India’s second largest private sector manufacturer of non-urea fertilizers, Paradeep Phosphates has received a subscription of more than 50% of its IPO. The ₹1,501.73 crore public offer saw strong demand from retail investors. As the portion reserved for the category reached its near about full subscription.
Pardeep IPO has received cumulative bids of 13,63,79,600 equity shares against the offered size of 26,86,76,858 equity shares. Which was confirmed by data displayed by the NSE.
Paradeep Phosphates IPO
The non-institutional investors subscribed by merely 20% against the reserved IPO size.
Seen specifically, there were barely any demands from qualified institutional buyers (QIBs).
QIBs have the inclusion of investors like domestic financial institutions. As well as foreign investors, foreign institutional investors, domestic financial institutions, mutual funds, and others.
The said IPO has 50% of the total size reserved for QIBs. Also, the 35% is allocated to RIIs and 15% is kept for NIIs.
Data seen of the bids on the second day concludes that just 14,700 equity shares were made by the category. Against the reserved size of 8,07,05,162 equity shares.
The upper price band of Rs.42, PPL is available at per equity of 7.1x . Which is attractive on a short to medium scale basis.
PPL is well-positioned to capture favorable Indian market share attention. Since. other fertilizer industry dynamics are supported by conducive government regulations. Driving raw material efficiency through backward integration of facilities and effective sourcing.
The company has established a strong brand name backed by an extensive distribution and sales network. Looking at the PPLs expansion plans, the company has deepened the presence in western regions. As well as southern regions of India assigning it a ‘Subscribe’ rating for the issue. Hence, this would be on a short to medium term basis.