Check the price of Paradeep shares on the BSE and NSE when the company launches at a 4.76 percent pr
Paradeep Phosphates IPO Listing: Today marked the D-street debut of Paradeep Phosphates shares. At a premium of 4% over its BSE issue price of Rs 42, Paradeep Phosphates was listed at Rs 43.55. The counter was offered at a premium of around 5% on the National Stock Exchange (NSE) at Rs 44 as opposed to the stated issue price. On the final day of subscription, the public offer was subscribed 1.75 times. The public offering had 3.01 times as much interest from qualified institutional buyers (QIBs), 1.37 times from consumers, and 0.82 times from non-institutional investors (NICs).
The business plans to use the net proceeds from the new issuance to pay back or refund a portion of its borrowings, purchase the manufacturing facility in Goa, and for other general corporate reasons. The earnings from the OFS component will go to the promoters; no money will be given to the corporation.
The company, which was founded in 1981 and is based in Paradeep, Orissa, raised Rs 1,501 crore through a combination of a new equity share issue worth up to Rs 1,004 crore and an offer-for-sale (OFS) of 118,507,493 equity shares worth up to Rs 10 apiece and up to Rs 497.73 crore. The equity shares, which had a face value of Rs. 10 each, were issued to investors at the higher end of the price range that the corporation had set. In the private sector, Paradeep Phosphates is India's second-largest producer of di-ammonium phosphates (DAP) and non-urea fertilizers.
Financially speaking, Paradeep Phosphates has always been profitable. For FY21, the company reported revenue of Rs 5164.73 crore as opposed to Rs 4192.87 crore the previous year. Compared to the same period the previous year, the net profit was Rs 223.27 crore instead of Rs 193.22 crore. The business has already eclipsed the revenue totals it attained in FY21 for the first nine months ending in December 2021. During the first nine months of FY22, the company reported revenues of Rs 5,959.7 crore and a net profit of Rs 362.78 crore, both of which were higher.
What Should Investors Do Post-Listing - Buy, Hold, or Sell?
Head of Research at Swastika Investment Ltd. Santosh Meena stated: "Paradeep Phosphates Ltd. launched at Rs. 44, which is 5% over its issue price. The company's lackluster listing can be linked to the state of the market and the investors' ambivalent reaction. The business, which is among the biggest producers of fertilizers without urea, has a competitive advantage due to its location and backward integration. However, the business is engaged in a highly regulated sector.
cyclical in nature and highly dependent on the agricultural industry; the firm is affected by climatic factors. Although the issuance was competitively priced, interested investors may continue to buy shares after the listing if they wish to do so for the long term. Applicants for listing gains may continue to use a stop loss of Rs 40."
Proficient Equities Private Limited's founder and director, Manoj Dalmia, had previously stated: "Considering the Government's initiatives on the agriculture sector, this company has good possibilities in the future. The cost of the problem is too low and it is worthwhile in the long run."