personnel, but provides performance linked bonus payments according to their terms of appointment. p.196
The Company does not have an employee stock option scheme as on the date of this Red Herring Prospectus. p.196
Bharti Singh was appointed as Company Secretary and Compliance Officer on March 21, 2024. p.196
Sharad Kumar Srivastava was appointed as Chief Financial Officer on October 11, 2023. p.196
Kumkum Arora's designation was changed to Whole-Time Director on July 19, 2024, and then regularized as Whole-Time Director on July 23, 2024. p.196
Punit Arora's designation was changed to Managing Director on July 19, 2024, and then regularized as Managing Director on July 23, 2024. p.196
The attrition of Key Managerial Personnel is not high in the Company compared to the industry. p.196
Promoters
The people or entities controlling the company, and what else they own.
The promoters of the company are Punit Arora and Kumkum Arora. Together, they hold an aggregate of 1,09,71,678 Equity Shares, which represents 91.74% of the pre-issued, subscribed, and paid-up Equity Share capital. Punit Arora is listed as the Managing Director, and Kumkum Arora is a Whole Time Director. The document details various aspects of the promoters' relationship, shareholding, and interests in other entities. The promoters have made undertakings regarding their compliance with regulatory requirements and have not been prohibited or debarred from accessing the capital market.
The company identified several 'Group Entities' including Paraspin Impex Private Limited, Paramount Dye Tec Limited, Welldone Cottex Private Limited, and PSPL Dyers and Processors Private Limited. Details for these entities, such as incorporation dates and directors, are provided. The text confirms that the financial information for these group companies is available on www.paramountsyntex.com. Furthermore, the document assures that the promoters and the company have not been declared willful defaulters by the RBI or other governmental authorities, nor are any securities law violations pending against them. It also states that no such entities have been declared sick companies or faced winding-up proceedings.
This section details various financial transactions and relationships between the company and several parties, including directors and related entities. It outlines transactions such as loans advanced, recovered, and repayments, as well as various trade advances and receivables. The data covers financial performance across the years 2026, 2025, and 2024 for different accounts. Furthermore, the section includes a policy statement regarding dividend payments, clarifying that dividends are subject to board recommendations, shareholder approval, and various financial considerations, and that no dividends have been paid in the last three years.
Key points (33)
Punit Arora's shareholding includes entities like Punit Arora & Sons (HUF), Ramesh Arora & Sons (HUF), K K Impex, and Winning Industries. p.200
Punit Arora is interested in Body Corporates such as PSPL Dyers and Processors Private Limited, Paraspin Impex Private Limited, Paramount Dye Tec Limited, and Welldone Cottex Private Limited. p.201
Paraspin Impex Private Limited is a Group Entity. p.202
Directors of Paraspin Impex Private Limited include Punit Arora and Kumkum Arora. p.202
Paramount Dye Tec Limited is a Group Entity. p.202
Directors of Paramount Dye Tec Limited include Kunal Arora, Palki Arora, Rupesh, Bhupesh, Prabir Singh, and Divya. p.203
Welldone Cottex Private Limited is a Group Entity. p.203
PSPL Dyers And Processors Private Limited is a Group Entity. p.203
Promoters and the Promoter Group have confirmed they have not been declared willful defaulters by the RBI or any other governmental authority. p.204
No proceedings pertaining to securities law violations are pending against the promoters. p.204
No promoters have been restrained from accessing the capital markets by SEBI or other authorities. p.204
No Promoter Group Entities have been declared as a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985. p.205
No winding up proceedings are pending against the Promoter Group Entities. p.205
No disassociation by the promoters from any companies has occurred during the preceding three years. p.205
There are no sale purchases between the Company and Group Entities except as mentioned in Annexure 28 Related Party Disclosures. p.205
Ranjana Arora is a relative of a Director and has a salary transaction recorded for the year ended March 31st. p.207
Punit Arora is a Managing Director involved in loan transactions, including advances, recoveries, and repayments. p.207
KumKum Arora is a Whole Time Director involved in loan transactions, including advances, recoveries, and repayments. p.207
Transactions involving Paramount Dye tec Group Firm include rent expenses, sales, and purchases. p.207
Punit Arora HUF is a relative of a Director and has interest paid transactions recorded. p.207
Transactions with Winning Industries Associate Firm include sales and other advances against suppliers and capital goods. p.207
Transactions with Paraspin Impex Private Limited include trade advances against suppliers and purchases. p.207
Outstanding balances show trade payable amounts with Paraspin Impex Private Limited. p.208
KumKum Arora Whole Time Director has other advances recorded. p.208
Transactions involving Punit Arora include unsecured loan transactions. p.208
Punit Arora HUF Relative of a Director has unsecured loan transactions. p.208
Ramesh Arora is a relative of a Director and has unsecured loan transactions. p.208
Transactions with KK Impex Proprietorship include purchases and sales. p.208
Transactions with KK Impex Proprietorship include other trade advances against suppliers and capital goods. p.208
Manish Chhabra is an Independent Director with director sitting fees recorded. p.209
Transactions with Winning Industries Associate Firm include trade receivable. p.209
Transactions with Paramount Dye tec Group Firm include trade payable. p.209
Transactions with PSPL Dyers and Processors Private Limited include investment. p.209
Updates since the first filing
Addenda, corrigenda and the abridged prospectus, newest first.
No amendments or updates have been filed yet. They will appear here as SEBI publishes them, on this same page.
Paramount Syntex Limited IPO: common questions
Short answers drawn from the filings above.
How big is the Paramount Syntex Limited IPO?
Paramount Syntex Limited's IPO comprises a fresh issue of 64,40,000 shares, according to its Red Herring Prospectus. The price band is ₹119.00 to ₹127.00 per share.
What are Paramount Syntex Limited's revenue and profit?
Paramount Syntex Limited reported revenue from operations of ₹122 Cr in FY26, +8.6% versus FY25. Net profit was ₹14 Cr (FY25: ₹6.7 Cr). Revenue grew at a compound rate of 14.7% a year from FY24 to FY26. Figures are read from the RHP, as printed there.
How much do promoters own in Paramount Syntex Limited?
Promoters hold 91.7% of Paramount Syntex Limited before the IPO. Largest holders listed: Punit Arora (88.5%); Kumkum Arora (3.2%).
How will Paramount Syntex Limited use the IPO money?
The fresh-issue proceeds are earmarked for: Funding of capital expenditure requirements of our Company towards purchase of Machinery at existing facilities. (₹62 Cr); General corporate purposes (amount not fixed yet).
What are the red flags in Paramount Syntex Limited's RHP?
We fact-checked 32 claims from the filing against the open web: 0 raised a high concern, 0 medium and 0 low. This is an automated screen, not a verdict; each finding links to its sources.
What does Paramount Syntex Limited do?
Here’s a detail about the IPO of Paramount Syntex that almost nobody noticed: there’s zero public record confirming Kumkum Arora’s appointment or regularization as an Additional Director in the company.
Who manages the Paramount Syntex Limited IPO?
Book running lead managers: SOBHAGYA CAPITAL OPTIONS PRIVATE LIMITED. Registrar to the offer: U74899DL1994PTC060089 BIGSHARE SERVICES PRIVATE LIMITED. Shares are proposed to list on BSE.
Where can I read the original Paramount Syntex Limited IPO documents?
All 1 filing for Paramount Syntex Limited (RHP) are listed on this page with links to the original PDFs on SEBI's website. Every page reference cites the exact page of the source document.
Source documents
Every page reference on this site links to the original SEBI PDF.
