PARAMOUNT SYNTEX LIMITED IPO

PARAMOUNT SYNTEX LIMITED IPO closed on 6 Oct 2026. Allotment 7 Oct 2026, listing 9 Oct 2026. Price band ₹119–₹127, lot 1000 shares, GMP +₹0 (0%). Track allotment on Allotly.

About PARAMOUNT SYNTEX LIMITED

Paramount Syntex Limited is engaged in the manufacturing of synthetic fibres, yarns and textile products, which are primarily supplied to the textile industry. Its product portfolio includes acrylic, polyester, wool and nylon yarns, blended yarns, acrylic fibres, acrylic tow and waste, modified polyester yarn, acrylic cloth and knitted cloth. The company also manufactures recycled synthetic fibre using waste fibre sourced from domestic suppliers and imports, primarily from Thailand. The company has in-house facilities for fibre processing, tow dyeing, hank dyeing, spinning, bulking and packing. Its manufacturing process covers stages including raw material processing, blending, spinning, winding, dyeing, and packaging. Paramount Syntex operates two factory units at Ludhiana, Punjab, with a combined factory land area of about 7,268.73 square yards. Its registered office is located in…

Strengths

• Paramount Syntex claims to have vertically integrated manufacturing operations, with in-house facilities for fibre processing, tow dyeing, hank dyeing, spinning, bulking, and packing. This reduces its dependence on external processing across several key stages of production.
• The company has a diversified product portfolio comprising acrylic, polyester, wool, nylon and blended yarns, along with synthetic fibres and fabric/textile products. Its products cater to applications including apparel, knitwear, home furnishings and other textile products.
• Paramount Syntex manufactures recycled synthetic fibre from waste generated by virgin synthetic fibre manufacturers. The raw material is sourced domestically as well as internationally and is processed into recycled fibre used to manufacture yarns for products such as sweaters, caps, gloves, mufflers and socks.
• The company claims to have an established manufacturing setup comprising two factory units in Ludhiana, Punjab, spread across a combined factory land area of about 7,268.73 square yards. Its machinery includes equipment for fibre processing, spinning and dyeing, such as blow room, card, draw frame, ring frame, auto cone, fibre dyeing and hank dyeing machines.
• The company is ISO 9001:2015 certified for Quality Management Systems, ISO 45001:2018 certified for Occupational Health and Safety Management Systems, and ISO 14001:2015 certified for Environmental Management Systems. It is also a Good Manufacturing Practice (GMP) certified organisation.
• Paramount Syntex has recorded growth in both revenue from operations and PAT over the last three financial years. Revenue from operations increased from Rs 92.78 crore in FY24 to Rs 112.42 crore in FY25 and Rs 122.03 crore in FY26, while PAT increased from Rs 1.35 crore to Rs 6.73 crore and Rs 13.87 crore, respectively.

Risks

• Paramount Syntex derives its entire revenue from a single business segment of manufacturing and trading fibre, yarn, and knitted cloth. This segment accounted for 100% of its revenue from operations in FY26, exposing the company to issues related to changes in demand, competition, raw material prices, and other developments affecting this segment.
• The company, its subsidiaries, promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases cou ki ld be detrimental to the company’s business prospects.
• The company’s top 10 customers accounted for Rs 66.88 crore, Rs 61.75 crore, and Rs 62.50 crore, representing 54.81%, 54.93%, and 67.36% of sales in FY26, FY25, and FY24, respectively. The company does not have long-term agreements with these customers, and the loss of major customers or a reduction in their orders could affect its revenue and profitability.
• The company’s top 10 suppliers accounted for Rs 53.81 crore, Rs 57.72 crore, and Rs 63.83 crore, representing 62.61%, 66.63%, and 78.07% of raw material purchases in FY26, FY25, and FY24, respectively. The company does not have long-term agreements with these suppliers, and any disruption in supplies or inability to procure raw materials on comparable terms could affect its production and margins.
• Paramount Syntex has a high geographical concentration in Punjab in terms of revenue earned. The state accounted for Rs 110.61 crore, Rs 105.72 crore, and Rs 91.03 crore, representing 90.64%, 94.04%, and 98.12% of sales in FY26, FY25, and FY24, respectively. Any adverse economic, competitive, or regulatory developments in Punjab could significantly affect the company’s business and financial performance.
• The company has reported negative cash flows from operating and investing activities, as well as a net decrease in cash and cash equivalents, in certain financial years. Net cash used in operating activities was Rs 2.57 crore and Rs 0.74 crore in FY25 and FY24, respectively, while net cash used in investing activities was Rs 2.87 crore, Rs 4.41 crore and Rs 0.92 crore in FY26, FY25 and FY24, respectively. The net decrease in cash and cash equivalents was Rs 0.76 crore in FY25 and Rs 0.10 crore in FY24. The negative operating cash flows were mainly due to changes in working capital, including an increase in trade receivables, inventories, and short-term loans and advances, while investing cash outflows were related to the company’s investments and acquisition of fixed assets. If the company is unable to generate sufficient cash flows from operations to fund its normal operations and growth plans, the ensuing finance cost could adversely affect its business and financial operations.
• Paramount Syntex has had several instances of delays and discrepancies in statutory filings. These include delays in GST, EPF, ESIC, and TDS compliances, along with delayed RoC filings; some RoC filings were delayed by more than 400 days. Although certain delays have been regularised and no RoC action has been taken as of the RHP date, future regulatory action or penalties cannot be ruled out.
• Paramount Syntex does not have long-term agreements with its raw material suppliers and primarily procures materials from the open market. Cost of goods sold stood at Rs 91.48 crore, Rs 93.06 crore, and Rs 71.34 crore, representing 74.97%, 82.78%, and 76.90% of revenue from operations in FY26, FY25, and FY24, respectively. Any increase in raw material prices or disruption in availability could affect the company’s production and profit margins.

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