Paramount Syntex SME IPO fully subscribed on day two; institutional portion bid 119.29 times

The Rs 81.79 crore SME IPO of textile company Paramount Syntex Limited is drawing a strong response from investors. The issue opened on September 30, 2026 and was fully subscribed on the second day. By 10.29 am on October 1, it had received bids totalling 1.32 times the issue size.

Demand from institutional investors has drawn the most attention. The company said that, excluding the anchor investors' share, bids for the portion reserved for qualified institutional buyers were 119.29 times the shares on offer. About 66,000 shares were available in this category, against which bids were received for 78.73 lakh shares. In a press release, the company said these bids are worth about Rs 100 crore. The net issue has about 61.17 lakh shares, against which bids were recorded for 80.56 lakh shares.

The company has fixed the price band at Rs 119 to Rs 127 per share. It will issue 64.40 lakh fresh equity shares and raise about Rs 81.79 crore. The IPO has no Offer for Sale, so the entire amount raised will go towards expanding the company's business. The issue closes on October 6, 2026, and the shares are proposed to be listed on the BSE SME platform.

One lot has 2,000 shares. At the lower price of Rs 119 per share, a minimum of Rs 2.38 lakh must be invested for one lot. At the upper price of Rs 127 per share, the minimum investment is Rs 2.54 lakh. The book running lead manager of the issue is Sobhagya Capital Options Limited and the registrar is Bigshare Services Private Limited.

According to the company, the unofficial grey market premium (GMP) is currently reported at about Rs 52 per share. However, GMP is not an official or regulated market indicator, so it may change before listing.

The company plans to spend about Rs 61.68 crore of the IPO proceeds on buying machinery. It wants to strengthen its production capacity by installing new machines at its existing production centres.

The company's results for financial year 2026 were also better. Revenue rose from Rs 112.42 crore to Rs 122.03 crore. Net profit climbed from Rs 6.73 crore to Rs 13.87 crore. Over the same period, EBITDA rose from Rs 13.17 crore to Rs 23.59 crore.

Paramount Syntex was founded in 1996. The company makes acrylic, polyester, wool, nylon and various blended yarns. Its production facility is in Ludhiana. The company is focusing on growing its business by making recycled acrylic fibre. It says there are opportunities for expansion in the synthetic and blended yarn market. The IPO proceeds will go towards increasing production capacity and widening its customer base. With the IPO due to close on October 6, investor bidding will be watched over the next few days.