Paradeep Phosphates IPO starts today: Learn about GMP, Price Band and other Key Details

The three-day initial public offering (IPO) of Paradeep Phosphates Limited begin today and end on May 19. The price range has been set at 39-42 per share by the fertilisers firm. A day before the start of its share sale, it raised a little over 450 crore from anchor investors. The IPO comprises of a fresh issue of shares for Rs 1,501 crore and an offer by the company’s promoters and shareholders to sell 11.85 crore shares.

On the commencement of the IPO, retail investors bought for 52 percent of the shares made aside for them, out of a total of 13.15 crore, while non-institutional investors competed for 3% of the shares. Qualified institutional purchasers have bought 4,900 shares of the issuance out of an allotment of 8.07 crore.

 IPO: Price Band

The issue’s price band has been set at Rs 39-42 per equity share with a face value of Rs 10 apiece, with booking closing on May 19.

IPO: Objective

The proceeds of the new offer (Rs 1,000 crore) would be used to partially fund the purchase of a fertiliser manufacturing plant in Goa, as well as debt repayment and other business reasons.

 IPO: Lot size

Bids can be made for a minimum of 350 Equity Shares and in multiples of 350 equity shares thereafter.

 IPO: Today’s GMP

According to market experts, today’s grey market premium (GMP) for Paradeep Phosphates shares is $3. On May 27, 2022, the company’s shares are planned to be listed on the BSE and NSE stock markets.

About the Company

The firm was founded in December 1981 and is principally engaged in the production, trading, distribution, and sales of a range of complex fertilisers, including DAP, three NPK grades (NPK-10, NPK-12, and NP-20), zypmite, phospho-gypsum, and hydroflorosilicic acid (HFSA).

Muriate of potash (MOP), ammonia, specialty plant nutrients (SPN), and city compost are also traded, distributed, and sold by the corporation. Their fertilisers are sold under the brand names ‘Jai Kisaan – Navratna’ and ‘Navratna,’ among others.

In the nine months ending December 2021, the firm had a profit of Rs 362.781 crore, with income from operations increasing considerably to Rs 5,183.94 crore. The companies include Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets are the book running lead managers to the issue.