A synthetic fibre and yarn maker with a manufacturing facility in Ludhiana, Punjab is raising Rs 81.79 crore through a BSE SME issue.
Paramount Syntex manufactures synthetic fibres, various kinds of yarn and textile products, mainly for the textile industry.
The company was incorporated in 1996 and converted into a public limited company in 2024. Its manufacturing facility is at Village Mangarh, Machiwara Road, Kohara, Ludhiana, Punjab, across two units totalling about 7,268.73 sq. yards.
Its manufacturing process covers raw-material selection, cleaning, drying, blending, spinning, winding and quality checks, and it has its own research team working on product quality and customer requirements.
Besides yarn, the company produces acrylic fibre from waste fibre, which it sources in India and imports from Thailand. Its operations include acrylic fibre, dyed fibre and yarn production, supported by in-house dyeing, spinning, bulking and packing.
Acrylic and wool yarns made up 60.58% of revenue from operations in FY26. All sales that year were domestic, with Punjab contributing 90.64%.
The company derives its entire revenue from a single segment: manufacturing and trading fibre, yarn and knitted cloth. It also takes on trading opportunities alongside manufacturing.
PSL holds ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015 certifications and is a Good Manufacturing Practice (GMP) certified organisation. As of March 31, 2026, it had 355 employees on its payroll.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 30, 2026 |
| Issue Closes | October 6, 2026 |
| Allotment (expected) | October 7, 2026 |
| Listing | BSE SME |
| Listing Date (tentative) | October 9, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 119 – Rs 127 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 81.79 crore (64,40,000 shares, entirely fresh) |
| Lot Size | 1,000 shares |
| Min. Retail Application | 2,000 shares (2 lots) |
| Min. Retail Investment | Rs 2,54,000 |
| Post-IPO Market Cap | Rs 233.67 crore |
| IPO as % of Post-IPO Capital | 35.00% |
| Lead Manager | Sobhagya Capital Options Pvt Ltd |
| Market Maker | MNM Stock Broking Pvt Ltd |
| Registrar | Bigshare Services Pvt Ltd |
| Underwriting | 15% Sobhagya Capital Options, 85% MNM Stock Broking |
From the net proceeds, PSL will use Rs 61.68 crore for capex on machinery for its existing facility and the rest for general corporate purposes. The machinery will add spinning and dyeing capacity at the Ludhiana facility and increase the use of recycled fibre in its products.
Post-IPO, paid-up equity capital rises from Rs 11.96 crore (1,19,59,382 shares) to Rs 18.40 crore (1,83,99,382 shares).
After its initial issue at par, the company issued shares at Rs 61 to Rs 200 per share between March 2013 and May 2024, and issued 30:1 bonus shares in March 2024. The promoters’ average acquisition costs are Rs 2.16 and Rs 6.45 per share.
Price Band
At the Rs 127 upper band, with FY26 earnings attributed to the fully diluted post-IPO equity, the issue is valued at a P/E of 16.84x, or 34.70x on FY25 earnings. The P/BV is 3.56 on the March 31, 2026 NAV of Rs 35.68, and 1.88 on the post-IPO NAV of Rs 67.64. The post-IPO market cap is Rs 233.67 crore.
Analysts consider the issue aggressively priced and are saying avoid.
GMP
The Paramount Syntex IPO GMP is ₹0. That indicates a listing price of ₹127, flat to the upper band. Subscription figures were not available at the time of writing.
GMP is unofficial, unregulated and unendorsed.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 92.94 | 112.72 | 122.51 |
| Net Profit (PAT) | 1.35 | 6.73 | 13.87 |
| PAT Margin (%) | 1.45 | 5.99 | 11.36 |
| RoCE (%) | 17.06 | 19.19 | 29.18 |
Total income rose from Rs 92.94 crore in FY24 to Rs 112.72 crore in FY25 and Rs 122.51 crore in FY26. Net profit rose from Rs 1.35 crore to Rs 6.73 crore and then Rs 13.87 crore.
The PAT margin increased from 1.45% to 11.36%, and RoCE from 17.06% to 29.18%. Analysts say the company may not be able to sustain the margins reported for FY25 and FY26.
Trade receivables rose from Rs 12.61 crore as of March 31, 2024 to Rs 25.40 crore as of March 31, 2026. Contingent liabilities stood at Rs 1.31 crore, and borrowings at Rs 33.25 crore.
Over the last three fiscals, the company reported an average EPS of Rs 7.91 and an average RoNW of 25.63%. It hasn’t paid any dividends during the reported periods.
Peer Comparison
| Company | P/E (x) |
|---|---|
| Paramount Syntex (FY26, post-IPO) | 16.84 |
| Shiva Texyarn | 24.2 |
| Sangam (India) | 25.8 |
| Donear Industries | 9.17 |
Risks to Consider
Profit jump and sustainability. Net profit rose from Rs 1.35 crore in FY24 to Rs 13.87 crore in FY26 while total income grew from Rs 92.94 crore to Rs 122.51 crore. The PAT margin climbed from 1.45% to 11.36%.
Rising receivables. Trade receivables doubled from Rs 12.61 crore in FY24 to Rs 25.40 crore in FY26.
Concentration. The company earns all of its revenue from one segment, acrylic and wool yarns made up 60.58% of FY26 revenue, and Punjab accounted for 90.64% of sales.
Raw materials. The company depends on waste acrylic fibre, part of which is imported from Thailand, which exposes it to supply and currency risk.
Capex execution. Rs 61.68 crore of the proceeds goes to new machinery at the existing Ludhiana facility, and the company has borrowings of Rs 33.25 crore. The company, its subsidiaries, promoters and directors are also involved in certain ongoing legal proceedings.
Valuation and SME-specific risks. The issue is priced at 3.56 times pre-IPO book value and 34.70 times FY25 earnings. The company operates in a highly competitive and fragmented segment. The minimum retail investment is Rs 2.54 lakh, and liquidity on the SME platform is limited.
This article is for informational purposes and is not personalised investment advice; investors should do their own due diligence or consult a SEBI-registered adviser before acting.
