Paramount Syntex Limited IPO

01At a glance

Paramount Syntex IPO date, price band and lot size

What the company does: makes yarns (acrylic, acrylic-wool blends, polyester, nylon), recycled acrylic fibre from fibre waste, and acrylic and knitted cloth at one factory at Village Mangarh, Kohara, Ludhiana, Punjab (RHP p.152, RHP p.155).

Who pays it: textile businesses that knit, weave and process the yarn further (RHP p.33). The customers are not named. The largest was 8.52% of FY26 revenue and the top ten 54.81% (RHP p.270, RHP p.271). Punjab was 90.64% of FY26 sales (RHP p.32).

Why it is raising money: ₹6,167.71 lakh for spinning, winding, twisting and dyeing machines, utilities and building works at the existing Ludhiana site, with the rest for general corporate purposes, an amount left blank (RHP p.88, RHP p.126).

How fast it has grown: revenue from ₹9,277.86 lakh in FY24 to ₹12,202.99 lakh in FY26 and profit after tax from ₹134.72 lakh to ₹1,386.82 lakh (RHP p.134). Our arithmetic: about 14.7% a year for revenue and 220.8% a year for profit, the second figure from a FY24 base cut by a ₹679.20 lakh write-off (RHP p.134, RHP p.29).

The one thing to understand: money moved from the company to the promoters' side in FY26. At March 2026 the company had ₹1,019.46 lakh of trade advances outstanding to two businesses under the promoters' management, and during FY26 it lent ₹807.81 lakh to the two promoters, our arithmetic from the related-party tables (RHP p.59, RHP p.60). Two years earlier it had written off ₹679.20 lakh of advances to suppliers or business associates (RHP p.29).

02The business, in plain words

What Paramount Syntex does

The company buys acrylic, polyester and blended fibre, and waste acrylic fibre from makers of virgin fibre in India and abroad, mainly Thailand (RHP p.156). It opens, crimps, heat-sets, dries and cuts the waste into recycled fibre, dyes fibre in tow and yarn in hank form, and spins, winds, doubles and twists yarn, all in-house (RHP p.156, RHP p.157). Its yarns go into sweaters, caps, gloves, mufflers, socks, blankets and home furnishings (RHP p.154). It also trades (RHP p.153).

A knitter or weaver needs dyed or grey acrylic, blended or synthetic yarn → orders it from the company → the company buys fibre and fibre waste, recycles, dyes and spins it in Ludhiana → it is paid for the yarn, fibre or cloth, usually on credit.

The company was incorporated in Mumbai in 1996 and its registered office remains there, while the factory, head office and godown are in Ludhiana (RHP p.152, RHP p.170). Punit Arora, the chairman and managing director, has been a director since January 8, 2008 (RHP p.182). It had 355 permanent employees at March 31, 2026, 259 of them workers (RHP p.168). The main machines listed were bought in 2012 (RHP p.162).

Earnings equation: Revenue = kilograms of yarn, fibre and cloth sold × price per kilogram, and profit is what remains after fibre, dyes, power, wages, interest and depreciation. The prospectus does not give volumes sold in kilograms. In FY26 the cost of goods sold was ₹9,148.25 lakh, 74.97% of revenue (RHP p.36). Employee costs were ₹364.83 lakh and finance costs ₹300.47 lakh (RHP p.54).

03Where the money comes from

Source: (RHP p.155); the last two rows combine lines of the same table, our arithmetic.

Paramount Syntex customers: how concentrated the revenue is

Source: (RHP p.270) and (RHP p.271).

Revenue is spread across more customers than in FY24, but the top ten still brought 54.81% of FY26 revenue, and the identities of the top ten changed between years (RHP p.26). There are no long-term agreements with customers or suppliers (RHP p.25). By state, Punjab was 90.64% of FY26 sales, against 98.12% in FY24; Maharashtra was 4.31% and Uttar Pradesh 3.30% in FY26 (RHP p.32). The only export sales in the three years were ₹50.72 lakh in FY25 (RHP p.32).

