Paradip Phosphates IPO (Initial Public Offering) opened for subscription on 17th May 2022 and will be open for bidding till 19th May 2022. As per the information available on the BSE website, Paradip Phosphates has fixed the price band of its Public Offer. from 39 42 per equity share. Meanwhile, the share price of Paradip Phosphate has remained stable for the last three days in the gray market.
Paradip Phosphate Today IPO GMP
According to gray market experts, Paradip Phosphate IPO GMP (grey market premium) today is 3, unchanged from yesterday’s gray market premium. Observers further said that Paradip Phosphate IPO GMP has remained stable Since last three days 3. He said that Paradip Phosphate IPO Gray market price may change as there is trend reversal in secondary market.
Paradip Phosphate IPO Membership Status
As of 2:04 pm on the second day of bidding, Paradip Phosphate’s IPO has been subscribed 0.43 times while its retail portion has been subscribed 0.81 times.
Paradip Phosphate IPO Price Band
India’s largest non-urea fertilizer manufacturer has announced a fixed price band for its public offer. from 39 42 per equity share.
Paradip Phosphate IPO Lot Size
A bidder will be able to apply for IPO in lots and one lot of public issue will consist of 350 company shares.
Paradip Phosphate IPO Purpose
The company plans to use From its latest issue, Rs 1,004 crore is partly financed for acquisition of fertilizer manufacturing facility in Goa and repayment of debt.
Paradip Phosphate IPO Financial
The public issue has fair value and on the financial front, Paradip Phosphates Limited has reported a net profit in the first 9 months of FY22 362.78 crore while its turnover during this period 5973.69 crores. Fertilizer manufacturer company has registered a net profit of 158.96 crore on a turnover of 4397.21 crore in FY19 while its net profit increased in FY2020 193.22 crores. In FY21, Paradip Phosphates Ltd. reported a net profit of 223.27 crore against a net turnover of Rs. 5183.94 crores. Hence, the company has been reporting consistent profit growth for the last three financial years.
Paradip Phosphate IPO Review: Apply or Not?
Giving the subscribe tag to the public issue, Choice Broking Report says, “At the higher price band of Rs 42, PPL is seeking FY2011 EV/sales multiplier 0.7x, at a significant discount to the peer average of 10.1x Considering the above comments, we provide a “Subscribe” rating for this issue.
Pointing out to the company’s core principles, Abhay Doshi, Founder, UnlistedArena.com, said, “Paradip Phosphates Limited is the second largest private sector manufacturer of non-urea fertilizers in India and the second largest private sector manufacturer, Di-Ammonium Phosphate Volume is in terms of sales. Nine months ended 31st December, 2021. On the operational front, the top and bottom line have been growing steadily. The future prospects of such companies are due to the government’s focus and support on the agriculture sector. Prospects look better. The issue appears to be at fair value at P/E of 7.08x after the latest issue based on annualized 9MFY22 earnings.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.