Shares of Paradeep Phosphates Ltd. gained on listing after its initial public offering was subscribed 1.75 times.
The stock of the non-urea fertiliser maker, part of the Adventz Group (KK Birla Group), listed at Rs 43.5 on the BSE, a premium of 3.7% to its IPO price of Rs 42 apiece. On the NSE, the stock debuted at Rs 44, a 4.7% premium.
It then rose to as much as Rs 47.25 apiece, up 12.5%, as of 10:05 a.m. The stock closed 4.6% higher on the BSE.
The Rs 1,501.7-crore IPO had got off to a slow start, subscribing only 51% at the end of the second day.
The IPO comprised a fresh issue worth Rs 1,004 crore, according to its red herring prospectus. It also consisted of an offer for sale by the Government of India, which offloaded 11.85 crore shares d at Rs 497.70 crore at the upper end of the price band of Rs 39–42 apiece.
Paradeep Phosphates was acquired by a joint venture of Zuari Agro Chemicals Ltd. and OCL as part of a divestment process by the government in 2002.
The company will use Rs 530 crore from the fresh issue to complete acquisition of a Goa facility. It will also repay borrowings worth Rs 300 crore, and the rest will be for general corporate purposes.