- The fertilizer company will open its IPO on May 17 and will close on May 19.
- The price band of the IPO is ₹39 - ₹42 per share.
- Shares of the company are already demanding a premium of ₹3 per share in the grey market, which is 10% on the issue price.
The fertilizer company will open its initial public offering (IPO) on May 17 and will close on May 19.
The IPO consists of a fresh issue of shares worth ₹1,501 crore and an offer for sale of 11.85 crore shares by promoters and shareholders of the company.
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).
It caters to farmers across the country through its fertilizers marketed under the brand names Jai Kisaan-Navratna and Navratna.
Shares of the company are demanding a premium of ₹3 per share in the grey market, which is 10% on the issue price. Grey market is the unofficial market where shares are traded before they are either offered or listed.
Here are some of the important dates related to the IPO:
Issue details | |
Price band | ₹39 to ₹42 |
IPO open date | May 17 |
IPO close date | May 19 |
Allotment date | May 24 |
Initiation of refunds | May 25 |
Credit of shares to demat account | May 26 |
IPO listing date | May 27 |
Minimum lot | 350 |
“Given the fact that the company is valued in line (Chambal fertilizer and Deepak fertilizer) with peers and likely to face headwinds in terms of cost pressures due to recent increase in raw material prices, we recommend a NEUTRAL rating on the issue,” said a report by Angel One.
The fertilizer company’s performance has been improving steadily for the last three financial years.
Year | Revenue | Profit |
FY21 | ₹5,183 crore | ₹223 crore |
FY20 | ₹4,227 crore | ₹193 crore |
FY19 | ₹4,397 crore | ₹158 crore |
(Source: Red Herring Prospectus)
However, the company has a long way to go in comparison to its peers, who are more profitable and have more diversified chemical businesses.
Companies | Profit after tax (FY21) |
Chambal Fertilisers and Chemicals | ₹13.5 billion |
Coromandel International | ₹13.1 billion |
Gujarat State Fertilizers & Chemicals | ₹4.2 billion |
Rashtriya Chemicals and Fertilizers | ₹3.7 billion |
National Fertilizers | ₹2.5 billion |
Paradeep Phosphates | ₹2.2 billion |
Deepak Fertilisers and Petrochemicals Corporation | ₹2.1 billion |
Mangalore Chemicals & Fertilizers | ₹0.7 billion |
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