Paramount Syntex
A distinct read of SME-specific danger (liquidity, concentration, forensic flags) — separate from the FinMinutes Score. Higher band = more caution warranted.
- Pre-IPO 30:1 bonus allotment expanding insider shareholding at zero cost.
- Substantial related-party transactions and trade advances totaling over Rs. 10.00 crore to promoter entities KK Impex and Paraspin Impex.
- Significant tax litigation of Rs. 5.29 crore against Company and Rs. 50.67 crore against group entities.
- Negative operating cash flows in FY24 (-Rs. 0.74 crore) and FY25 (-Rs. 2.57 crore).
- Missing historical corporate documents at RoC and statutory return filing delays of up to 449 days.
Educational risk signal grounded in the filing — not a buy/sell call.
First time with SME IPOs? Read the SME IPO guide and the risks before applying.
FinMinutes Deep Business Model & Edge
Paramount Syntex Limited is a Ludhiana-based manufacturer of synthetic fibres, yarns, and knitted cloth, specializing in recycled acrylic wool, polyester, nylon yarns, and sustainable textile products.
What this company actually does — full breakdown ▾
Incorporated in 1996 and based in Ludhiana, Punjab, Paramount Syntex Limited manufactures synthetic fibres, blended yarns, recycled acrylic fibres, acrylic wool yarns, polyester yarns, nylon yarns, and knitted cloth. The company operates an integrated manufacturing facility across 7,268.73 sq. yards in Village Mangarh, Ludhiana, with in-house fibre processing, tow dyeing, hank dyeing, spinning, bulking, and packing capabilities. The business model combines manufacturing of yarns and textiles with trading of synthetic fibres to optimize plant utilization and market demand. For FY26, revenue from operations reached Rs. 122.0299 crore with restated profit after tax of Rs. 13.8682 crore. The top 10 customers accounted for 54.81% of FY26 sales, and top 10 suppliers accounted for 62.61% of raw material purchases.
Fully integrated manufacturing facility with in-house dyeing and spinning capabilities in Ludhiana's textile hub, recycling-driven production model converting waste acrylic fibres into value-added yarns, ISO 9001/14001/45001/GMP quality certifications, and over 28 years of operating track record.
The Offer
Follow the Money — Use of Proceeds
- Funding of capital expenditure requirements of our Company towards purchase of Machinery at existing facilities — ₹61.68 cr
- General corporate purposes
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 4 live components.
88% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured12%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured32%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured10%
The post-issue earnings multiple against the peer median disclosed in the filing. A discount to the median scores well and a premium scores badly. When the filing does not disclose comparable peer multiples, this component is dropped from the weighting rather than held at a made-up neutral.
How this is measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 122.0299 | 112.4179 | 92.7786 |
| Net Profit (₹ Cr) | 13.8682 | 6.7283 | 1.3472 |
| PAT Margin | 11.36% | 5.99% | 1.45% |
Market Context
NOT part of the FinMinutes ScoreThe Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.
Demand and our read of the filing are broadly in the same territory.
Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Revenue from Operations (FY26 vs FY25) | ↑ 8.6% | Revenue increased due to volume growth and operational expansion across synthetic yarn lines. | Structural |
| Profit After Tax (FY26 vs FY25) | ↑ 106.1% | PAT expanded due to gross margin improvements and effective raw material cost management. | Structural |
| Trade Receivables (FY26 vs FY25) | ↑ 20.1% | Trade receivables increased due to revenue growth and credit terms extended to textile buyers. | Structural |
| Operating Cash Flow (FY26 vs FY25) | ↑ 329.5% | Operating cash flow turned positive at INR 5.9016 crore in FY26 compared to negative INR 2.5715 crore in FY25 due to higher operating profitability. | Structural |
Headwinds
- Geographic concentration of revenue with 90.64% of domestic sales coming from Punjab company persistent
A substantial portion of revenue is concentrated in Punjab, exposing operations to regional economic or textile industry disruptions. - Lack of long-term supply contracts for raw material synthetic fibres sector persistent
Cost of goods sold accounts for 74.97% of revenue; absence of long-term price locks exposes margins to crude oil and petrochemical fluctuations. - Substantial pending tax proceedings totaling INR 55.96 crore across company and group entities company temporary
Pending GST and income tax assessment notices pose contingent financial liabilities.
