Paradeep Phosphates Ipo: Gmp, subscription status, review. Should you apply?

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The IPO (Initial Public Offering) of Paradeep Phosphates was opened for subscription on May 17, 2022 and will remain open for auction until May 19, 2022. According to information available on the BSE website, Paradeep Phosphates has fixed the price range of its public offer at 39 to 42 per share. After the first day of the call for tenders, the public issue is worth 1501.73 crore was subscribed 0.29 times. Meanwhile, Paradeep Phosphates stock price has been flat on the gray market for the past three days.

Paradeep Phosphates IPO GMP today

Paradeep Phosphates GMP (grey market premium) IPO is today, according to gray market watchers 3, which is unchanged from its gray market premium from yesterday. Observers added that Paradeep Phosphates IPO GMP remained stable at 3 for the last three days. They said the gray market price of the Paradeep Phosphates IPO could change as there is a trend reversal in the secondary market.

Paradeep Phosphates IPO Subscription Status

After day 1 of the auction, the Paradeep Phosphates IPO was subscribed 0.29x while its retail portion was subscribed 0.57x.

Paradeep Phosphates IPO Price Range

India’s largest maker of urea-free fertilizer has set its public offering price range at 39 to 42 per share.

Paradeep Phosphates IPO Lot Size

A bidder will be able to apply for the IPO in batches and one batch of the public offering will consist of 350 shares of the company.

Paradeep Phosphates IPO target

The company plans to use 1,004 crore comes from its new issues to partly finance the acquisition of a fertilizer manufacturing plant in Goa and the repayment of debt.

Paradeep Phosphates IPO Finances

Public issue is reasonably priced and financially, in the first 9 months of FY22 Paradeep Phosphates Limited reported a net profit of 362.78 crore while its turnover over this period amounts to 5973.69 crore. The fertilizer manufacturing company reported a net profit of 158.96 crores on a turnover of 4397.21 crore in FY19 as its net profit in FY2020 jumped to 193.22 crores. In FY21, Paradeep Phosphates Limited recorded a net profit of 223.27 crore on net revenue of 5183.94 crore. Thus, the company has recorded a continuous increase in profits over the past three years.

Paradeep Phosphates IPO Review: Apply or Not?

Giving a subscription label to the public show, the Choice Broking report states: “In a higher price range of Rs. 42, PPL demands an EV/FY21 Sales multiple of 0.7x, which is a discount significant compared to the peer average of 1.1x. Considering the above observations, we are assigning a “SUBSCRIBE” rating for the issue.”

Stating the fundamentals of the company, Abhay Doshi, Founder of UnlistedArena.com, said, “Paradeep Phosphates Limited is the second largest private sector urea-free fertilizer manufacturer in India and the second largest private sector manufacturer in India. terms of diammonium phosphate sales volume for the nine months ended December 31, 2021. On the operational front, revenue and net income are growing steadily.The future outlook for these businesses looks better. thanks to the government’s focus and support on the agricultural sector. The issue looks reasonably priced at a P/E of 7.08x after a new issue based on annualized earnings from 9MFY22.”

Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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