Paradeep Phosphates Limited IPO (Paradeep Phosphates IPO) Detail

May 17, 2022 - May 19, 2022

Incorporated in 1981, Paradeep Phosphates Limited is a manufacturer of non-urea fertilizers in India. The company is engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (namely NPK-10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid.

Paradeep Phosphates Limited is the second largest private sector manufacturer of non-urea fertilizers and Di-Ammonium Phosphate(DAP) in terms of volume sales for the nine months ended December 31, 2021. The company's fertilisers are marketed under the brand names Jai Kisaan-Navratna and Navratna.

The manufacturing facility of Paradeep Phosphates Limited is located in Paradeep, Odisha, and includes a DAP and NPK production facility, a Sulphuric acid production plant and a Phosphoric acid production plant. The facility can store up to 120,000 MT, 65,000 MT, 55,000 MT and 35,000 MT of Phosphate Rock, Phosphoric acid, Sulphur and MOP, respectively.

The company established an extensive sales and distribution network, with a strong presence in the eastern part of India. As of March 31, 2022, Paradeep Phosphates distributed products across 14 states in India through the network of 11 regional marketing offices and 468 stock points.

As of March 31, 2022, the company's network includes 4,761 dealers and over 67,150 retailers serving over five million farmers in India.

Competitive Strengths

  • Well-positioned to capture favourable Indian fertilizer industry dynamics supported by conducive government regulations.
  • The second largest manufacturer of Phosphatic fertilizers in India.
  • Driving raw material efficiency through backward integration of facilities and effective sourcing.
  • Secure and certified manufacturing facility and infrastructure and unutilised land available for expansion.
  • The strategic location of our manufacturing facility and sizeable material storage, handling and port facilities.
  • Established brand name backed by an extensive sales and distribution network.
  • Strong parentage, experienced management team and prominent shareholders.

Paradeep Phosphates IPO Details

IPO Date May 17, 2022 to May 19, 2022
Listing Date May 27, 2022
Face Value ₹10 per share
Price ₹39 to ₹42 per share
Lot Size 350 Shares
Total Issue Size357,555,112 shares
(aggregating up to ₹1,501.73 Cr)
Fresh Issue239,047,619 shares
(aggregating up to ₹1,004.00 Cr)
Offer for Sale118,507,493 shares of ₹10
(aggregating up to ₹497.73 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE

Paradeep Phosphates IPO Reservation

QIB Shares Offered80,705,162 (30.04%)
NII (HNI) Shares Offered56,391,509 (20.99%)
Retail Shares Offered131,580,187 (48.97%)
Total Shares Offered268,676,858

Paradeep Phosphates IPO Tentative Timetable

Paradeep Phosphates IPO opens on May 17, 2022, and closes on May 19, 2022.

Event Tentative Date
Opening Date May 17, 2022
Closing Date May 19, 2022
Basis of Allotment May 24, 2022
Initiation of Refunds May 25, 2022
Credit of Shares to Demat May 26, 2022
Listing Date May 27, 2022
UPI Mandate Confirmation Cut-Off Time 5.00 PM on the issue closing day

Paradeep Phosphates IPO Lot Size

The Paradeep Phosphates IPO lot size is 350 shares.

Application Lots Shares Amount
Retail (Min) 1 350 ₹14,700
Retail (Max) 13 4550 ₹191,100
Lot Size Calculator

Paradeep Phosphates IPO Promoter Holding

Zuari Maroc Phosphates Private Limited, Zuari Agro Chemicals Limited, OCP S.A and President of India, acting through the Ministry of Chemicals and Fertilizers, Government of India are the company promoters.

Pre Issue Share Holding 100%
Post Issue Share Holding

Paradeep Phosphates IPO Subscription Status (Bidding Detail)

The Paradeep Phosphates IPO is subscribed 1.75 times on May 19, 2022 5:00:00 PM. The public issue subscribed 1.37 times in the retail category, 3.01 times in the QIB category, and 0.82 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)

Company Financials

Summary of financial Information (Restated Consolidated)
Particulars For the year/period ended (β‚Ή in Millions)
31-Dec-21 31-Mar-21 31-Mar-20 31-Mar-19
Total Assets 71,862.67 44,231.67 50,103.25 56,276.58
Total Revenue 59,736.88 51,839.41 42,277.76 43,972.13
Profit After Tax 3,627.84 2,232.68 1,932.20 1,589.63

Paradeep Phosphates IPO Review (Apply)

[Dilip Davda]  PPL is the second-largest non-urea fertiliser manufacturer in the country. Considering the primary thrust on the agriculture segment by the Government, this company is poised for bright prospects in the future. The issue is too reasonably priced and is worth considering for medium to long term rewards. Read detail review...

