Paramount Syntex IPO
Paramount Syntex LtdSME
This IPO opens on 30 Sep 2026.
- Open date
- 30 Sep 2026
- Close date
- 6 Oct 2026
- Min. Investment
- ₹2,54,000
- Lot Size
- -
- Fresh Issue
- ₹81.79 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- DRHP - PDF(opens in a new tab)
Subscription rate
- Qualified Institutional Buyers0.00x
- Non-Institutional Investors0.00x
- Retail-Individual Investors0.00x
- Total0.00x
Schedule
- Current step: IPO open date30 Sep 2026
- Upcoming: IPO close date6 Oct 2026
- Upcoming: Allotment date7 Oct 2026
- Upcoming: Funds unblock or debit8 Oct 2026
- Upcoming: Tentative listing date9 Oct 2026
About
Promoter shareholding in Paramount Syntex Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Punit Arora | 0 | 0.00% | 0 | 0.00% |
| Punit Arora | 1,05,85,728 | 88.51% | 1,05,85,728 | 57.53% |
| Kumkum Arora | 3,85,950 | 3.23% | 3,85,950 | 2.10% |
| Kumkum Arora | 0 | 0.00% | 0 | 0.00% |
| Ranjana Arora | 10 | 0.00% | 10 | 0.00% |
Paramount Syntex IPO Strengths & Risks
- Experienced Promoter and Management Team.
- Scalable Business Model.
- Wide and diverse range of product offerings.
- In-house manufacturing facility with equipped machines and processes. Further having in-house Quality Control and Research & Development facility.
- Risks Relating to the Business: The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company's business, reputation and results of operations.
- Risks Relating to the Business: The company's business is dependent and will continue to depends on its manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company's manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
- Risks Relating to the Business: Majority of the company's revenue is dependent on single business segment i.e. manufacturing and trading of fiber, yarns and knitted cloth. Any adverse impact on sales of a product would adversely affect its operations and profitability.
- Risks Relating to the Business: The top ten customers of the company's product and top ten suppliers for raw material contribute a substantial part of its total revenue and source of Raw Material. The company does not have long term agreement with the customer or supplier. The loss of any Customer or a decrease in the volume of order by any customer or any disruption in supply of raw material by any supplier may adversely affect its revenues and profitability.
- Risks Relating to the Business: Certain assumptions have been made in the absence of historical data from 1996 to 2006; variations in Capital Structure and other factors could impact the accuracy of the RHP and affect Investment Decisions.
- Risks Relating to the Business: The Company is yet to place orders for 100% of the plant & machineries for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay the company's implementation schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and profitability.
- Risks Relating to the Business: Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 85 of this Red Herring Prospectus, the fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.
- Risks Relating to the Business: There are certain discrepancies and non-compliances noticed in some of the company's corporate records relating to forms filed with taxation authorities and other public authorities.
- Risks Relating to the Business: The Company has a negative cash flow in its operating, investing activities and Net Increase / Decrease in Cash & Cash Equivalents for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024 details of which are given below. Sustained negative cash flow could impact its growth and business.
- Risks Relating to the Business: Non-recovery of business advances may adversely impact the Company's financial position and cash flows.
- Risks Relating to the Business: There are certain discrepancies and non-compliances noticed in some of the company's statutory compliances reporting and/or records relating to filing of returns with the concerned Registrar of Companies.
- Risks Relating to the Business: Since the Company was incorporated on March 08, 1996, certain documents were not available during the physical inspection at the Registrar of Companies (RoC). Accordingly, the Book Running Lead Manager (BRLM) has relied on backup documents provided by the Company, including minutes of meetings and statutory registers, for the purpose of preparing this chapter.
- Risks Relating to the Business: High trade receivables may strain its liquidity and expose the company to increased credit risk.
- Risks Relating to the Business: The company is heavily dependent on machinery for its operations. Any break-down of the company's machinery will have a significant impact on its business, financial results and growth prospects.
- Risks Relating to the Business: High Geographical Concentration of the company's Business in Punjab and Limited Presence in Other States Could Adversely Affect its Results.
- Risks Relating to the Business: The company faces competition in its business from organized and unorganized players, which may adversely affect the company's business operation and financial condition.
- Risks Relating to the Business: If the company is unable to predict customer demands and maintain optimum inventory level there may be an adverse effect on its results of operations, financial condition, and cash flows.
