Paradeep Phosphates Ltd. IPO is coming up_Know all the details here:
Paradeep Phosphates Ltd. (PPL), which is the second-largest private-sector manufacturer of non-urea fertilizers in India in terms of Di-Ammonium Phosphate ("DAP") volume sales for the nine months ended December 31, 2021, is coming up with an IPO.
Here are few details one should be aware of.
About the company:
The issue comprises fresh issuance of equity shares worth Rs 1,004 crore and an offer for sale (OFS) component of 11.85 crore equity shares.
As part of the OFS, Zuari Maroc Phosphates will offload 60,18,493 equity shares and the Government of India will sell up to 11,24,89,000 equity shares. The government will be offloading its entire 19.55 per cent stake in the company.
About an IPO:
◇ The lot size is 350 shares and one can buy apply for maximum 13 lots.
◇ The share price is ₹39 to ₹42 per share.
◇ The total minimum investment one has to do is ₹14,700.
◇ IPO closes on 19th May, 2022 and opens on 17th May, 2022.
◇ Allotment will happen on 24th May, 2022.
◇ IPO will be listed on NSE and BSE.
Financials:
◇ It is giving Earnings per share as 3.88.
◇ PE ratio 0.25x and industry PE as 15.73x.
◇ Have a look at some other financial details.
Pros:
◇ Fair IPO pricing (₹39 to ₹42 is quite good).
◇ Strong Parentage (Strong fundamental growth expected)(primary promoters of the company are Zuari Maroc Phosphates Private Limited (ZMPPL).
Cons:
◇ Weak Financial Statements.
◇ Greater Dependency on one manufacturing unit.
◇ Unstable markets and competition.
Overall company is expected to list at some premium because of fair valuation and this will be confirmed if IPO gets fairly subscribed.
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