Objects of the Issue

The net proceeds of the Fresh Issue are proposed to be utilised in the following manner:

  • Part-financing the acquisition of the Goa Facility.
  • Repayment/prepayment of certain of our borrowings.
  • General corporate purposes.

Paradeep Phosphates IPO Prospectus

Paradeep Phosphates IPO Rating

Rating:Rated 4.1 stars
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Paradeep Phosphates IPO Listing Details

Listing Date May 27, 2022
BSE Script Code 543530
ISIN INE088F01024
Final Issue Price ₹42 per share

Pre-Open Session - NSE

Listing Day Trading Information

Price Details
Final Issue Price
Last Trade

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Company Contact Information

Paradeep Phosphates Limited
5 th Floor, Orissa State Handloom Weavers'
Co-Operative Building, Pandit J.N Marg,
Bhubaneswar 751 001,
Phone: +91 080 45855561
Email: cs.ppl@adventz.com
Website: http://www.paradeepphosphates.com/

Paradeep Phosphates IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: ppl.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Paradeep Phosphates IPO Analysis

Paradeep Phosphates IPO Recommendation Summary

Review By Subscribe Neutral Avoid
Brokers 1 2 0
Members 27 2 6

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Paradeep Phosphates IPO FAQs

Paradeep Phosphates IPO is a main-board IPO of 357,555,112 equity shares of the face value of ₹10 aggregating up to ₹1,501.73 Crores. The issue is priced at ₹39 to ₹42 per share. The minimum order quantity is 350 Shares.

The IPO opens on May 17, 2022, and closes on May 19, 2022.

Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

Zerodha customers can apply online in Paradeep Phosphates IPO using UPI as a payment gateway. Zerodha customers can apply in Paradeep Phosphates IPO by login into Zerodha Console (back office) and submitting an IPO application form.

Steps to apply in Paradeep Phosphates IPO through Zerodha

  1. Visit the Zerodha website and login to Console.
  2. Go to Portfolio and click the IPOs link.
  3. Go to the 'Paradeep Phosphates IPO' row and click the 'Bid' button.
  4. Enter your UPI ID, Quantity, and Price.
  5. ‘Submit’ IPO application form.
  6. Visit the UPI App (net banking or BHIM) to approve the mandate.

Visit Zerodha IPO Application Process Review for more detail.

The Paradeep Phosphates IPO opens on May 17, 2022 and closes on May 19, 2022.

Paradeep Phosphates IPO lot size is 350 Shares and the minimum order quantity is .

You can apply in Paradeep Phosphates IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Paradeep Phosphates IPO will be done on May 24, 2022, and the allotted shares will be credited to your demat account by May 26, 2022. Check the Paradeep Phosphates IPO allotment status.

The Paradeep Phosphates IPO listing date is on May 27, 2022.
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Paradeep Phosphates IPO Message Board

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337. Vultureee |   Link |Jun 13, 2022 10:08:49 PM
Top Contributor Top Contributor (300+ Posts, 200+ Likes)
PARADEEP PHOSPHATES : CO. May on 02, 2022 had intimated about the shut down the Ammonia and Urea Plants for annual maintenance w.e.f. May 01, 2022.

Co. informs that, the operations of Ammonia and Urea Plants of the Company at Goa, have resumed operations after the annual maintenance activities.
336. Kami |   Link |Jun 13, 2022 8:27:56 AM (200+ Posts)
335. Jetha Lal |   Link |Jun 3, 2022 11:59:09 PM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
India and Egypt are working to swap wheat for fertilizer and other goods to ease potential food shortages.
334. IPOHNILEARN |   Link |Jun 3, 2022 8:54:03 PM
SW Monsoons advances to NE India , Forecatsed rainfall is 103% of LPA. good prospectus on the card. Add on Dips.
333. Jetha Lal |   Link |May 31, 2022 11:21:25 AM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
Non promoter Shareholding pattern of PP on day of listing.
Interestingly LIC can be seen which usually doesn't invest in IPO.
Top Shareholders:
SBI Multicap : 5.25%
LIC : 4.28%
NIPPON Smallcap fund : 3.39%
ICICI pru Multiasset fund : 2.35%
HDFC balance advantage : 1.4%
Mirae asset equity saving: 1.4%
Goldman Sachs : 1.71%
Bnp paribas Arbitrage : 1.58%
Retail investors : 14.14%.

