Paramount Printpackaging Ltd IPO sold out On very first day

The IPO by the Paramount Printpackaging Limited was oversubscribed on the very first day of Issue opening today, according to data available on the NSE site. The Company operating a fully automated plant at Navi Mumbai, entered the capital markets today with a public issue of 1,30,94,175 equity shares of Rs 10 each in the Price band of Rs 32 to Rs 35 and the Issue was subscribed 1.52 times with bids totaling around two crore equity shares at the end of the day. Onelife Capital Advisors Ltd is the sole Book Running Lead Manager to the Issue.

The Paramount Printpackaging proposes to deploy the net proceeds of the Issue for setting up new facilities for manufacturing of high end duplex board cartons, shippers and printed corrugated boxes at Gujarat as well as augment its long term working capital requirements. The Gujarat project is expected to be completed in Q3 of the current fiscal (FY 2011-12).

The company at present has the capacity to convert approximately 500 tons of paper board every month, which in terms of finished products works out to an average of 20 lac cartons a day. It has diversified further by offering innovative packaging solutions to its clients. Paramount Printpackaging caters to over 100 clients in various sectors such as FMCG, Pharma, Electricals, Auto Ancillary and Food and Beverages. The proposed Gujarat plant will add high end duplex board carton capacity by 15 lac cartons per day, along with 5 tonnes per day of shippers and 7 lac tones per day of printed corrugated cartons.