The issue, which opened for subscription on Tuesday, May 17, can be subscribed till Thursday, May 19. The company is selling its shares in a lot size of 350 equity shares in a price range of Rs 39-42 apiece.
According to the data available on BSE, the investors made bids for 9,87,84,700 equity shares or 37 per cent so far compared with 26,86,76,858 equity shares on offer.
The quota for retail bidders was subscribed 72 per cent, whereas the allocation for non-institutional bidders was subscribed only nine per cent. The qualified institutional buyers did not participate in the bidding process so far.
The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get 15 per cent allocation. The remaining 35 per cent shares will be given to the retail bidders.
Incorporated in 1981, Paradeep Phosphates is the second-largest private sector manufacturer of non-urea fertilizers and Di-Ammonium Phosphate(DAP) in terms of volume sales for the nine months ended December 31, 2021.
The non-urea fertilizers manufacturer is engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers, under the brand names Jai Kisaan-Navratna and Navratna.
As of March 31, 2022, it distributed products across 14 states in India. The company’s network includes 4,761 dealers and over 67,150 retailers serving over five million farmers in India.
The majority of the brokerage firms are positive on the issue in the long run given its sound financial track record, established brand name, sales and distribution reach, massive storage, reasonable valuations and capacity expansion.
Brokerage firm Nirmal Bang said, “With the addition of the Goa plant, it would be able to strengthen its reach as well as would be able to have better backward integration, thereby making it a strong player in the industry.”
The additional capacity which is getting added on would benefit the company on an immediate basis, said the brokerage firm with a ‘subscribe for long term’ rating on the issue.
The company, being the second-largest private sector manufacturer of Phosphatic fertilizers in India, is well-positioned to capture favourable Indian fertilizer industry dynamics supported by conducive government regulations, said Hem Securities.
“Company with an established brand name backed by an extensive sales and distribution network has strong parentage, experienced management team and prominent shareholders,” said the brokerage with a ‘subscribe’ rating on the issue.
It clocked a profit of Rs 362.781 crore in the nine-month period 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, whereas Link Intime India is the registrar to the issue.