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