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Paradeep Phosphates IPO Final Day: Issue subscribed 1.75 times, retail portion booked 1.37 times, QIB 3.01 times

The company aims to mop up Rs 1,501 crore in total from a fresh issue of shares worth Rs 1,004 crore and an offer for sale of Rs 497.73 crore

May 19, 2022 / 05:20 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 1.75 times  on day three or the final day with investors bidding for 47.02 crore shares against the IPO size of 26.86 crore units.

The company aims to mop up Rs 1,501 crore in total from a fresh issue of shares worth Rs 1,004 crore and an offer for sale of 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 share and the issue closes on May 19.

Retail investors have bid for 1.37 times the 13.15 crore shares set aside for them while non-institutional investors’ portion was subscribed 82 percent. Qualified institutional buyers have subscribed 3.01 times against their quota of 8.07 crore as the bidding ended on May 19.

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 1981, the company is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilisers such as DAP, and three grades of nitrogen-phosphorus-potassium, zypmite, phospho-gypsum and hydroflorosilicic acid.

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The company is also engaged in the trading, distribution and sales of muriate of potash, ammonia, speciality plant nutrients and city compost.

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 19, 2022 10:37 am
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