Analysis and Insights into the world of IPOs and investing in India

Monday, April 25, 2011

Paramount Printpackaging Limited IPO finally subscribed 3.92 times

The IPO of Paramount Printpackaging Limited, engaged in the business of print and packaging solutions, received 3.92 times subscription on an overall basis. The price band for the 13,094,175 Equity Shares of Rs.10/- each was set at Rs.32/- to Rs.35/- per equity share with a minimum order quantity or the bid lot of 150 Equity Shares and in multiples thereof

Although the overall subscription figure of close to 4 times, in itself, can be considered as decent, a magnified view on the category-wise subscription reveals quite an unusual picture. The IPO has been subscribed only 0.33 times in the QIB category, while the Retail Category has been oversubscribed by a startling 9.31 times. With a bleak participation from the QIB Investors, and somewhat moderate subscription from HNI category, such high Retail participation sounds quite enigmatic

Earlier, Credit Rating Agency ICRA had assigned an IPO Grade 2/5 to the IPO of Paramount Printpackaging Limited. ICRA assigns IPO Grading on a scale of IPO Grade 1 to IPO Grade 5, with IPO Grade 1 indicating poor fundamentals and IPO Grade 5 indicating strong fundamentals. An IPO Grade 2/5 from ICRA indicates that as per ICRA, the company has "Below Average Fundamentals"

Click here to view category-wise subscription status of the IPO!


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