332. Kanwarjit |   Link |May 30, 2022 7:02:51 PM (200+ Posts)
@ JETHA LAL JI thanks for showing your kindness by replying in detail. I will keep a watch on the performance GOD BLESS YOU
331. Kanwarjit |   Link |May 30, 2022 2:15:13 PM (200+ Posts)
@Jetha lal ji kindly sir guide about paradeep is it ok to hold for some time for good returns or sell now
331.1. Jetha Lal |   Link |May 30, 2022 5:08:48 PM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
@Kanwarjit ji
I am not an expert and I tried to dive down into this group and company. I will tell you my limited view about this company and sector and accordingly you can take decision related to PP as per your choice.

Fertilizer Stocks like Coromandel, Chambal, Deepak fertilizers made good wealth in long term for investors and even Agrochemical companies too. There is growing demand of food in india and world (geopolitical tension made food scarcity too and india has abundant and potential to grow huge). Monsoon is also in favour from last few years and Government have good budgetary support & till will continue till next election at least.

Now coming to this company i.e PP, this company has best in sector margin, raw material price stability (because it sources its RM from morrocan JV), valuation is also attractive (before till new acquisition of Goa unit).
Now I will tell you what worries me about this company and I didn't apply in IPO because of only these reasons:

PP made acquisition of Goa unit (loss making with negative cash flow from last three years from group company i.e ZACL(Zuari Agrochemical Company Ltd). This PP is also JV between ZACL and a morrocan company. Here promoter sold a loss making company to PP and encashed their money. It would be opportunity and challenge for PP to turnaround (make profitable) Goa unit and I would like to wait and watch how Goa unit is managed.
I have some concern related efficiency of promoter group too because Mangalore Chemicals and Fertilizers Ltd (a listed company) is also a subsidiary company of Zuari group and this company hasn't performed well either on financial record or share price record.
In the long term PP might able to make synergy between Paradeep unit and Goa unit but in near term this Goa unit will definitely impact financial of PP because turnaround doesn't happen overnight and we are not very sure whether they will able to do it or not because if the promoter is same then why they can't able to do till now and they made decision to sell it to another group company.
Market is always forward looking and the current valuation (P/E 6) doesn't include loss of Goa unit and Goa unit financial will start combining with PP from next year and I don't know how it will impact.

This was my research which put me away from applying in PP's IPO. There are a lot of If & but in this company and I chose to stay away.
Whether you want to hold or sell then in my opinion if you applied for short term then trade with stoploss (your loss bearing capacity) and if you applied for long term then keep track of its quarter result and further updates company gives.

331.2. Jetha Lal |   Link |May 30, 2022 5:09:55 PM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
Goa unit acquisition detail.

330. Nilaykumar |   Link |May 30, 2022 12:25:48 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Goldman sachs bought at 46+.
Should thay sold today or holding in loss
330.2. Jetha Lal |   Link |May 30, 2022 12:49:49 PM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
@Nilaykumar ji
Goldman Sachs bought 1.14 cr share @ Rs 42 in anchor allotment too and added again 41.32 lakhs share @ Rs45.95.(holds around 2% of company now)
These big FII take position for longer time horizon.
We should not follow any Investor or institution blindly. This is general statement and not in relation with Goldman Sachs.
330.3. Nilaykumar |   Link |May 30, 2022 3:00:35 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Okay got it. thanks both of you.
Sold 5 lot on listing and holding 3 lot
329. IPOHNILEARN |   Link |May 30, 2022 2:01:22 PM
Please HOLD Rainbow, It has resumed Normalcy now. More IT folks started returning from their Home town/s, we can see spike in OP Volume and pent up demand in Q1.
Now it is trading 500+ , soon it will reach it's IPO price, and TP is 600 by Q1 End
328. IPOHNILEARN |   Link |May 30, 2022 1:53:55 PM
Rainbow Results snippet and concall Outcome :
: AOLSS is 2.83 compared to 3 and it is 4.79 for KIMS ( In-line)
: ARPOB ~45,711 ( in Line)
: IP Volume ( In line)
: Op Volume (Miss ) (But Management clarified , it picked up now as schools started opening and IT folks returning from their Home town)
: Occupancy : 44.59% (Miss) - Management clarified that Omicron disrupted for 6 weeks in Jan & Feb. it picked up now

