Paradeep Phosphates IPO GMP indicate a discount listing? Check details

New Delhi: The much talked about initial public offer (IPO) of Paradeep Phosphates closed on Thursday, May 19, though hinting at a very interesting turn in terms of its Grey Market Premium (GMP) on Friday, May 20.

The issue got subscribed 1.75 times on the last day of subscription on Thursday.

Paradeep Phosphates is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilisers such as Di-Ammonium Phosphate (DAP) and NPK fertilizers.

Paradeep Phosphates IPO subscription status

According to the NSE data,the IPO received bids for 47,02,00,150 shares against 26,86,76,858 shares on offer, according to NSE data.

Paradeep Phosphates IPO GMP today, listing status

As per market observers, Paradeep Phosphates IPO GMP (grey market premium) remained unchanged for Rs 3 days during its ongoing issue subscription. Paradeep Phosphates IPO shares stood at Rs 3 on  May 17, May 18 and May 19 too. However, as per today’s GMP pricing, which is at Re 1, market observers now hint at a reversal. Based on the GMP of the last three days, it was highly speculated that the listing of Paradeep Phosphates would be around Rs 45. But, with the price reversal today, the indications are not similar.

Paradeep Phosphates IPO details

The Initial Public Offer (IPO) has a fresh issue aggregating up to Rs 1,004 crore and an Offer For Sale (OFS) of up to 11,85,07,493 equity shares. Price range for the offer is Rs 39-42 per share. As part of the OFS, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will offload 60,18,493 equity shares and the government of India will sell up to 11,24,89,000 equity shares. The government will be offloading its entire 19.55 per cent stake in the company. JM Financial, SBI Capital Markets, ICICI Securities and Axis Capital are the managers to the offer.

Currently, ZMPPL holds 80.45 per cent stake and the government of India owns the rest 19.55 per cent stake in the company.

Proceeds of fresh issue will be used to partly finance the acquisition of the fertiliser manufacturing facility in Goa, payment of debt and general corporate purposes.

With PTI Inputs

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