Paradeep Phosphates IPO: Company revenue, profit, growth outlook in 10 points

May 17, 2022

By: Bhakti Makwana

Paradeep Phosphates launches ₹1,501 crore IPO

The fertilizer company’s IPO consists of a fresh issue of shares worth ₹1,501 crore and an offer for sale of 11.85 crore shares by promoters.

Credit: BCCL

IPO dates

The IPO opened on May 17 and will close on May 19. The price band is set at ₹39 - 42 per share.

Credit: BCCL

What does the company do?

The company is primarily 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).

Credit: BCCL

IPO money to be used to repay debt and finance Goa unit

The Company intends to utilize IPO proceeds from the fresh issue to part-finance the acquisition of the Goa facility, repayment of debt and general corporate purposes.

Credit: Investopedia

Financial performance has improved gradually over the years

The fertilizer company’s performance has been improving steadily for the last three financial years as profit grew from ₹158 crore in FY19 to ₹223 crore in FY21.

Credit: Flourish-chart

Peers companies more profitable

However, the company has a long way to go in comparison to its peers, who are more profitable and have more diversified chemical businesses.

Credit: Flourish-chart

Analysts suggest investors to subscribe the IPO

Most analysts have 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.

Credit: BCCL

Grey market indicates a weak listing

Shares of the company are demanding a premium of ₹3 per share, which is 10 percent on the issue price.

Credit: BCCL

On day 1, only 28 percent of the issue was subscribed

On the first day of subscription on May 17 till 3 p.m., 28 percent of the IPO was subscribed. The IPO will close on May 19.

Credit: BCCL

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