EBITA down : 400 bps ( compared to (9MFY22) - Miss
328.1. IPOHNILEARN |   Link |May 30, 2022 1:56:31 PM
Management clarified that due to Omicron and one time lease payment of 20crs reduced bottom line compared to QoQ
please HOLD, do not sell this GEM
it is trading 500+ now
327. ShiningShiva |   Link |May 30, 2022 12:24:39 PM
Looks like most investors of PP are exiting in panic. The result is not bad at all. Although I did not apply in this. I have bought few at 41.1, would keep buying in next few sessions, if available further down. People with short horizon should exit (*So people like me can buyπŸ˜†).
327.1. Monster Zero |   Link |May 30, 2022 1:06:00 PM
IPO Guru IPO Guru (2700+ Posts, 2300+ Likes)
Intraday is open.... Shorting is going on...Plus the stoploss was placed on 44 , 43 and 42...ot is highly unlikely it'll happen again. But seeing the delivery it seems.. operator is accumulating shares ....50% + delivery today also......
326. ipobull |   Link |May 30, 2022 10:22:12 AM
IPO Mentor IPO Mentor (900+ Posts, 1000+ Likes)
Exit at a stop loss of 42. Once it goes below it, it will never rise again in the short term until its results are mind-blowing in future. It works like a PSU. So, do not expect fireworks.
326.1. ipobull |   Link |May 30, 2022 10:35:50 AM
IPO Mentor IPO Mentor (900+ Posts, 1000+ Likes)
Now hell will wreck PPL. Luckily today I had exited fully with SL @ 45. Sometimes, I feel we should not do too much research on such stocks and also not waste too much time. And always beware of the Operators play in the initial stages of listing.
326.2. Earthking |   Link |May 30, 2022 10:36:05 AM
IPO Mentor IPO Mentor (600+ Posts, 200+ Likes)
Huge selling... Luckily kept stop loss at 44.7 ... All got executed.... Expect in one account where forgot to keep sell order... I believe this is good stock but not sure whether it will consolidate for long or come up... All imp positive triggers are not respected... Not sure what more positive expected ???
325. IPOHNILEARN |   Link |May 29, 2022 2:57:22 PM
Monsoons touched Kerala shores, one can expect gap up opening , and can sustain until Q3-FY23. one can accumulate , cheapest stock in Fertilizer sector. more over it is into non-urea ( complex fertilizer business ), it's Jaikisan brand is a high margin business , their backward integration for phosphoric acid is a big boon. if EU, Russia agrees to clear shipments of odesa port (Primarily agri-comodities), it is a big booster for Fertilizer sector , as most of key raw materials can be sourced from there. Government is paying subsidies on time. one should not see this stock, as it can easily touch 52
325.3. IPOHNILEARN |   Link |May 30, 2022 1:22:40 AM
The reason for lower EBITDA of Goa Unit or for that matter even any commodity company
is as simple as given below ,
1. Higher Variable operating cost ( one need to have their own Captive berth in ports etc)
2. Not able to meet key input raw material / Intermediaries through backward Integration
3. Do not have Long terms purchasing agreements through JVs or some other means based out of Africa/ Middle east / Russia / South America etc suppliers for their RM
4. Inadequate product mix
5. High debt / Interest cost outgo
7. Lack of quality management
Hope You understood now of PPL Business model and its future prospects
325.4. Jetha Lal |   Link |May 30, 2022 2:20:43 AM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
Thank you so much for detailed explanation and we highly appreciate for your efforts.
The points you mentioned make a lot of sense and I do agree with you.
I hope things go as you said and as planned by company and near term future looks bright for this company amid global food crisis, good monsoon and budgetary support to fertilizer sector.

God bless you sir. Thanks again πŸ™
324. Gullbhai |   Link |May 30, 2022 1:27:44 AM
Net profit of Paradeep Phosphates rose 364.19% to Rs 35.65 crore in the quarter ended March 2022 as against Rs 7.68 crore during the previous quarter ended March 2021. Sales rose 22.17% to Rs 1898.75 crore in the quarter ended March 2022 as against Rs 1554.20 crore during the previous quarter ended March 2021.
For the full year,net profit rose 78.47% to Rs 398.45 crore in the year ended March 2022 as against Rs 223.26 crore during the previous year ended March 2021. Sales rose 52.16% to Rs 7858.72 crore in the year ended March 2022 as against Rs 5164.73 crore during the previous year ended March 2021
323. lokes |   Link |May 27, 2022 12:43:40 AM
IPO Guru IPO Guru (3800+ Posts, 4300+ Likes)
Listing can be around 41.5 to 44...its a good buy below 41 if available for those who didn't applied....
Whoever allotted multiple lots can book partial profit around 45-46 levels if it comes in some days and keep holding remaining. Whoever has 1 lot, better keep holding for longer term, it may give 40-50% returns in 6-12 months. Don't get panic if it goes down in short term like other recently listed IPOs due to market conditions etc. Next two quarter results can come good.
323.35. IPOHNILEARN |   Link |May 30, 2022 1:45:34 PM
@SHEKHAWAT T - w.r.t Rainbow Children please hold . please see my posting on HOLD recommendations. i was there in their today's Analyst call . Management commentary is good , and they were upbeat. many Analysts took it in a positive way. Omicron disrupted for 6 weeks in Jan - Feb. Normalcy is resumed now. they will post very good set of Q1 nos. it is crossed 500 now.
323.36. lokes |   Link |Jun 8, 2022 12:03:55 AM
IPO Guru IPO Guru (3800+ Posts, 4300+ Likes)
@shekhawat @have faith: better to hold rainbow for some months, it should bounce back along with markets, results were good and future growth should be there. i am holding few quantities only now from my allotments, sold mostly between 460 and 505....
@k.atar: yes everyone's opinion are always welcome so no one should have problem with someone's opinion/advice, no one is forcing anyone, now you may read comment no. 19 in this thread again.

