Paramesu Biotech To Raise Rs 600 Cr Via IPO—SEBI Approves Listing; Public Listing Soon

The IPO landscape is bustling with activity, even as the equity market sentiment remains subdued. Companies are moving forward with their public offerings. Paramesu Biotech, a producer of maize-based products, is among them. The Securities and Exchange Board of India (SEBI) granted approval for its IPO on March 4. The company had initially filed its IPO documents in November 2024, aiming to raise ₹600 crore.

Paramesu Biotech plans to gather ₹600 crore through its IPO. This includes a fresh issue of ₹520 crore and an offer for sale (OFS) worth ₹80 crore. The primary promoters involved are Unimark Business Solutions Private Limited, Speedfast Tracom Limited, Anand Swaroop Advani, Mani Sweta Tetali, and Himbindu Tetali.

The company's financial performance has been robust. In FY2024, Paramesu Biotech reported revenue of ₹629.29 crore and a profit after tax of ₹40.34 crore. For the current fiscal year, up to September 30, 2024, revenue reached ₹409.39 crore with a profit after tax of ₹26.85 crore.

A significant portion of the funds raised from the IPO will be allocated towards expansion and debt repayment. Specifically, ₹330 crore will be used to establish a new plant in Madhya Pradesh with a capacity of 1,200 tonnes per day. Additionally, ₹85 crore will go towards repaying existing loans.

Paramesu Biotech Limited specialises in maize-based products like liquid glucose, corn oil, corn syrup, and maltodextrin in India. Their offerings include native corn starch, modified corn starch, liquid glucose, maltodextrin powder, germs, gluten, fibre, corn steep liquor, and enriched fibre.

The company's production facility is located in Devra Palli in Andhra Pradesh's West Godavari district. Their clientele features Emami Paper Mills Limited, Tunav Food Products LLP, Singhania Foods International, and Prayag Consumer Care Private Limited.

IPO Management

Pantomath Capital Advisors Private Limited is serving as the book-running lead manager for this IPO. Bigshare Services Private Limited is acting as the registrar for the offering.

Paramesu Biotech's strategic plans for expansion and debt reduction indicate a focus on growth and financial stability. The company's strong financial performance further underscores its potential in the market.