Paradeep Phosphates IPO GMP Today, Lot Size, Share Price, Allotment
Paradip Phosphate IPO GMP Today, lot size, share price, allotment status, allotment date and other related information can be checked from this page. State-owned fertilizer factory Paradip Phosphate was in debt of Rs 1,000 crore in the early 2000s. Despite the government waiving off three loans, it had also suffered a loss 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 stake to a firm of the KK Birla Group. The company has undergone a complete transformation since the change in management.
It is now India’s second-largest private sector producer of non-urea fertilizers. In terms of sales volume, Paradip Phosphate is the second-largest private sector producer 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 Paradip Phosphates is a hybrid of an offer for sale (OFS) and a fresh issue. The government is selling its 19.5 per cent ownership in the corporation as part of the OFS. Profits from Paradip Phosphate Ltd’s new initial public offering will be used partly for the acquisition of its Goa plant as well as for debt payments.
Pradeep Phosphates IPO target is to raise Rs. 1,200 crore at the upper end of the price band. The proceeds from the IPO will be used to pay off 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:
ssue 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 are 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.
- His company, its promoters and its directors are all involved in a legal battle. Any wrong decision made in any of these processes can have a detrimental effect on their business.
- They may not be able to market their products if they cannot obtain or maintain regulatory approval, which could harm their business.
- Their inability to effectively expand or manage their distribution network could hurt their business.
Paradip Phosphate Background
Pradeep Phosphate 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.
Paradip Phosphate is owned by Advantage Group and OCP. The Adventz Group was founded by the late Dr. K.K. Birla and is currently headed by Shri Saroj Kumar Poddar.
Adventz Group is active in a variety of businesses, including agribusiness, engineering and infrastructure, and new lifestyles.
OCP is a world-renowned phosphate rock producer that was formed in 1920 and will generate approximately US$6.3 billion in revenue in 2020.
It operates primarily in Morocco and Western Sahara, which, according to Crisil Research, account for about 70% of the world’s phosphate rock resources and are owned by the Moroccan government in 95% of cases. References
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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.