Paradeep Phosphates debuts at 4.7% premium to the issue price of Rs 42 per share

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Paradeep Phosphates Limited (Paradeep), the second largest private sector manufacturer of non-urea fertilizers and Di-Ammonium Phosphates in terms of sales volume, made an at par listing on the bourses today which was as per the expectations of most of the market experts.

The shares of Paradeep, Orissa based fertilizer manufacturer climbed 4 percent on May 27, the listing day as was expected through the indications from the grey market where the issue did not command any significant premium.

“The IPO of Paradeep Phosphate, India's second-largest private-sector manufacturer of non-urea fertilizers, has shown a gloomy performance in the grey market with an unchanged premium of just Rs. 0.50 per share for the past four consecutive days”, said Sonam Srivastava, Smallcase Manager & Founder at Wright Research.

The stock opened at Rs 44, against issue price of Rs 42 on the NSE, while the listing price on the BSE was Rs 43.55.

The prevailing market sentiments have shaken the investor confidence to a large extent and they are now being cautious while partaking in such public issues.

“The overall market sentiment is not supporting the IPO listing these days and keeping in view the current market scenario, Paradeep Phosphates may list around its issue price on the listing day.”, said Ravi Singh Vice President and Head of Research-ShareIndia.

Experts were of the opinion that the issue was fairly valued and thus was subscribed 1.75 times on the last day of subscription.

The public issue was subscribed 3.01 times in the qualified institutional buyers (QIB) category, 1.37 times in the retail category, and 0.82 times in the non-institutional investors (NII) category.

The company intends to utilize the net proceeds from the fresh issue to part-finance the acquisition of the manufacturing facility in Goa, repayment/prepayment of part of its borrowings and general corporate purposes.

The company will not get any proceeds from the OFS portion, the proceeds of which will entirely go to the promoters.

Incorporated as ‘Paradeep Phosphates Limited’ in December, 1981, 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) and other fertilizers used in crop cultivation. They are also engaged in the trading, distribution and sales of Muriate of Potash (MOP), Ammonia, Speciality Plant Nutrients (SPN) and City compost. Their fertilizers are marketed under some of the key brand names in the market ‘Jai Kisaan – Navratna’ and ‘Navratna’.

As of March 31, 2021, the total annual granulation capacity of DAP and NPK production plant was approximately 1.50 MMT (million metric tonnes); the total annual installed capacity of Sulphuric acid production plant was approximately 1.30 MMT while the total annual installed capacity of Phosphoric acid production plant was 0.30 MMT.

The company also has 2 captive power plants of 16 MW each, designed to run on the excess steam generated by the Sulphuric acid production plant.

As of March 31, 2022, the company's network includes 4,761 dealers and over 67,150 retailers serving over five million farmers in India.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.