Tailwinds
- Capacity expansion via machinery acquisition at existing Ludhiana unit company
Allocating INR 61.68 crore to install new spinning and dyeing machinery will increase production capacity and improve operating margins. - Growing demand for eco-friendly recycled acrylic wool and synthetic yarns macro
In-house fibre recycling and tow/hank dyeing infrastructure aligns with sustainable sourcing trends in global apparel markets.
| Facility | Period | Utilisation |
|---|---|---|
| Town Dyeing (Kgs) | FY26 | 81.5% |
| Hank Dyeing (Kgs) | FY26 | 94.4% |
| Fiber (Kgs) | FY26 | 87.5% |
| Spinning (Kgs) | FY26 | 91.7% |
Movements the filing does not explain
- Pre-IPO 30:1 Bonus Issue Capitalizing Reserves FY24 — In March 2024, the company issued 10,300,500 bonus shares (30:1 ratio) at INR 0.00 per share by capitalizing reserves, expanding equity capital prior to the public offer.
A material movement that management does not address is not a finding on its own. It is a question the filing leaves open, and it is recorded here as one.
Issue Timeline
Dates as carried by the exchange feed. Allotment, refund and credit dates move more often than the open and close dates do.
- Refunds initiated2026-10-08
- Pre Application Start2026-09-29
- Bidding Start2026-09-30
- Bidding End2026-10-06
- Allotment Process Start2026-10-07
- Allotment Finalization2026-10-08
- Listing Day2026-10-09
- Mandate End2026-11-17
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 122.03 | 112.42 | 92.78 |
| Other Income | 0.48 | 0.31 | 0.17 |
| Total Income | 122.51 | 112.72 | 92.94 |
| Cost of Materials Consumed | 104.51 | 94.23 | 83.83 |
| Changes in Inventories | -13.03 | -1.17 | -12.48 |
| Employee Benefit Expense | 3.65 | 3.21 | 3.06 |
| Finance Cost | 3.00 | 2.77 | 2.73 |
| Depreciation & Amortisation | 2.06 | 1.61 | 1.70 |
| Other Expenses | 3.17 | 2.90 | 8.88 |
| Total Expenses | 103.37 | 103.54 | 87.72 |
| Profit Before Exceptional Items and Tax | 19.15 | 9.18 | 5.22 |
| Exceptional Items | 0.00 | 0.00 | 0.00 |
| Profit Before Tax | 19.15 | 9.18 | 5.22 |
| Tax Expense | 5.28 | 2.45 | 3.88 |
| Profit After Tax | 13.87 | 6.73 | 1.35 |
| EPS - Basic | 11.60 | 5.69 | 1.27 |
| EPS - Diluted | 11.60 | 5.69 | 1.27 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 11.96 | 11.96 | 10.64 |
| Reserves & Surplus | 30.71 | 16.84 | 3.40 |
| Net Worth | 42.67 | 28.80 | 14.05 |
| Long-term Borrowings | 5.55 | 7.85 | 6.87 |
| Short-term Borrowings | 27.70 | 25.62 | 25.72 |
| Total Borrowings | 33.25 | 33.47 | 32.59 |
| Trade Payables | 9.58 | 7.69 | 8.58 |
| Current Liabilities | 46.99 | 38.85 | 38.78 |
| Total Liabilities | 96.26 | 76.09 | 60.25 |
| Property, Plant & Equipment | 13.29 | 9.33 | 9.87 |
| Capital Work in Progress | 0.00 | 3.16 | 0.00 |
| Intangible Assets | 0.00 | 0.00 | 0.00 |
| Investments | 0.00 | 0.00 | 0.00 |
| Inventories | 41.34 | 36.55 | 33.85 |
| Trade Receivables | 25.40 | 21.14 | 12.61 |
| Cash & Equivalents | 0.31 | 0.29 | 1.05 |
| Current Assets | 81.30 | 61.78 | 48.32 |
| Total Assets | 96.26 | 76.09 | 60.25 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | 5.90 | -2.57 | -0.74 |
| Capital Expenditure | -2.86 | -4.28 | -0.93 |
| Net Cash from Investing Activities | -2.87 | -4.41 | -0.92 |