Anyways, here in paradeep, as i mentioned above, my decision came right to sell at 47, anyone can buy again at lower price who wish so after selling initially.....

322. Kami |   Link |May 29, 2022 8:15:27 PM (200+ Posts)
it may be out of the nowhere, anyone still holding tega everything is positive in tega it still struggling to go above its base price, and cybertech
322.1. Kami |   Link |May 29, 2022 8:37:11 PM (200+ Posts)
MAPMYINDIA? i am holding both tega and mapmyindia as it already 6months, but it seems worst time to exit i was expecting result anyone has speculation for future
322.2. ShiningShiva |   Link |May 30, 2022 10:47:26 AM
People forget much hyped IPO after few months unless it gives exorbitant return.
321. Jetha Lal |   Link |May 28, 2022 4:19:13 PM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
PP Q4 result out. As expected Raw material cost increased. Q4 is not best quarter for Fertilizer and Agrochemical companies.

321.9. Jetha Lal |   Link |May 29, 2022 5:21:56 PM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
@Cautious ProPrio Sir,
Since Fertilizer and Agrochemical chemical businesses are seasonal in nature and usually Q4 is not best quarter for this industry (Q2 & Q3 are best) so we should not Annualise Q4 earning of this sector to calculate valuation.
Your further inputs are most welcome and if I am missing something then you can guide me sir.

Thank you πŸ™
321.10. Cautious ProPrio |   Link |May 29, 2022 5:38:38 PM
IPO Guru IPO Guru (1700+ Posts, 1000+ Likes)
@jetha lal..masters can't missed anything ..i remember you teach me lessons on cartrade future prospects
320. IPOHNILEARN |   Link |May 28, 2022 5:21:42 PM
Results snippet:
Seasonal industries need to be compared YoY
Top Line up by 22% ( YOY)
Bottom line up by 364% ( primarily supported by Change in Inventory, need watch this in Q1)
Raw material inflation need to be watched out as it is 117% YoY, looks like global supply chain disruption is the culprit.
Interest outgo is up by 55% ( need to watch down the line), other expenses need to be controlled.
PE works out to 5.28 ( cheap)
Overall Recommendation : HOLD / ADD on dips
319. Amit Chheda |   Link |May 27, 2022 9:51:22 AM
IPO Mentor IPO Mentor (600+ Posts, 800+ Likes)
Don't sell.

Operator bhai uc bhi le sakta he ..but plz sl laga ke hold karna for upmove.
319.3. krupa |   Link |May 27, 2022 11:19:08 AM
IPO Mentor IPO Mentor (800+ Posts, 500+ Likes)
Me to 48 par hi sell karungi
Bhale 3 months wait karna pade
319.4. Ritesh gupta ipo mantra |   Link |May 28, 2022 1:28:49 PM
This was sell on listing day candidate.

Sell, will see 35 levels soon, where bottom fishing can be done.

This matket conditions are very tough..we have to smart enough to books profits in proper timing...buy on lows and sell in rise for 5-7% gain is the mantra for successful trading in this volatile market.
318. Jetha Lal |   Link |May 27, 2022 7:19:27 PM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
Fertile land, good monsoon and global food crisis present india massive opportunity to feed world. India is among few countries in world which has abundant food for its own people and for the world too.
Seeing global food crisis as opportunity india should rampant food production this year and this will certainly boost Fertilizer and Agrochemical stocks.

318.1. krupa |   Link |May 27, 2022 7:46:30 PM
IPO Mentor IPO Mentor (800+ Posts, 500+ Likes)
Thanks for such information
Keep it up πŸ‘
318.2. Jetha Lal |   Link |May 27, 2022 11:07:52 PM
IPO Mentor IPO Mentor (600+ Posts, 1300+ Likes)
@krupa ji
Thank you πŸ™