04The growth record

Paramount Syntex financials: revenue, profit and margins

Source: KPI table (RHP p.134), cash flow (RHP p.55), borrowings as long-term plus short-term borrowings (RHP p.53).

Our arithmetic from the KPI table: revenue grew about 14.7% a year from FY24 to FY26, EBITDA about 57.9% and profit after tax about 220.8%; EBITDA margin rose 914 basis points and PAT margin 991 basis points (RHP p.134). Revenue grew 21.17% in FY25 and 8.55% in FY26 (RHP p.134).

Two points under the table. FY24 other expenses of ₹888.36 lakh included a ₹679.20 lakh provision for advances to suppliers and business associates that became doubtful (RHP p.54, RHP p.55), and FY24 tax included ₹253.71 lakh for earlier years (RHP p.54); both depress the FY24 base for the growth rates. FY26 other income of ₹48.35 lakh was 2.5% of that year's profit before tax of ₹1,914.56 lakh, our arithmetic (RHP p.54).

Trade receivables were ₹1,260.75 lakh, ₹2,114.21 lakh and ₹2,539.76 lakh at the three year ends, or 50, 69 and 76 days of revenue, our arithmetic (RHP p.53, RHP p.54); the prospectus gives 49, 68 and 76 days and calls them the cash conversion cycle (RHP p.31).

05What the growth is made of

Revenue rose ₹2,925.13 lakh from FY24 to FY26. Acrylic and wool yarns added ₹2,786.15 lakh and cloth ₹712.24 lakh, while polyester yarn fell ₹571.22 lakh and nylon yarn ₹1,293.26 lakh, our arithmetic from the product table (RHP p.155). A new line, raw wool and raw waste, brought ₹585.38 lakh in FY26 (RHP p.155).

The prospectus attributes the FY26 increase to "increase in the volume of business" (RHP p.267), but gives no volumes in kilograms, so the increase cannot be separated into volume and price. The certified capacity table shows production rising in each section, with overall utilisation of 76.97%, 83.31% and 88.77% in the three years, but the table carries no unit (RHP p.164).

The margin change is larger than the revenue change. Cost of goods sold fell from 82.78% of revenue in FY25 to 74.97% in FY26 (RHP p.36). The company attributes the lower FY26 material cost to "improvement in cost structure" and lower purchases of raw materials (RHP p.268). It does not break the change down by price, mix or yield.

06Earnings quality

The item that needs explaining is short-term loans and advances, which rose from ₹70.07 lakh at March 2024 to ₹1,303.77 lakh at March 2026 (RHP p.53). The cash flow statement shows ₹944.15 lakh of that increase in FY26 alone (RHP p.55). The related-party balances at March 2026 include ₹348.17 lakh of trade advances to Paraspin Impex Private Limited and ₹671.29 lakh to K.K. Impex, both described as under the same management (RHP p.60).

Kumkum Arora is the proprietor of K.K. Impex, and both promoters are directors of Paraspin Impex (RHP p.182). The prospectus does not say what the advances are for or when goods or machines will be delivered against them.

A second point is consistency. The two related-party balance tables give different year-end advances due from the promoters: ₹112.81 lakh and ₹6.44 lakh on one page (RHP p.60), and ₹108.44 lakh and ₹110.08 lakh on another (RHP p.208). The prospectus does not reconcile them. Read from the filing: the FY24 purchase of ₹1,027.21 lakh from Paramount Dye Tec equals the amount shown for Supplier 2 in that year's supplier table (RHP p.26, RHP p.59).

07The balance sheet

At March 2026 borrowings were ₹3,324.80 lakh: ₹555.11 lakh long-term and ₹2,769.69 lakh short-term (RHP p.53). Of the total, ₹3,312.33 lakh was secured, including cash credit of ₹1,945.75 lakh from HDFC Bank and ₹495.80 lakh from Axis Bank, a ₹325.70 lakh machinery loan from Mahindra and Mahindra Financial Services and HDFC term loans (RHP p.273). The unsecured part was ₹12.47 lakh from Punit Arora & Sons (HUF), repayable on demand (RHP p.273). Cash was ₹30.77 lakh (RHP p.53).

Source: (RHP p.53).