| Net Cash from Financing Activities | -3.01 | 6.22 | 1.55 |
| Net Change in Cash | 0.02 | -0.76 | -0.11 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profitability | |||
| EBITDA Margin (%) | 19.8 | 12 | 10.4 |
| EBIT Margin (%) | 18.1 | 10.6 | 8.6 |
| PAT Margin (%) | 11.4 | 6 | 1.5 |
| Return on Equity (%) | 32.5 | 23.4 | 9.6 |
| Return on Capital Employed (%) | 29.2 | 19.2 | 17.1 |
| Return on Assets (%) | 14.4 | 8.8 | 2.2 |
| Leverage | |||
| Debt / Equity (x) | 0.78 | 1.16 | 2.32 |
| Net Debt / EBITDA (x) | 1.36 | 2.45 | 3.27 |
| Interest Coverage (x) | 7.37 | 4.32 | 2.91 |
| Liquidity | |||
| Current Ratio (x) | 1.73 | 1.59 | 1.25 |
| Quick Ratio (x) | 0.85 | 0.65 | 0.37 |
| Efficiency | |||
| Asset Turnover (x) | 1.27 | 1.48 | 1.54 |
| Receivable Days | 76 | 69 | 50 |
| Inventory Days | 124 | 119 | 133 |
| Payable Days | 29 | 25 | 34 |
| Cash Conversion Cycle (days) | 171 | 163 | 149 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | 0.43 | -0.38 | -0.55 |
| Accruals Ratio (%) | 8.3 | 12.2 | 3.5 |
| Capex / Depreciation (x) | 1.39 | 2.65 | 0.54 |
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Margin (PAT / Revenue) | 11.4% | 6% | 1.5% |
| Asset Turnover (Revenue / Assets) | 1.27x | 1.48x | 1.54x |
| Equity Multiplier (Assets / Net Worth) | 2.26x | 2.64x | 4.29x |
| = Return on Equity | 32.5% | 23.4% | 9.6% |
| Tax Burden (PAT / PBT) | 0.72x | 0.73x | 0.26x |
| Interest Burden (PBT / EBIT) | 0.86x | 0.77x | 0.66x |
| Operating Margin (EBIT / Revenue) | 18.2% | 10.6% | 8.6% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- Operating cash flow was only 0.43x reported profit in FY26. Less than half of the profit on the income statement arrived as cash.
- Receivable days rose from 50 in FY24 to 76 in FY26. The company is booking revenue faster than it is collecting it, which ties up cash and raises the question of who is not paying.
- Between FY24 and FY26 revenue grew 32% while profit grew 929%. Profit expanding at several times the rate of revenue is not automatically a concern — operating leverage does exactly this — but it is worth confirming from the filing whether the gap comes from genuine margin expansion or from one-off items.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
M = -2.1An eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 1.107 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | 1.127 | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | 0.265 | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.086 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 1.096 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 1.029 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 0.889 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.0828 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
M = -2.1, below the −1.78 threshold. The model does not flag these accounts.
Altman Z″-Score (emerging markets)
Z″ = 8.64 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.356 |
| X2 — Retained Earnings / Total Assets | 0.319 |
| X3 — EBIT / Total Assets | 0.23 |
| X4 — Net Worth / Total Liabilities | 0.443 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 8.64 |
Piotroski F-Score (adapted)
5 / 8Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.
