Paradeep Phosphates IPO makes tepid debut on exchanges; shares list at nearly 5% premium

Paradeep Phosphates shares listing: Paradeep Phosphates IPO made a tepid debut on exchanges, NSE and BSE, on Friday. Shares of the fertiliser company were listed at Rs 43.55 per share on the BSE. It was a premium of 3.69% on the upper end of the price band of the issue. The fertilizer company has kept the price band at Rs 39-42 per share for this IPO. On the NSE, shares of Paradeep Phosphates opened at Rs 44 apeice, a gain of Rs 2 or 4.76% at the upper price band.  

Earlier, Zee Business Managing Editor Anil Singhvi had made a similar prediction for Paradeep Phosphates shares listing. The market guru had said the shares are expected to list a little above the issue price of Rs 42.  

The three-day public offering of the second largest private sector manufacturer of non-urea fertilizers in India had on closed May 19, 2022. The initial public offering of Paradeep Phosphates was subscribed 1.75 times on the last day. The portion reserved for retail investors was subscribed 1.37 per cent, the HNIs quota and QIBs portions received bids for 0.82 times and 3.01 times, respectively. 

Proceeds of fresh issue will be used to partly finance the acquisition of the fertiliser manufacturing facility in Goa and payment of debt and general corporate purposes. 

The company is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (NPK) (namely NPK-10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid (HFSA).   

They are also engaged in the trading, distribution and sales of Muriate of Potash (MOP), Ammonia, Speciality Plant Nutrients (SPN) and City compost. The fertilizers are marketed under the brand names ‘Jai Kisaan – Navratna’ and ‘Navratna’.  

Incorporated in 1981, PPL is a joint venture of Zuari Agro Chemicals Limited (ZACL) and OCP Group S.A. (OCP), which currently holds 80.45% of the equity share capital of the Company, with the balance being held by the Government of India.