Debt to equity was 0.78 times at March 2026 (RHP p.136). Contingent liabilities were ₹131.33 lakh: income-tax ₹29.34 lakh, TDS ₹11.09 lakh and GST ₹90.90 lakh (RHP p.57). The position after the issue cannot be worked out, because the issue price and so the proceeds are not stated; none of the objects is debt repayment (RHP p.88).

08What the money is for

Paramount Syntex IPO objects: what the money is for

Source: (RHP p.88), (RHP p.128).

The ₹6,167.71 lakh comes from fourteen quotations, including GST where charged (RHP p.126):

Source: (RHP p.91) to (RHP p.106), summary (RHP p.125) and (RHP p.126); the last two rows combine vendors, our arithmetic.

The object is titled purchase of machinery at existing facilities (RHP p.88), but ₹1,023.30 lakh of it is civil construction quoted by Rainbow Engineering Solutions (RHP p.105). No orders have been placed and no definitive agreement signed with any vendor (RHP p.127). The LMW quotation is dated May 1, 2026 with a validity of 90 days, and the prospectus states that all quotations remain valid on its date (RHP p.91). The foreign-currency quotations are not hedged (RHP p.39). The money is to be spent in FY27 (RHP p.89). The company expects to hire 100 to 150 more people (RHP p.126). CARE Ratings Limited is the monitoring agency (RHP p.66).

Into the business: the whole issue, up to 64,40,000 new shares; the rupee amount depends on a price the prospectus does not state (RHP p.1). To selling shareholders: nothing; there is no offer for sale (RHP p.1).

09Who is selling

Paramount Syntex IPO offer for sale: who is selling

No one. The whole issue is new shares issued by the company (RHP p.1).

10Promoters

The promoters are Punit Arora and Kumkum Arora (RHP p.197), who the prospectus states are spouses (RHP p.186). Punit Arora, 47, has been a director since January 8, 2008 and chairman and managing director since July 19, 2024, with 18 years of experience and higher secondary education according to the prospectus, and looks after production and marketing (RHP p.182, RHP p.185). Kumkum Arora, 45, joined the board on July 24, 2020, became whole-time director on July 19, 2024, holds a BA and looks after human resources and store purchase (RHP p.182, RHP p.183, RHP p.185).

Other interests: both promoters are directors of Paraspin Impex Private Limited, Punit Arora is a director of PSPL Dyers and Processors Private Limited, and Kumkum Arora is the proprietor of K.K. Impex (RHP p.182). The group entities also include Paramount Dye Tec Limited and Welldone Cottex Private Limited, whose directors include Kunal Arora and Palki Arora (RHP p.202, RHP p.203); the promoter group list names Kunal Arora as Punit Arora's brother (RHP p.199). Paramount Dye Tec makes yarns (RHP p.203). The company says the group businesses are in the same industry but not in identical lines of business (RHP p.204).

Pay was ₹36.00 lakh a year to Punit Arora and ₹12.00 lakh a year to Kumkum Arora in each of FY24 to FY26 (RHP p.58). The approved ceilings are ₹100.00 lakh a year each (RHP p.187). No promoter shares are pledged (RHP p.81). The two factory units are leased from Kumkum Arora at ₹9,000 and ₹12,000 a month, and the head office from Punit Arora at ₹8,000 a month (RHP p.33, RHP p.34).

Promoter economics: the average cost of the promoters' shares is ₹2.16 for Punit Arora and ₹6.45 for Kumkum Arora (RHP p.82). The share events:

• March 25, 2013 and March 31, 2014: allotments at ₹200 a share, including 14,500 to Punit Arora and 12,450 in all to Kumkum Arora (RHP p.76, RHP p.77).
• April 2011 to March 2017: Punit Arora received 3,30,900 shares by gift from family members and HUFs (RHP p.80, RHP p.81).
• March 7, 2024: a 30-for-1 bonus issue of 1,03,00,500 shares to the two promoters (RHP p.76).
• April 15, 2024: Punit Arora transferred 10 shares each to four people at ₹130 (RHP p.81).
• May 9, 2024: 13,15,532 shares allotted to Rajasthan Global Securities Private Limited at ₹61 (RHP p.76, RHP p.77).
• April 30, 2025: Punit Arora acquired 3,27,868 of those shares from Rajasthan Global Securities at ₹61 (RHP p.81).