- ✓Positive return on assets
- ✓Positive operating cash flow
- ✓Return on assets improving
- ✗Cash flow exceeds profit (quality of earnings)
- ✓Long-term leverage decreasing
- ✓Current ratio improving
- ✗Gross margin improving
- ✗Asset turnover improving
The Final-Year Check
oursNot from any textbook. The hockey stick in the last year before a filing is the oldest pattern in this business, and nobody publishes it. So we measure it: how the final disclosed year compares with the years behind it. Real acceleration looks exactly the same on the page as a flattering one — which is precisely why it is worth naming rather than assuming either way.
- The EBITDA margin expanded by 7.8 percentage points in FY26, having moved 1.7 points the year before. Margin expansion concentrated into the final disclosed year is worth understanding: operating leverage produces it honestly, and so does a change in what gets capitalised.
Ratios Nobody Prints
- Contingent liabilities / Net worth: 0.7%
Contingent liabilities of 0.29 cr against a net worth of 42.67 cr — 0.7% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 0%
0% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Cash / Short-term borrowings: 0.01x
Short-term borrowings of 27.70 cr against cash of 0.31 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 1.7%
Managerial remuneration to the promoter group was 0.24 cr against a profit of 13.87 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth13.87 ÷ 42.67What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)22.15 ÷ (42.67 + 33.25) = 22.15 ÷ 75.92Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue24.21 ÷ 122.03Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth33.25 ÷ 42.67How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost22.15 ÷ 3.00How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(25.40 ÷ 122.03) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days124 + 76 − 29How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT5.90 ÷ 13.87Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(13.87 − 5.90) ÷ 96.26 = 7.97 ÷ 96.26The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Price × Post-issue Shares₹127.00 × 18,399,400 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash233.67 + 33.25 − 0.31What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.
Enterprise Value ÷ EBITDA266.61 ÷ 24.21The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.
Market Cap ÷ PAT233.67 ÷ 13.87The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ EPS, on pre- and post-issue share counts₹11.60 EPS pre → ₹7.54 EPS postThe fresh issue expands the share count by 35%, so the same profit is spread across more shares. The multiple quoted in the filing is struck on pre-issue earnings; the one on the right is what a buyer actually holds on listing day. The gap closes only if the new capital earns a return, which has not happened yet.
Offer price ÷ weighted average cost of acquisition₹127.00 ÷ ₹60.99Every offer document must disclose the weighted average cost of acquisition for shares issued or transferred over the preceding one, eighteen and thirty-six months. Early capital takes real risk and a large multiple built over years is ordinary. A steep step-up inside a short window is the one that deserves a second look. What it means is yours to decide; the arithmetic is the filing’s own.
EBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)NOPAT ÷ Invested CapitalWhat the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.
P/E ÷ trailing PAT growth (%)16.85 ÷ 106.1%PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.
Workspace
The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.
Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.
Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.
Institutional Alpha: DRHP Deep Dive
Pre-IPO 30:1 Bonus Issue Capitalizing Reserves and Expanding Promoter Shareholding
On March 07, 2024, the company issued 10,300,500 bonus shares in a 30:1 ratio at INR 0.00 per share by capitalizing reserves, expanding pre-issue equity capital and lowering promoter acquisition costs prior to the public offer.
Source: p.72, 74, 209Heavy Related-Party Purchases, Sales, and Capital Advances with Promoter Entities
The company executed substantial transactions with related entities KK Impex and Paraspin Impex Pvt Ltd, including purchases of INR 1.8472 crore in FY26, trade advances given of INR 6.7129 crore to KK Impex, and advances of INR 3.4817 crore to Paraspin Impex.
Source: p.55, 56, 203, 204Substantial Group Entity Tax Proceedings and Income Tax Scrutiny Notices
The company and its group entities carry significant tax litigation, including 9 direct/indirect tax cases against the company totaling INR 5.2892 crore and 15 tax cases against group entities totaling INR 50.6695 crore.
