Paradeep Phosphates IPO: GMP, subscription status, review. Should you apply?
Premium- Paradeep Phosphates IPO GMP has been steady at ₹3 for last three days, say market observers
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Paradeep Phosphates IPO (Initial Public Offering) opened for subscription on 17th May 2022 and it will remain open for bidding till 19th May 2022. As per the information available on BSE website, Paradeep Phosphates has fixed the price band of its public offer at ₹39 to ₹42 per equity share. Meanwhile, Paradeep Phosphates share price has remained steady in grey market for last three days.
Paradeep Phosphates IPO GMP today
According to grey market observers, Paradeep Phosphates IPO GMP (grey market premium) today is ₹3, which is unchanged from its yesterday's grey market premium. Observers went on to add that Paradeep Phosphates IPO GMP has remained steady at ₹3 for the last three days. They said that Paradeep Phosphates IPO grey market price may change as there is trend reversal in the secondary market.
Paradeep Phosphates IPO subscription status
On day 2 of bidding by 2:04 PM, Paradeep Phosphates IPO has been subscribed 0.43 times whereas its retail portion has been subscribed 0.81 times.
Paradeep Phosphates IPO price band
India's largest non-urea fertilize maker has fixed price band of its public offer at ₹39 to ₹42 per equity share.
Paradeep Phosphates IPO lot size
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A bidder will be able to apply for the IPO in lots and one lot of the public issue will comprise 350 company shares.
Paradeep Phosphates IPO objective
Company plans to utilize ₹1,004 crore proceeds from its fresh issues to partly finance acquisition of fertilizer manufacturing facility in Goa and repayment of debt.
Paradeep Phosphates IPO financials
The public issue is reasonably priced and on financial front, in first 9 months of FY22, Paradeep Phosphates Limited has reported a net profit of ₹362.78 crore whereas its turnover in this period stands at ₹5973.69 crore. The fertilizer maker company has reported net profit of ₹158.96 crore on a turnover of ₹4397.21 crore in FY19 whereas its net profit in FY2020 surged to ₹193.22 crore. In FY21, Paradeep Phosphates Limited reported a net profit of ₹223.27 crore against the net turnover of ₹5183.94 crore. So, the company has been continuously logging rise in profit for last three fiscals.
Paradeep Phosphates IPO review: Apply or not?
Giving subscribe tag to the public issue, Choice Broking report says, "At higher price band of Rs. 42, PPL is demanding an FY21 EV/Sales multiple of 0.7x, which is at significant discount to the peer average of 1.1x. Considering the above observations, we assign a “SUBSCRIBE" rating for the issue."
Pointing towards company's fundamentals, Abhay Doshi, Founder at UnlistedArena.com said, "Paradeep Phosphates Limited is the second largest private sector manufacturer of non-urea fertilizers in India and the second largest private sector manufacturer in terms of Di-Ammonium Phosphate volume sales for the nine months ended December 31, 2021. On the operational front, top and bottom line is growing consistently. The future prospects of such companies looks better due to focus and support of the government on agricultural sector. The issue looks reasonably priced at a P/E of 7.08x post fresh issue based on annualised 9MFY22 earnings."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
