Paramount Syntex IPO Fully Subscribed; QIB Portion Booked 119 Times

Paramount Syntex Limited’s SME IPO moved past the full-subscription mark on the second day of bidding, driven largely by heavy demand from Qualified Institutional Buyers (QIBs). As of 5 PM on October 1, 2026, the issue was subscribed about 1.35 times, with bids for approximately 82.39 lakh shares against the 61.17 lakh shares available in the net issue.

The strongest response came from the QIB category. Against an allocation of just 66,000 shares, institutional investors placed bids for around 78.73 lakh shares, taking the QIB portion to 119.29 times subscription. At the upper price band of Rs 127 per share, these bids are worth nearly Rs 100 crore, exceeding the value of the entire Rs 81.79 crore IPO.

The institutional demand has helped the offer cross the overall subscription mark well before bidding closes on October 6. Participation from the other investor categories remained relatively subdued in the early stages, making QIB demand the main factor behind the IPO’s subscription so far.

Paramount Syntex enters the primary market after a sharp improvement in profitability over the past two financial years. Revenue from operations increased to approximately Rs 122.03 crore in FY26 from Rs 112.42 crore in FY25 and Rs 92.78 crore in FY24. Growth at the bottom line was much stronger, with profit after Tax rising to Rs 13.87 crore in FY26 from Rs 6.73 crore a year earlier and Rs 1.35 crore in FY24. PAT therefore more than doubled in FY26 alone.

Margins have improved alongside earnings. EBITDA increased to approximately Rs 23.59 crore in FY26 from Rs 13.17 crore in FY25 and Rs 9.45 crore in FY24. The EBITDA margin expanded to 19.33 per cent from 11.71 per cent in FY25 and 10.19 per cent in FY24. The PAT margin also improved sharply to 11.36 per cent in FY26, compared with 5.99 per cent in FY25 and 1.45 per cent in FY24.

Incorporated in 1996, Paramount Syntex manufactures synthetic fibres, dyed fibres and a range of yarn products, including acrylic, polyester, wool, nylon and blended yarns. Its manufacturing facilities are located at Village Mangarh, Machiwara Road, Kohara in Ludhiana, Punjab. The company has an integrated manufacturing setup covering fibre processing, tow dyeing, hank dyeing, spinning, bulking, twisting and packing.

A large part of the IPO proceeds is intended to strengthen this manufacturing base. Paramount Syntex plans to deploy approximately Rs 61.68 crore towards the purchase of machinery at its existing facilities, with the remaining net proceeds earmarked for general corporate purposes. The IPO is entirely a fresh issue, with no Offer for Sale component, meaning the capital raised will flow into the company rather than towards a sale by existing shareholders.

The size of the planned machinery investment makes capacity expansion one of the central themes of the issue. The proposed capital expenditure accounts for a substantial portion of the funds being raised and is aimed at adding machinery to the company’s existing manufacturing operations.

Paramount Syntex is offering 64.40 lakh fresh shares in a price band of Rs 119 to Rs 127 per share, taking the total issue size to approximately Rs 81.79 crore at the upper end. Of the total offer, 3.23 lakh shares are reserved for the market maker, leaving a net issue of 61.17 lakh shares, valued at approximately Rs 77.69 crore at Rs 127 per share.

The lot size is 1,000 shares, although the minimum application for an individual investor is 2,000 shares, or two lots. At the upper price band of Rs 127, the minimum investment works out to approximately Rs 2.54 lakh.

The IPO opened on September 30, 2026 and will close on October 6, 2026. The basis of allotment is expected to be finalised on October 7, followed by refunds and credit of shares on October 8. Paramount Syntex is tentatively scheduled to list on the BSE SME platform on October 9, 2026.

Disclaimer: The article is for informational purposes only and not investment advice.