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Paradeep Phosphates IPO Day 2 highlights: Total subscription at 51%, retail portion booked 95%, NII 20%

Around 50 percent of the net offer will be reserved for QIBs, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.

May 18, 2022 / 05:03 PM IST
Paradeep Phosphates

Paradeep Phosphates

The initial public offering of Paradeep Phosphates, India’s second largest manufacturer of non-urea fertilisers and di-ammonium phosphates (DAP) in the private sector, was subscribed 51 percent at the close of day two with investors putting in bids for 13.62 crore shares against an IPO size of 26.86 crore units.

The company aims to mop up Rs 1,501 crore from a combination of fresh issue of equity shares aggregating up to Rs 1,004 crore and an offer-for-sale (OFS) of 118,507,493 equity shares of Rs 10 each, aggregating to Rs 497.73 crore. The OFS comprises 6.02 million shares by Zuari Maroc Phosphates Pvt Ltd (ZMPPL), a joint venture of Zuari Agro Chemicals and OCP Group SA, and up to 112.49 million shares by the government. ZMPPL has 80.45 percent stake, while the government holds around 19.55 percent in the company.

The price band for the offer has been fixed at Rs 39-42 per equity share of a face value Rs 10 each and the issue closes for booking on May 19.

Retail investors have bid for 95 percent of the shares set aside for them as against 13.15 crore, while the non-institutional investors’ portion was subscribed 20 percent. Qualified institutional buyers have subscribed to 14,700 shares of the issue against their quota of 8.07 crore shares.

Around 50 percent of the net offer will be reserved for QIBs, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.

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Incorporated in December 1981, the company is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilisers 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).

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The company is also engaged in the trading, distribution and sales of muriate of potash (MOP), ammonia, speciality plant nutrients (SPN) and city compost. Their fertilisers are marketed under some of the key brand names in the market ‘Jai Kisaan – Navratna’ and ‘Navratna’.

The company reported a profit of Rs 362.781 crore in the nine months ended December 2021 with revenue from operations during the same period rising significantly to Rs 5,183.94 crore. Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers to the issue.

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first published: May 18, 2022 10:36 am
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