365Telugu.com online news,November 9th,2024:Paramesu Biotech Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) worth ₹600 crore.
Paramesu Biotech, one of India’s leading manufacturers of maize-based specialty products, offers a wide range of products, including native maize starch, modified maize starches, liquid glucose, maltodextrin powder, and co-products like germs, gluten, fiber, corn steep liquor, and enriched fiber.
The company plans to raise up to ₹600 crore through this IPO. The total issue size will include a fresh issue of equity shares worth ₹520 crore and an Offer-For-Sale (OFS) amounting to ₹80 crore. The equity shares will have a face value of ₹5 each.
The net proceeds from the IPO will be used for several purposes, including funding capital expenditure of ₹330 crore for setting up a new plant with a capacity of 1,200 TPD in Madhya Pradesh. Additionally, ₹85 crore will be allocated to repay or pre-pay certain borrowings, and the remaining funds will be utilized for general corporate purposes.
Currently, Paramesu Biotech operates with an installed capacity of 800 TPD and has maintained a high capacity utilization rate of 93.09% in FY 2024. The company is one of the few in India specializing in a wide range of modified starches, including dextrin, pre-gelatinized starch, thin-boiled starch, cationic starch, oxidized starch, and spray starch.
Based at its expansive Devarapalli Facility in Andhra Pradesh, Paramesu Biotech has a strong market presence both in India and internationally. Its products are available across 14 states, 4 union territories, and over 10 countries in Southeast Asia and the Middle East. The company’s strategic location near Vizag port facilitates efficient exports, contributing to its global footprint.
In terms of financial performance, Paramesu Biotech has demonstrated steady growth. According to its restated financial statements, the company’s revenue from operations grew from ₹495 crore in FY 2022 to ₹628 crore in FY 2024. EBITDA increased from ₹59 crore in FY 2022 to ₹76 crore in FY 2024, while Profit After Tax (PAT) rose from ₹34 crore in FY 2022 to ₹40 crore in FY 2024.
Pantomath Capital Advisors Private Limited is the sole book-running lead manager for the IPO, marking the firm’s sixth IPO filing in the past two months.