Paragon Fine and Speciality Chemical's initial public offering (IPO) was oversubscribed by 33 times on its second day. The company, which specializes in the production of chemicals for various industries including cosmetics, pharma, agrochemicals, pigments and dyes, saw investors acquiring 12.63 crore shares against an offer of 36.96 lakh shares.
The Rs 51.66-crore public issue was subscribed by 11.07 times on the first day. Retail participants, high networth individuals, and Qualified Institutional Buyers (QIB) subscribed 48.4, 39.3, and 14.63 times their respective quotas.
The IPO only includes a fresh issue by the company and is set to close on October 30th. The net proceeds from the IPO will be used for various purposes such as factory construction and machinery expansion at their Ahmedabad facility. Additionally, a portion of the funds will be allocated for debt reduction by Rs 12.90 crore and Rs 13 crore for working capital requirements.
Anchor investors have shown significant interest in the IPO with Morgan Stanley (NYSE:MS), MAIQ Growth Scheme, Nova Global Opportunities Fund, LC Radiance Fund VCC, and Finavenue Growth Fund investing Rs 14.7 crore in the total issue.
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