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Paradeep Phosphates lists at a 9% premium as Sensex and Nifty trade in the green

Paradeep Phosphates lists at a 9% premium as Sensex and Nifty trade in the green
Stock Market1 min read
  • Shares of Pradeep Phosphates listed at ₹43.55 while the shares were allotted at ₹42 per share.
  • The IPO received decent response from investors as it was subscribed 1.75 times on the last day of the bidding.
  • The market capitalisation of the company stood at ₹3,730 crore.
Fertilizer company Paradeep Phosphates’ stock rose by over 9.4% after it made its debut on the stock exchanges today.

It’s one of the best performing stocks on listing day as the stock exchanges in general are on an upswing. While BSE Sensex is trading 340 points higher than the last close, NIFTY gained 106 points higher in early trade.

The market capitalisation of the company stands at ₹3,730 crore, according to BSE data.

The listing gains are much higher than what the unofficial grey market has accounted for – a mere 50 paise premium.

The IPO was oversubscribed 1.75 times by investors. Retail investors had oversubscribed the IPO by 1.37 times.

The company is engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as Di-Ammonium Phosphate (DAP), three grades of Nitrogen-Phosphorus-Potassium (NPK), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid (HFSA).

Its financial performance has improved over the years with net profit at ₹223 crore in FY21 as against ₹158 crore in FY19.

Most analysts had recommended investors to subscribe to the IPO on reasonable valuation and on strong prospects for the Indian fertilizer industry that is supported by the government with fair regulations.


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