Paramount Syntex IPO

Easy to miss in the prospectus

• EBITDA in this record is the prospectus's own figure, and the prospectus computes it as profit before tax plus depreciation plus interest paid minus other income. Interest paid is the ₹2.86 Cr cash-flow line, not the ₹3.00 Cr of finance costs in the profit and loss account. On finance costs the FY26 figure would be ₹23.73 Cr and the margin 19.45% rather than 19.33%. The same construction reproduces the FY25 and FY24 figures exactly.
• The 1.88× headline is one 66,000-share sliver doing all the work. QIB was 1.08% of the 61,17,000-share net offer — far below the 50% ceiling the regulation allows — and was bid 119.29×, which is 78.73 lakh shares, or 1.29× the entire net offer on its own. QIB stood at exactly 119.29× on all four bidding days, so every bit of movement from 1.30× to 1.88× came from retail going 0.03× to 1.10×. Because that multiple is measured on the full 66,000 shares, no anchor portion was carved out of the book.
• The 'Industry P/E' box in the Basis for Issue Price chapter gives a highest of 75.28, a lowest of 14.88 and an average of 45.08. The peer table printed immediately below it lists P/Es of 23.35, 33.15 and 9.83, none of which is either extreme and whose average is 22.11. The peer table is the source used here.
• Grey market premium — an unofficial, unregulated sentiment signal — was quoted at ₹0, a 0% premium, and stayed there; it is the only pre-listing reading available. It was directionally right. The stock opened at ₹115, closed its first day at ₹109.25 and was ₹103.80 on 12 October, 18.27% below the issue price.
• The last price anyone outside the family paid was ₹61. A preferential allotment of 13,15,532 shares went to Rajasthan Global Securities Private Limited at ₹61 on 9 May 2024; Punit Arora bought 3,27,868 of them back at ₹61 in April 2025, and the balance of 9,87,664 — the entire 8.26% public pre-issue stake — now sits with Kirti Behal. The prospectus's weighted average cost of acquisition across the last five such transactions is ₹60.99, against a ₹127 cap price.
• The promoter family already has a separately listed company in the same business at the same address. Group entity Paramount Dye Tec Limited (CIN L13114PB2024PLC060422) was incorporated in January 2024, is registered at Village Mangarh, Machiwara Road, Kohara, has the stated object of manufacturing yarns, and is run by Kunal Arora and Palki Arora. Paramount Syntex rents its work premises from it for ₹3,60,000 a month, and it was the issuer's largest supplier in FY24 at ₹10.27 Cr, 12.56% of purchases, before falling to nil in FY25 and FY26.
• The machinery quotations behind the ₹61.68 Cr capex are of wildly different vintages. LMW Limited's is dated 1 May 2026 with a 90-day validity, which lapses well before the prospectus's own date of 22 September 2026, yet every vendor table carries the note that the quotations 'are valid and remain in force' as at that date. Others date from August and September 2025 with validities extended into November 2026.
• The major machinery already installed — blow room, cards, draw frames, speed frame, ring frame, auto cone, TFO and the fibre and hank dyeing machines — is listed in the prospectus as purchased in 2012, and net property, plant and equipment stood at ₹13.29 Cr at 31 March 2026.
• FY24 net asset value per share appears twice, at ₹409.12 and at ₹13.20. The difference is a 30:1 bonus issue of 1,03,00,500 shares on 7 March 2024, which took the share count from roughly 3.43 lakh to 1.06 crore seven months before the company converted to a public limited company.
• Contingent liabilities are all live tax disputes and went from ₹4.64 lakh at FY25 to ₹1.31 Cr at FY26: ₹29.34 lakh of income tax under appeal before the CIT(A), and ₹90.90 lakh of GST across a DRC-01 show-cause notice for FY2021-22 and an ASMT-10 for FY2022-23.
• The Objects chapter rests one of its six capex rationales on 'Leveraging Export Opportunities' and describes the company as serving both domestic and export markets, while risk factor 15 discloses exports of 0.45% of revenue in FY25 and none at all in FY26 or FY24.
• The prospectus directs investors to www.paramountsyntex.com for the group companies' financial information. That address was not serving on 13 October 2026.