The weighted average price of the last five transactions is ₹60.99 a share (RHP p.138).

11Who already owns it

Paramount Syntex promoter holding before and after the IPO

Source: (RHP p.79); the after-issue column is our arithmetic on 1,83,99,382 shares (RHP p.51).

The company has seven shareholders (RHP p.82). The promoters hold 91.74% before the issue and 59.63% after it (RHP p.79, RHP p.82). One year before the prospectus Rajasthan Global Securities Private Limited held 10.99% (RHP p.80); it no longer appears, and Kirti Behal, a public shareholder, holds 8.26% (RHP p.79). The pages read do not state when or at what price Kirti Behal acquired the shares. No fund or institution holds shares. The promoters' contribution of 37,00,000 shares, 20.11% of the enlarged capital, is locked in for three years (RHP p.83). The promoters and promoter group will not take part in the issue (RHP p.87).

12What changed just before the IPO

• FY24: ₹679.20 lakh of advances to suppliers and business associates for a planned expansion was fully provided for (RHP p.29).
• November 21, 2023: FIR registered in Ludhiana on a complaint including one by Punit Arora, alleging a fraud using fake dealership documents (RHP p.281).
• March 7, 2024: 30-for-1 bonus issue (RHP p.76).
• May 9, 2024: preferential allotment to Rajasthan Global Securities at ₹61 a share (RHP p.76).
• July 18, 2024: conversion to a public company (RHP p.179).
• July 19 to October 22, 2024: new designations for the promoters and the appointment of independent directors (RHP p.189).
• April 30, 2025: Punit Arora bought 3,27,868 shares from Rajasthan Global Securities at ₹61 (RHP p.81).
• July 5 and 7, 2025: Rajesh Mehru & Co. resigned as statutory auditor and Aggarwal Pawan & Associates was appointed (RHP p.65).
• FY26: loans of ₹578.12 lakh to Punit Arora and ₹229.69 lakh to Kumkum Arora, of which ₹520.99 lakh and ₹108.56 lakh were recovered in the year (RHP p.58, RHP p.59).
• December 8, 2025: work premises leased from Paramount Dye Tec Limited at ₹3,60,000 a month, used as a scrap yard (RHP p.170).
• December 14, 2025: income-tax demand of ₹3,47,98,590 for AY 2024-25 (RHP p.278).
• Margins: EBITDA margin moved from 10.19% in FY24 to 19.33% in FY26 (RHP p.134).

13Capacity and expansion

Source: (RHP p.164), certified by a chartered engineer on September 16, 2026. The table gives no unit and says the figures are annualised.

Overall utilisation was 88.77% in FY26 (RHP p.164). The objects chapter describes utilisation as averaging 70% to 83% (RHP p.90); the prospectus does not reconcile the two. Installed capacity was the same in all three years (RHP p.164).

The issue-funded machines go into the existing site at Village Mangarh and Koom Kalan (RHP p.90). The prospectus says capacity in fibre processing, spinning, tow dyeing and hank dyeing "will increase substantially" but gives no capacity after the expansion in any unit, and no commissioning date beyond deploying the money in FY27 (RHP p.90, RHP p.89). None is estimated here.

14Market size and industry structure

Paramount Syntex industry: market size and growth

As claimed: the industry chapter quotes public websites, IBEF and The Business Research Company, and the prospectus names no industry report commissioned by the company; it says the data has not been verified by the company or the lead manager (RHP p.21, RHP p.143, RHP p.151). According to those sources, the global textile market was $617.97 billion in 2024 (RHP p.143), and India produced 2.15 million tonnes of fibre and 5,185 million kg of yarn in 2022-23 (RHP p.148). The paragraph with the global figure is printed four times on the same page (RHP p.143).

