Paradeep Phosphates IPO GMP Today, Lot Size, Share Price, Allotment status, Allotment date, and other related information can be checked from this page. Paradeep Phosphate, a state-owned fertilizer factory, was in debt of 1,000 crores in the early 2000s. Despite the government wiping off three loans, it had also sustained losses of 500 crores.
Paradeep Phosphates IPO
As a result, the government chose to privatize the losing entity to save it. In 2002, the government sold a majority share to a KK Birla Group firm. The company has undergone a full transformation since the shift in management.
It is now India’s second-largest private-sector producer of non-urea fertilizers. In terms of volume sales, Paradeep Phosphates is the second-largest private-sector manufacturer of Di-Ammonium Phosphate (DAP) for the first nine months of FY22. Most importantly, it has consistently increased revenue and profit.
Paradeep Phosphates IPO GMP Today
The IPO of Paradeep Phosphates is a hybrid of an offer for sale (OFS) and a new issuance. The government is selling its 19.5 percent ownership in the corporation as part of OFS. The profits from Paradeep Phosphate Ltd’s new initial public offering will be utilized to partially fund the acquisition of its Goa plant as well as debt payments.
The Pradeep Phosphates IPO aims to raise Rs. 1,200 crores at the upper end of the price band. The proceeds from the IPO will be used to repay debt and for general corporate purposes.
Pradeep Phosphates IPO Lot Size
Pradeep Phosphates is all set to hit the primary market with an IPO GMP today. The Pradeep Phosphates IPO comprises a fresh issue of equity shares aggregating up to Rs 300 crore and an offer for sale of up to 1.17 crore equity shares by existing shareholders. Here’s a quick look at the key details of the IPO:
Issue size: Rs 300 crore (fresh issue of equity shares) + Rs 1,170 crore (offer for sale)
Price band: Rs 86-87 per share
Lot size: 55 shares
Minimum investment: Rs 4,755
Lead manager: SBI Capital Markets Ltd
Shareholder selling stake: promoters Pradeep Rathi and Gajendra Rathi (1.17 crore equity shares)
Use of proceeds: The company plans to utilize the fresh issue proceeds towards funding its Capex requirements and prepayment/partial prepayment of certain loans.
IPO grading: CRISIL has assigned a grade 3 to the IPO, indicating ‘average fundamentals’. When compared to the other listed securities, the IPO falls in the lower end of the risk spectrum.
Pradeep Phosphates IPO Review
The price range will determine the outcome of the Paradeep Phosphates IPO.
- Their business depends on the success of the agriculture sector, where their fertilizers get used.
- Their business is cyclical and influenced by weather conditions.
- The impact of the coronavirus outbreak on their business is uncertain and impossible to predict.
- Their company, its promoters, and its directors are all involved in legal battles. Any bad decision made in any of these processes could have a detrimental influence on their business.
- They may not be able to market their products if they can not obtain or maintain regulatory approvals, which could harm their business.
- Their inability to expand or manage their distribution network effectively could harm their business.
Paradeep Phosphates Background
Pradeep Phosphates is one of the leading manufacturers and exporters of phosphate fertilizers in India. The company has an integrated manufacturing facility that produces a wide range of products including single super phosphate (SSP) and complex fertilizers.
Paradeep Phosphates is owned by Adventz Group and OCP. The Adventz Group was founded by the late Dr. K.K. Birla and is currently chaired by Mr. Saroj Kumar Poddar.
The Adventz Group is active in various businesses, including agribusiness, engineering and infrastructure, and new lifestyles.
OCP is a world-renowned phosphate rock producer that was formed in 1920 and will have revenues of approximately US$6.3 billion in 2020.
It primarily operates in Morocco and Western Sahara, which, according to CRISIL Research, account for nearly 70% of the world’s phosphate rock resources and are owned by the Moroccan government in 95% of cases.
We walked you through all the information you need regarding the Pradeep Phosphates IPO. You are now aware of the Pradeep Phosphate IPO GMP, Lot Size, Share Price, and Allotment. It has some risks involved that we discussed in the article above, so, choose wisely.