- Risks Relating to the Business: The company's business operations are currently concentrated in a single region, i.e., Ludhiana, Punjab and the inability to operates and grow its business in this particular region may have an adverse effect on the company's business, financial condition, results of operations, cash flows and future business prospects.
- Risks Relating to the Business: Orders placed by customers may be delayed, modified, cancelled or not fully paid for by the company's customers, which may have an adverse effect on its business, financial condition and results of operation.
- Risks Relating to the Business: The company's business and the demand for its product is reliant on the success of the company's customers products with end consumers, and any decline in the demand for the end-products could have an adverse impact on its business, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company's Registered Office, head office, Factory unit and godown from where the company operates, have been acquired on lease basis from its Promoter, third party and Group Company. There can be no assurance that the lease agreements will be renewed upon termination or that the company will be able to obtain other premises on lease on same or similar commercial terms.
- Risks Relating to the Business: The average cost of acquisition of Equity shares by the company's Promoters is lower than the Issue price. Its promoters average cost of acquisition of Equity shares in the Company is lower than the Issue Price of Equity shares as given below.
- Risks Relating to the Business: The Company has a negative cash flow in its operating, investing activities and Net Increase / Decrease in Cash & Cash Equivalents for the period ended financial years ended March 31, 2026, March 31, 2025, and March 31, 2024 details of which are given below. Sustained negative cash flow could impact the company's growth and business.
- Risks Relating to the Business: The company's business is highly dependent on technology and any disruption or failures of its technology systems may affect the company operations.
- Risks Relating to the Business: The company has significant power requirements for continuous running of its factories. Any disruption to the company operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.
- Risks Relating to the Business: The company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on the company's business, financial condition and results of operations.
- Risks Relating to the Business: The company's success depends in large part upon its qualified personnel, including the company's senior management, directors and key personnel and its ability to attract and retain them when necessary.
- Risks Relating to the Business: Any failures in the company's quality control and procurement process may adversely affect its business, results of operations and financial condition.
- Risks Relating to the Business: The company has been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.
- Risks Relating to the Business: The company's success largely depends upon the knowledge and experience of its Promoters, Directors, the company's Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of the company's Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect the company's business, financial condition and results of operations.
- Risks Relating to the Business: The company has to update the name of its in some of the statutory approvals and certificates due to the Change in the name upon conversion of the Company in to Public Limited Company.
- Risks Relating to the Business: The company's ability to maintain its competitive position and to implement the company's business strategy is dependent to a significant extent on its senior management team and other key personnel, in particular, the company's Promoters.
- Risks Relating to the Business: The company's business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failures to obtain and renew them in a timely manner may adversely affect the company's business operations.
- Risks Relating to the Business: In addition to normal remuneration, other benefits and reimbursement of expenses to the company's Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the company and its Group Company / Entities.
- Risks Relating to the Business: The company's inability to successfully implement some or all its business strategies in a timely manner or at all could have an adverse effect on the company's business. Further, its inability to effectively manage any of these issues may adversely affect the company's business growth and, as a result, impact its businesses, financial condition and results of operations.
- Risks Relating to the Business: If the company is unable to manage its growth effectively and further expand into new markets the company's business, future financial performance and results of operations could be materially and adversely affected.
- Risks Relating to the Business: Risks Relating to capital expenditure estimates, foreign currency exposure and implementation.
- Risks Relating to the Business: The company has entered into certain transactions with related parties. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.
- Risks Relating to the Business: The company's Promoters, Directors and Key Managerial Personnel may have interest in the Company, other than reimbursement of expenses incurred or remuneration.
- Risks Relating to the Business: The company's insurance coverage may be inadequate to satisfy future claims against the company.
- Risks Relating to the Business: The company's Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- Risks Relating to the Business: The issue price of the Equity Shares may not be indicative of market price of the company's equity shares after the issue and the market price of its Equity shares may decline below the issue price.
- Risks Relating to the Business: The company's ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Risks Relating to the Business: The company has not independently verified certain data in this Red Herring Prospectus.
- Risks Relating to the Business: The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.
- Risks Relating to the Business: Certain information contained in this Red Herring Prospectus is based on management estimates and the company cannot assure you of the completeness or accuracy of the data.
- Risks Relating to the Business: Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders approval.
- Risks Relating to the Business: Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by the company's Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Risks Relating to the Business: The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.
- Risks Relating to the Business: QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
