Paradeep Phosphates was the new listing today; as against the issue price of Rs.42, it got listed slightly higher at Rs.43.55 but soon went up to Rs.47.25. It is currently trading at Rs.44 levels.
The IPO was subscribed overall 1.75 times, of which QIB category was at 3.01 times, retail at 1.37 times and 0.82 times in HNIs.
Our IPO Analysis conclusion, “Rising demand and Government’s increased subsidy support keep positive outlook for fertilizer sector, especially complex fertilizers (vital for yield maximisation and soil health restoration). Company being the 2nd largest player, with integrated manufacturing capabilities, can benefit from the sector tailwinds. While present secondary market conditions may limit listing gains, company’s growth prospects make it an attractive buy for portfolio holding. Thus, we recommend applying in the IPO, more so with a medium-term perspective."