Source: p.20, 21, 227, 248Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Punit Arora
Litigation: Pending income tax assessment demands totaling Rs. 5.2892 crore (9 cases against Company) and group entity tax proceedings of Rs. 50.6695 crore (15 cases). Section 138 NI Act complaint filed by Company claiming Rs. 1.9800 crore against Johar Karyana Store. High Court petition filed by Promoter Punit Arora regarding FIR 224/2023 involving SIT investigation into Rs. 20.00 crore alleged fraud.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| Shiva Texyarn Limited | 23.35 | — | 6.74 | — |
| Sangam (India) Limited | 33.15 | — | 7.96 | — |
At the ₹127 upper band, the issue is priced at 10.9x earnings — a 61% discount to the peer median of 28.3x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.
Global and Indian Textile & Synthetic Yarn Industry Metrics
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Global Textile Market Size (USD billion) | 660.13 | 2025 estimated global market size at 6.8% CAGR |
| Indian Textile Export Projection by FY26 (USD billion) | 65 | Projected Indian textile exports by FY26 |
Source: p.140, 186, 189
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
On March 07, 2024 (18 months prior to DRHP filing), the company issued 10,300,500 bonus shares in a 30:1 ratio at Rs. 0.00 per share by capitalizing reserves, expanding equity capital from 343,350 shares to 10,643,850 shares, reducing promoter average acquisition costs to low historical levels.
p.72, 74, 209The company executed substantial transactions with related entities KK Impex, Paraspin Impex Pvt Ltd, and PSPL Dyers and Processors Pvt Ltd, including purchases of Rs. 1.8472 crore in FY26 (Rs. 1.8169 crore in FY25, Rs. 4.4708 crore in FY24), trade advances given of Rs. 6.7129 crore to KK Impex, and advances of Rs. 3.4817 crore to Paraspin Impex.
p.55, 56, 203, 204The company and its group entities carry significant tax litigation, including 9 direct/indirect tax cases against the company totaling Rs. 5.2892 crore and 15 tax cases against group entities totaling Rs. 50.6695 crore. Furthermore, tax authorities issued show cause notices disallowing share application money and restructuring additions.
p. 20, 21, 227, 248 and 1 moreDue to incorporation in 1996, certain historical corporate documents were missing during physical inspection at the RoC, forcing the lead manager to rely on internal backup registers. Additionally, secretarial filing delays of up to 449 days for Form CSR-2 and 327 days for Form MGT-14 were disclosed.
p.25, 52, 71The peer comparison set includes mainboard-listed textile manufacturers Shiva Texyarn Limited (P/E 23.35x) and Sangam (India) Limited (P/E 33.15x), yielding an average peer P/E of 28.25x.
p.129, 130Pending income tax assessment demands totaling Rs. 5.2892 crore (9 cases against Company) and group entity tax proceedings of Rs. 50.6695 crore (15 cases). Section 138 NI Act complaint filed by Company claiming Rs. 1.9800 crore against Johar Karyana Store. High Court petition filed by Promoter Punit Arora regarding FIR 224/2023 involving SIT investigation into Rs. 20.00 crore alleged fraud.
p. 20, 58, 71, 179 and 6 moreShort-term borrowings of ₹27.70 cr against cash of ₹0.31 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.
rule: cash < 0.5x short-term debtCompany's Claims vs Reality
We stress-test each claim against the filing's own data.
Existing plant capacity utilization averaged between 70% and 83% across operations, validating that capacity expansion supports growing order volume, though fund deployment relies solely on internal management estimates without independent bank appraisal.
p.24, 85, 86, 87EBITDA margins expanded from 10.19% in FY24 to 11.71% in FY25 and 19.33% in FY26, confirming that in-house processing and product mix optimization improved operating profitability.
p.128, 161, 165Live Subscription Status
Allotment Status
Check your allotment on the registrar's portal → Registrar: Bigshare Services
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (17 Nov 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
How are the fresh issue IPO proceeds allocated across machinery capital expenditure and general corporate purposes?
Fresh issue proceeds are allocated as: Rs. 61.6771 crore for funding capital expenditure requirements towards purchase of plant & machinery at existing Ludhiana manufacturing facilities, and the balance for General Corporate Purposes (capped at 15% of gross issue proceeds or Rs. 10.00 crore, whichever is lower).
p.85, 86, 123, 126What is the promoters' shareholding pre-issue and their acquisition cost history?
