Paradip Phosphates IPO (Initial Public Offering) opened for subscription on 17th May 2022 and will be open for bidding till 19th May 2022. Hence, the membership of Paradip Phosphates IPO is going to expire today. In the first two days of bidding, the public issue price 1501.73 crore has been subscribed 0.51 times while its retail segment is subscribed 0.95 times. Meanwhile, Paradip Phosphate shares remained stable for the fourth consecutive day in the gray market. As per market observers, the share price of Paradip Phosphate is being quoted at a premium of 3 in the gray market today.
Paradip Phosphate Today IPO GMP
Market observers said Paradip Phosphate IPO GMP (grey market premium) today is 3, unchanged from last evening’s gray market premium 3 per equity share. He said that the gray market sentiment for Paradip Phosphates IPO has remained stable for the fourth day in a row and today some increase in Paradip Phosphates IPO GMP is expected as the secondary market is indicating trend reversal from last two consecutive sessions.
What does this GMP mean?
Market observers say Paradip Phosphate’s IPO is GMP today 3 means gray market is expecting Paradip Phosphate IPO listing to be around 45 ( 42 + 3), which is about 7 percent higher than Paradip Phosphate’s IPO price band from 39 42 per equity share.
Hence, the gray market is indicating that the listing of Paradip Phosphate IPO may be moderate as the public issue in the gray market has remained stable despite the volatility in the secondary market.
However, stock market experts asked investors to look at the fundamentals rather than the gray market premium of the company. He said that the gray market represents an informal information, which is non-regulated. It is the financial statement of the company which gives a clear picture of the fundamentals of the company.
Paradip Phosphate IPO: Should You Subscribe?
Giving a subscribe tag to the IPO of Paradip Phosphates, Aastha Jain, Senior Research Analyst, Hem Securities said, “The company is bringing the issue at the price band. 39-42 per share P/E multiplier 11x based on FY2011 EPS. Being the second largest private sector manufacturer of Phosphatic Fertilizers in India, the company is well positioned to capture the favorable dynamics of the Indian fertilizer industry backed by favorable government regulations. The company with an established brand name backed by an extensive sales and distribution network, has strong parentage, experienced management team and key shareholders are looking for sound investment avenues for long term investment. That’s why we recommend to “subscribe” to this issue for the long term.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.