The part that is addressable: acrylic, blended and synthetic yarn and recycled acrylic fibre sold to knitters and weavers, almost all in Punjab (RHP p.32). The prospectus does not size that market. The chapter says the decentralised power loom, hosiery and knitting sector is the largest part of Indian textiles, without a figure (RHP p.147).

What the company is today: FY26 revenue of ₹12,202.99 lakh (RHP p.134). The prospectus gives no volume in kilograms, so its share of national yarn output cannot be worked out.

Size over time: The Business Research Company projects the global market at $660.13 billion for 2025, 6.8% above 2024 (RHP p.143). For India, IBEF says the textiles and apparel market is projected to grow 10% a year to US$ 350 billion by 2030, without stating its current size (RHP p.148); that is IBEF's projection, not newboard's.

Textile exports, including handicrafts, were US$ 35.9 billion in FY24 and US$ 9.17 billion in April to June 2024 (RHP p.148). The sector is put at 2.3% of GDP, 13% of industrial production and 12% of exports, with about 4.5 crore workers (RHP p.148). The chapter's first pages are on the world and Indian economies and do not bear on yarn directly (RHP p.143 to RHP p.147).

Segments: the chapter describes a range from hand-spun and hand-woven textiles to capital-intensive mills, built on natural fibres and man-made fibres such as polyester, viscose, nylon and acrylic (RHP p.147). It gives figures for home textiles, US$ 10.78 billion in 2023, and for technical, medical and composite textiles (RHP p.148), but none for acrylic or other man-made yarn, the company's segment. The company's yarns go into sweaters, caps, gloves, socks, blankets and home furnishings (RHP p.154).

What drives demand: The Business Research Company attributes past growth to population growth, demand for man-made fibres, government initiatives, growth in emerging markets and a ban on plastic usage (RHP p.143). IBEF cites Crisil's projection of 8% to 10% revenue growth for organised apparel retail in FY25 on the monsoon, easing inflation and the festive and wedding seasons (RHP p.147), and government schemes for textile parks and technology upgrades, with ₹1,148 crore for the PLI scheme in Budget 2025-26 (RHP p.147, RHP p.148). The company's own SWOT table lists growing domestic demand for acrylic fibre and yarn (RHP p.162).

Structure: the company describes the industry as fragmented, with many small and medium manufacturers, no significant entry barriers, and competition from organised and unorganised players (RHP p.264, RHP p.32). Price and quality are the main deciding factors, it says (RHP p.264). The chapter names no acrylic yarn competitor; the companies in its developments list include Sutlej Textiles, Vardhman, Arvind, Grasim and Indo Count, and two entries concern recycling, by Vardhman and by Arvind with PurFi Global (RHP p.149).

Inputs and trade: the chapter does not discuss acrylic fibre prices or imports. Raw material is partly imported, and the SWOT table lists dependence on imported raw materials as a weakness (RHP p.161). The company sources from India, Thailand and Shanghai, China, with no long-term contracts, which the prospectus says exposes it to price volatility (RHP p.36). The chapter calls India the world's third largest exporter of textiles and apparel, with the US 32.7% of FY24 exports (RHP p.148); the company's only exports were ₹50.72 lakh in FY25 (RHP p.32).

Rules: the chapter states a uniform 12% GST rate on man-made fabrics, man-made yarns and apparel from January 1, 2022, and 100% foreign investment under the automatic route (RHP p.151, RHP p.149). The company holds ISO 9001, ISO 45001 and ISO 14001 certificates (RHP p.152).

What the chapter says can go wrong: the textile pages list no risks. The IMF material says risks are tilted to the downside: higher tariffs, uncertainty, and geopolitical tensions that could disrupt supply chains and push commodity prices up (RHP p.143). The company's SWOT table lists intense competition and price wars, economic swings and currency rates, trade barriers, stricter environmental rules and technological disruption (RHP p.162), and the management discussion says competitors adding capacity could intensify competition (RHP p.264).

15Competitive position

Paramount Syntex competitors

The prospectus names no competitor in its business chapter and gives no competitor figures beyond the listed peers in section 15 (RHP p.168). It says the company has kept growing because of product quality and supplying products to specified requirements (RHP p.168).

