Paradeep Phosphates Surges Over 12% On Market Debut
Shares of Paradeep Phosphates Ltd. gained on listing after its IPO was subscribed 1.75 times.
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 valued 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.