Paradeep Phosphates made a positive debut on the bourses on Friday.. The stock listed at 3.69 per cent premium on the BSE at ₹43.55, up ₹1.55 from the issue price of ₹42.
Post listing, it climbed to a high of ₹47.25 during the day on the BSE. It closed at ₹43.95, up ₹1.95 or 4.64 per cent from its issue price. It recorded an intraday low of ₹42.95.
It listed at ₹44.00 on the NSE, up ₹2.00 or 4.76 per cent from the IPO price. It closed at ₹44.10, up by nearly 5 per cent.
Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The company’s tepid listing can be attributed to the current market sentiments and a lukewarm response from the investors. The company is one of the largest manufacturers of non-urea-based fertilisers and has competitive advantages in terms of backward integration and location.
“However, the company is operating in a highly regulated industry, with a very high dependency on the agriculture sector. The business is subject to climatic conditions and is cyclical in nature. Nevertheless, the issue was reasonably priced,” Meena said.
The company had fixed the IPO price at ₹42, the upper end of the ₹39-42 price band. The ₹1,501-crore initial public offering of Paradeep Phosphates was subscribed 1.75 times. While the retail investors’ portion was subscribed 1.37 per cent, the HNIs quota and QIBs portions got 0.82 times and 3.01 times, respectively.
Ahead of the IPO, the fertiliser company had raised a little over ₹450 crore from anchor investors.