The stated reasons customers use it are in-house dyeing, spinning, bulking and packing, a range of acrylic and dyed yarns, and a base of repeat customers (RHP p.160). It holds ISO 9001, ISO 45001 and ISO 14001 certificates (RHP p.152) and two registered trademarks, a device mark in class 24 and the word mark "PSPL" in class 23 (RHP p.169). No customer is bound by a long-term agreement (RHP p.25), and machinery breakdown is not insured (RHP p.31).

16Peers the company named

Paramount Syntex listed peers

Peers named in the offer document: Shiva Texyarn Limited, Sangam (India) Limited and Donear Industries Limited (RHP p.133).

Source: (RHP p.137) for revenue, margins and RoE; P/E at BSE closing prices of September 15, 2026 (RHP p.133).

The prospectus itself says the peers are not strictly comparable given the company's nature and turnover (RHP p.133). Sangam (India) is about 26 times Paramount Syntex's revenue, Donear Industries about 7.5 times and Shiva Texyarn about 2.8 times, our arithmetic (RHP p.137). The basis for issue price chapter also gives an industry P/E of 75.28 highest, 14.88 lowest and 45.08 average without naming the companies behind it (RHP p.132).

17Valuation at the issue price

Paramount Syntex IPO valuation and P/E

The prospectus leaves the price band, the bid lot and every price-based ratio blank ([●]); the band is to be advertised at least two working days before the issue opens (RHP p.2, RHP p.132). No price was available from the exchange for this study. This section therefore computes no market capitalisation, P/E, price to book or enterprise value for the issue.

Source: shares (RHP p.51), EPS (RHP p.131), net asset value (RHP p.133); profit per share on post-issue shares is our arithmetic, ₹1,386.82 lakh over 1,83,99,382 shares (RHP p.54). The weighted average EPS over three years, as the prospectus weights it, is ₹7.91 (RHP p.131). The peers the prospectus names traded at 9.83, 23.35 and 33.15 times earnings on September 15, 2026 (RHP p.133). The last five share transactions averaged ₹60.99 a share (RHP p.138), and the company states it has not issued shares below the issue price in the year before the prospectus (RHP p.77).

18Risks, in plain words

Paramount Syntex IPO risks

Customers: there are no long-term agreements with customers (RHP p.25) → an order not repeated is revenue gone at once → the top ten were 54.81% of FY26 revenue (RHP p.25).

Geography and one site: all manufacturing is at one site in Ludhiana (RHP p.24) and most customers are in the same state → a local disruption reaches both production and sales → Punjab was 90.64% of FY26 sales (RHP p.32).

Suppliers and imports: fibre and fibre waste come partly from Thailand and China, with no long-term contracts (RHP p.36) → price or supply changes pass straight into cost → the top ten suppliers were 62.61% of FY26 purchases (RHP p.25), and cost of goods sold was 74.97% of revenue (RHP p.36).

Money with related parties: trade advances and loans went to promoter-linked businesses and the promoters (RHP p.59) → recovery depends on the same people who control the company → ₹1,019.46 lakh of trade advances were outstanding at March 2026 (RHP p.60), after ₹679.20 lakh of earlier advances to outside parties was written off in FY24 (RHP p.29).

Working capital and debt: receivables and inventory grew faster than revenue → the gap is funded by bank credit → short-term borrowings were ₹2,769.69 lakh at March 2026 and finance costs ₹300.47 lakh in FY26 (RHP p.31), and operating cash flow was negative in FY24 and FY25 (RHP p.29).

Compliance record: GST returns, provident fund, ESIC and TDS payments and Registrar of Companies filings have been late, and records from 1996 to 2006 are unavailable (RHP p.26, RHP p.27) → penalties could follow → one CSR filing was 449 days late (RHP p.30), and GST returns were late in most months of FY25 and FY26 (RHP p.28).

Premises: the factory, head office and godown are leased, the factory from Kumkum Arora (RHP p.34) → a lease not renewed would force a move → the godown lease at ₹1,15,000 a month runs only to March 31, 2027 (RHP p.34).