Promoters Punit Arora and Kumkum Arora hold 91.74% pre-issue equity (10,971,678 shares out of 11,959,382 pre-issue shares). Promoter shareholding was expanded through a 30:1 bonus issue (10,300,500 shares) in March 2024 and preferential allotments at Rs. 61-200 per share, establishing a promoter weighted average cost of acquisition (WACA) of Rs. 60.99 per share for recent allotments.
p.71, 74, 135, 192What are the key related-party transactions, capital advances, and promoter debt support?
Significant related-party transactions with promoter entities (KK Impex, Paraspin Impex Pvt Ltd, PSPL Dyers & Processors Pvt Ltd) include purchases of Rs. 1.8472 crore in FY26, trade advances given of Rs. 6.7129 crore to KK Impex, and advances of Rs. 3.4817 crore to Paraspin Impex. Key managerial remuneration to Whole-Time Director Kumkum Arora totaled Rs. 0.1200 crore in FY26. Promoters provided personal guarantees and collateral property mortgages for corporate credit facilities of Rs. 33.25 crore.
p.55, 56, 203, 204, 221How did operating cash flow perform relative to restated net profits over FY24 to FY26?
Restated PAT expanded from Rs. 1.3472 crore in FY24 to Rs. 6.7283 crore in FY25 and Rs. 13.8682 crore in FY26. Operating Cash Flow (CFO) was negative in FY24 (-Rs. 0.7392 crore) and FY25 (-Rs. 2.5715 crore) due to working capital inventory absorption, before turning strongly positive at +Rs. 5.9016 crore in FY26.
p.25, 50, 51, 52, 161What secretarial, statutory compliance, litigation, and tax findings exist for the company?
The company disclosed 9 tax cases against the company totaling Rs. 5.2892 crore and 15 tax cases against group entities totaling Rs. 50.6695 crore. Statutory filing delays of up to 449 days for RoC forms and administrative delays in GSTR-3B, EPF, and TDS deposits were reported. Historical RoC physical documents were missing. Statutory auditor M/s Aggarwal Pawan & Associates served continuously without auditor change.
p.20, 24, 25, 52, 223, 227, 248What are the application lot terms, retail ticket requirements, market maker details, and exit constraints for public investors?
The offer is listed on BSE SME with a minimum retail application requirement of 2 lots (minimum application size above Rs. 2.00 lakhs). Trading occurs strictly in standardized market lots, and because lots are indivisible, partial exit or fractional lot trading is impossible. MNM Stock Broking Private Limited is the Market Maker with 323,000 reserved shares (5.02%) and a mandatory 3-year obligation period. Standard SME 5% price circuit limits apply.
p.1, 8, 48, 59, 71, 244What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Promoters & Initial Subscribers to MOA | ₹10.00 | 1996-03-08 | 12.7x |
| An early round from roughly 31 years ago, at roughly 12.7x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | ₹10.00 | 1997-03-31 | 12.7x |
| An early round from roughly 30 years ago, at roughly 12.7x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders (Bonus 30:1) | — | 2024-03-07 | — |
| Preferential Allottees | ₹61.00 | 2024-05-09 | 2.1x |
| Allotted below the band — 2 entries | |||
| Private Placement Allottees | ₹200.00 | 2013-03-25 | as disclosed |
| Private Placement Allottees | ₹200.00 | 2014-03-31 | as disclosed |
The 2 allotments listed under “allotted below the band” are shown at their as-disclosed per-share price. They are not adjusted for any later bonus issue or share split, so where a company has issued bonus shares the raw multiple understates the true return and can even read as a loss when none was made. We show them as filed and decline to compute a misleading multiple.
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 09 Oct 2029promoter3 years3,700,000 shares (20.11% of total)
- 09 Oct 2028promoter2 years3,640,000 shares (19.78% of total)
- 09 Oct 2027promoter1 year3,631,678 shares (19.74% of total)
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.
