Cable Stock In Focus On Allotment of 12.50 Lakh Shares To Promoters

In the capital goods industry, Paramount Communications is a small-cap firm. One of the top wire and cable manufacturers in India is Paramount Communications Ltd., which is part of the Paramount group of firms. Following the company's announcement that the promoter group will receive a preferential allocation of 12.50 lakh shares, the stock has come into focus.

"Pursuant to the approval of the Board of Directors at its meeting held on 18th December 2023 and approval of the members of the Company at their Extra-Ordinary General Meeting held on 11th January 2024 and pursuant to In-principle approvals granted by BSE Limited and National Stock Exchange of India Limited vide their respective letters dated 23rd January 2024 and upon receipt of an amount aggregating to Rs. 8.31,25,000 (Rupees Eight Crore Thirty-One Lakh and Twenty-Five Thousand only) at the rate of Rs. 66.50/- per equity share as equity share subscription price, the Share Allotment Committee of the Board of Directors of the Company., has considered and approved the Allotment of 12,50,000 (Twelve Lakh Fifty Thousand) Equity Shares on preferential basis to non-promoter persons/ entities (*Allottees') (as per the list enclosed marked as Annexure 1). Pursuant to the above allotment the issued, subscribed. and paid-up capital of the company has been increased from Rs. 60,33,69,740/- (divided into 30,16,84,870 equity shares of Rs. 2/- each) to Rs. 60,58,69,740/-(divided into 30,29,34,870 equity shares of Rs. 2/- each)," said Paramount Communications in a stock exchange filing.

During the quarter ended 31st December 2023, the company reported revenue from operations of Rs 284.25 crore up by 30% YoY from Rs 218.09 Cr in the same quarter of the previous fiscal. Its EBITDA stood at Rs 25.65 crore up by 35.42% YoY from Rs 18.94 Cr in the year-ago quarter. The company reported a net profit of Rs 22.02 crore in Q3FY24 up by 53.80% YoY from Rs 14.32 Cr in Q3FY23.

The company on 29th January 2024, approved the allotment of 2,03,74,980 shares at a price of 66.50/- per share, raising a total of Rs. 1,354.94 Mn by way of preferential allotment of equity shares to non-promoter, public category.