Issue-specific: no orders have been placed for the machines (RHP p.27); foreign-currency quotations of about ₹3,840 lakh are unhedged, our arithmetic from two quotations (RHP p.125, RHP p.126); general corporate purposes and issue expenses are left blank (RHP p.88).

19Litigation and regulatory matters

Cases against Paramount Syntex and its promoters

The risk summary counts nine tax matters against the company involving ₹528.92 lakh, and fifteen tax matters against group entities involving ₹5,066.95 lakh (RHP p.23, RHP p.24). There are no criminal proceedings or regulatory actions against the company (RHP p.275). There are no criminal or civil proceedings against the promoters; one income-tax notice to Kumkum Arora for AY 2017-18 shows no demand outstanding (RHP p.280).

Punit Arora is a complainant in FIR No. 224 of 2023 in Ludhiana, which alleges a fraud using fake Future Group and Reliance dealership documents; the case is at trial with the next hearing on October 5, 2026 (RHP p.281). In a related petition, Punit Arora says about ₹10.91 crore was traced from Paramount Syntex Pvt. Ltd. and K.K.

Impex; the High Court dismissed that petition for want of prosecution on February 26, 2026 (RHP p.282). A petition by other complainants, in which Punit Arora is a respondent, is listed for March 4, 2027 (RHP p.282).

Paramount Dye Tec's AY 2024-25 assessment added ₹3,995.07 lakh to its income, mainly on shares issued at ₹21,500 each on converting a partnership, and the department has issued a notice proposing to treat its major shareholders as principal officers (RHP p.287, RHP p.288).

20Related-party transactions

Source: (RHP p.58) and (RHP p.59); loans given and the FY24 rent (₹36.00 lakh to the firm and ₹7.20 lakh to the company) are our arithmetic from the same tables.

The company also reimbursed Punit Arora for electricity of ₹149.68 lakh, ₹159.64 lakh and ₹67.98 lakh (RHP p.58), and received interest of ₹10.80 lakh and ₹3.60 lakh from the two promoters in FY26 (RHP p.58). Purchases of ₹184.72 lakh from Paraspin Impex appear for FY26 (RHP p.59). At March 2026 the company owed Paramount Dye Tec Limited ₹222.56 lakh in trade payables (RHP p.60).

What appeared or disappeared: the promoters stopped lending to the company after FY25 and the company began lending to them in FY26; trade advances to Paraspin Impex and K.K. Impex of ₹1,019.46 lakh appeared at March 2026; purchases from the Paramount Dye Tec firm stopped after FY24 and rent to Paramount Dye Tec Limited began (RHP p.59, RHP p.60).

21What the offer document does not say

Volumes sold and produced in kilograms are not disclosed, and the capacity table carries no unit. The customers and suppliers are not named. What the ₹1,019.46 lakh of trade advances to Paraspin Impex and K.K. Impex are for, and the terms and purpose of the FY26 loans to the promoters, are not stated. The prospectus does not say whether the ₹679.20 lakh written off in FY24 relates to the matters in FIR No.

224 of 2023. The two related-party balance tables are not reconciled. When and at what price Kirti Behal acquired 8.26% is not stated in the pages read. Capacity after the expansion is not given in any unit. Group company financial statements are referred to the company's website. The price band, bid lot, general corporate purposes amount and issue expenses are left blank, so there is no valuation at a price.

22Five questions for management

1. How many kilograms of yarn, fibre and cloth did the company deliver to customers in each of FY24, FY25 and FY26, and at what average price per kilogram?
2. What goods or machines are the ₹348.17 lakh advanced to Paraspin Impex and the ₹671.29 lakh advanced to K.K. Impex for, and how much had been delivered or repaid by September 2026?
3. On what terms and for what purpose were ₹807.81 lakh lent to the promoters in FY26, and what is the correct balance due from each at March 2026?
4. Who received the ₹679.20 lakh of advances written off in FY24, and has any of it been recovered?
5. What installed capacity, in kilograms a year, will each section have after the ₹6,167.71 lakh of machinery and buildings is commissioned, and by what month?

1Sources and cited facts

This study was read from 1 document the company filed. The 178 figures it cites are listed under the document each came from, with the page and the sentence as printed.