Paramatrix Technologies makes muted debut, shares list at 5% premium on NSE SME

Shares of Mumbai-based tech services company Paramatrix Technologies Ltd made a muted trading debut on Wednesday, September 4, listing at a nearly 5% premium on the NSE SME platform.

The Paramatrix Technologies stock opened the session at ₹115.05 apiece compared to its initial public offering (IPO) price of ₹110. Within minutes of trade, the stock hit the 5% upper circuit at ₹120.8 apiece.

Given that the minimum bid quantity in the Paramatrix Technologies IPO was 1,200 shares, successful bidders who were allotted shares in the primary issue would have been sitting on a profit of ₹6,060 per lot (₹5.05 x 1,200) as soon as trading began in the stock.

Markets were expecting a subdued listing for Paramatrix Technologies on the back of tepid investor response to the issue.

The ₹33.84-crore Paramatrix Technologies IPO, which was open for subscription from August 27 to August 30, was subscribed just over 9 times during the three-day bidding period. The company had received bids for 2.65 crore shares as against the 29.2 lakh shares on offer.

While the retail investors’ portion was overbooked by 11.85 times, the non-institutional investors’ (NIIs) quota was subscribed 6 times.

Paramatrix Technologies IPO was a fixed-price issue comprising 30.76 lakh shares totalling to ₹33.84 crore. The offer was a combination of a fresh issuance of 27.59 lakh shares, aggregating to ₹30.35 crore, and an offer-for-sale (OFS) of 3.18 lakh shares, amounting to ₹3.5 crore.

Shares in the IPO were offered at the price of ₹110 per unit in a minimum lot size of 1,200 shares.

The selling shareholders in the OFS included promoter Mukesh Keshubhai Thumar who offloaded 3 lakh shares worth ₹3.3 crore, along with the company’s director Mahesh Pandurang Goriwale who sold 18,000 shares worth ₹19.8 lakh. The promoters’ stake in the company fell to 54.77% after the issue from 75.46% earlier.

Paramatrix Technologies had earlier said that it planned to utilise the net proceeds from the fresh issue towards funding capital expenditure for building Infrastructure, investment in a suite of accelerators to enhance the service offerings, geographical expansion in the Middle East and East Asia and for general corporate purposes.

About Paramatrix Technologies

Established in 2004, Paramatrix Technologies is an IT software services company that offers applications and technology solutions for large enterprises and mid-size businesses.

It focuses on digital technologies, operations and experiences, enabling enterprises to harness deep digital capabilities for enhanced productivity, superior customer experiences, and a competitive edge.

The company’s client list includes the BFSI (banking, financial services and insurance) sector, retail, manufacturing, sports, pharma and logistics.