SEBI Receives Draft Paper From Paramesu Biotech For ₹600 Crore IPO

The capital markets watchdog SEBI has received preliminary documents from Paramesu Biotech Ltd. seeking to raise Rs 600 crore through an IPO.

The Draft Red Herring Prospectus (DRHP) filed by promoter Unimark Business Solutions Private Ltd states that the proposed IPO consists of an Offer-For-Sale (OFS) of shares for Rs 80 crore and a new issue of shares worth RS 520 crore.

IPO proceeds utilisation

The new issue's proceeds, totalling Rs 330 crore, will be used to establish a 1,200 TPD (tonnes per day) plant in Madhya Pradesh, pay off debt, and use the remaining funds for general corporate purposes.

Pre-IPO placement

The Andhra Pradesh-based business might also think about raising Rs 90 crore during the pre-IPO phase. The aforementioned sum will be subtracted from the fresh issue component if the pre-IPO placement is finished before the red herring prospectus is filed with the Registrar of Companies (RoC).

Current shareholding pattern

The public shareholders own the remaining 7.81 per cent of the company, while the promoter owns 92.19 per cent.

Financials of the company

Regarding finances, the company's revenue increased from Rs 495 crore in FY22 to Rs 628 crore in FY24, and its profit after tax increased from Rs 34 crore in FY22 to Rs 40 crore in FY24.

Company offerings

One of India's biggest producers of specialty goods made from maize is Paramesu Biotech. Native and modified maize starches, liquid glucose, maltodextrin powder, and co-products like fiber, germs, gluten, corn steep liquor, and enriched fiber are all part of the varied product line.

With its products available in 14 states, four union territories, and more than ten countries in Southeast Asia and the Middle East, the company, which operates out of its Devarapalli facility in Andhra Pradesh, maintains a strong presence in both domestic and international markets.