All eyes will be on Paradeep Phospates Limited on Friday. The shares of Paradeep Phospates Limited will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on May 27 at 10:00 AM. The IPO of Paradeep Phospates (IPO) received a muted response from investors during the subscription period. The public offer was booked 1.75 times over the 26.86 crore shares offered.
Paradeep Phospates IPO open for registration between 17-19 May. The price range for the IPO of Paradeep Phospates was set at Rs 39-42 per share of the share. The IPO of Paradeep Phospates involved a new share issue worth Rs 1,004 crore and an offer for sale (OFS) of 11,85 crore shares by promoters and other selling shareholders. As part of OFS, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) had a plan to sell 60,18,493 shares. The government of India is said to sell up to 11,24,890,000 shares. The government owned a 19.55 percent stake in the company.
The company does not receive any proceeds from the OFS portion. From the net proceeds of the new issuance, Rs 520 crore will be used to partially finance the acquisition of the Goa facility and another Rs 300 crore will be used for the repayment/prepayment of the loans contracted by the company.
Paradeep Phosphates IPO received bids of over 47.02 crore shares against the total issue size of over 26.86 crore shares, according to data available from the NSE. The portion allocated to qualified institutional buyers (QIBs) was subscribed 3.01 times. Shares allocated to non-institutional investors were subscribed 0.82 times. The private investor quota (RII) was booked 1.37 times, the data showed.
Paradeep Phospates IPO Gray Market Premium
Paradeep Phospates unlisted stocks received lukewarm responses in the gray market. Paradeep Phospates IPO ordered a gray market premium of Rs 3 on May 16-19. However, according to Chankya Ni Pothi, the gray market premium of Paradeep Phospates fell to Rs 0.20 before listing on May 26. Low interest in the unlisted market points to a poor stock market listing on the domestic exchanges.
Paradeep Phospates List Today: What To Expect
Speaking about the share price of Paradeep Phosphates, Ravi Singhal, Vice-Chairman of GCL Securities said: “Paradeep Phosphates shares are expected to open at par. However, a lot will depend on the kind of opening the Indian market gets.”
“The issuance was at reasonable valuations with a strong outlook, but jittery sentiments from secondary markets weigh on sentiment,” said Abhay Doshi, co-founder of privately held Arena.
Speaking to investors, Ravi Singh, vice president and head of research for ShareIndia said: Paradeep Phosphates is an established name in the Indian fertilizer industry, backed by an extensive sales and distribution team. The company has shown robust growth and stable business model with an average earnings per share of Rs. 3.52 and an average RoNW of 11.91 percent for the last three fiscal years. Also, a normal monsoon forecast coupled with continued geopolitical pressures on the supply of raw materials will contribute to the positive outlook for the general industry. The issue price of the IPO is reasonably priced and can be considered for long and medium term investments.
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