Paramount Speciality Forgings IPO

Paramount Speciality Forgings Limited was originally established as a partnership firm in the name and style of `Paramount Forge’ under the Partnership Act, 1932 with the Registrar of Firms, Mumbai on November 01, 1994. Subsequently, their firm was converted from a Partnership Firm to a Limited Liability Partnership (LLP) and consequently the name of their firm was changed to `Paramount Speciality Forgings LLP’, and a fresh certificate of incorporation dated June 27, 2019, was issued to their LLP by the RoC. The constitution of their LLP was further changed from LLP to a Public Limited Company and consequently the name of their LLP was changed to `Paramount Speciality Forgings Limited’, and a fresh certificate of incorporation dated May 05, 2023, was issued to their Company by the Registrar of Companies, Mumbai at Maharashtra. The corporate identification number of their Company is U24109MH2023PLC402307.

The forging industry is a key link between critical manufacturing segments–metal suppliers (both ferrous and nonferrous) and end user industries. Over the years, the Indian forging industry has evolved from being a labourintensive industry to capital-intensive manufacturing sector. The forging industry of India provides direct employment to about 95,000 people. The small and very small units are mainly dependant on manual labour, however medium and large units are more mechanized. Current share of auto sector is about 58% of total forging production while the rest is with the non-auto sector. Changes in Indian automobile industry directly impact Indian forging industry, because the forging components form the backbone of the Indian automobile industry.

There are manufacturers of steel forgings in India with range of forged Products. Since inception in 1996, there have expanded their business and scale of operations and have invested in an array of machinery to increase and diversify their production capabilities. Today, there have the capacity to manufacture and supply forged components weighing from 1Kg up to 4 metric tons in rough or finish-machined condition.

Paramount Speciality Forgings IPO Strengths

• Long-standing relationships with customers across industries.
• Manufacturing Facilities.
• Quality and focus on customer satisfaction.
• Experienced Promoters and Management Expertise.
• Track record of healthy financial performance.

Paramount Speciality Forgings IPO Risks

• There do not have any long-term agreements with their customers. If their customers choose not to source their requirements from us or manufacture such products in-house, their business and results of operations may be affected.
• Demand for their products is related to growth and trends of their end user industry. A decline in sales of their customers may adversely affect the demand for their products which in turn would adversely impact their business, financial condition, results of operations and prospects.
• There obtain a substantial portion of their raw materials from a limited number of suppliers, and there do not have long-term contracts with their suppliers. If one or more of their top suppliers were to suffer a deterioration of their business, cease doing business with us or substantially reduce their dealings with us, their business, results of operations, cash flows and financial condition may be adversely affected.