Paramesu Biotech Limited is gearing up to launch its IPO following the submission of its Draft Red Herring Prospectus (DRHP) with SEBI. The company is the leading manufacturer of maize-based products offering a lot of varieties such as native maize starch, modified maize starch, liquid glucose, maltodextrin powder, and co-products including germs, gluten, fibre, corn, steep liquor, and enriched fiber. Being the top player in food ingredients manufacturing, the company has performed financially well in FY24, leading to a profit after tax of Rs. 34 crores. The company reported revenue from operations amounting to ₹628 crores in FY24. Let’s delve into further details about Paramesu Biotech Limited below.
Paramesu Biotech Limited Files DRHP Papers For Rs. 600 Crores IPO
Paramesu Biotech Limited has filed DRHP papers for an IPO worth Rs. 600 crores. It will include both equity shares and offers for sale. The fresh issue will be for Rs. 520 crores. While the offer for sale will be for Rs. 80 crores. The company will be using the funds for various purposes. While the main intent will be to repay the existing borrowings and expand its production. Paramesu Biotech Limited has a current capacity of 800 tonnes per day. It plans to enhance its production capabilities by establishing a new facility in Madhya Pradesh, designed to handle a capacity of 1,200 tonnes per day.
Paramesu Biotech is projected to need approximately ₹330 crores to establish the new plant, alongside ₹85 crores to be allocated for the repayment of existing borrowings. What remains will be used for general purposes. They are working continuously on the expansion. The company has 800 TPD of installed capacity at the moment, which is installed at the Devarapally facility in West Godavari, Andhra Pradesh along with its headquarters. The company operates in both domestic and international markets, offering a diverse range of products. It strives to expand its reach to new regions across India while actively pursuing opportunities for international growth.
Paramesu Biotech is leading in the starch industry with maize-based speciality products. It started in 2011 providing solutions to food, pharma, paper, and other industries. According to the company’s website, they have 20+ unique starches, Derivatives & Co-products with 800 tonnes of daily maize crushing capacity. Ananda Swaroop Adavani is the managing director of the company with Mani Swetha Tetali working as the whole-time director. Everyone is eagerly awaiting the IPO as it can be a great opportunity for investments. Stay tuned for more information on our website.