Paradeep Phosphates Limited

How to check the Paradeep Phosphates IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. This is also true in the case of the Paradeep Phosphates IPO. 

The Paradeep Phosphates IPO’s closing date is 19 May 2022. The Paradeep Phosphates IPO’s allotment date has been set five days later, on 24 May 2022.

Here’s a step-by-step guide on how to check the Paradeep Phosphates IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the Invest in IPO section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your allotment status will be mentioned

About Paradeep Phosphates IPO

In the early 2000s, the then state-owned fertiliser manufacturer Paradeep Phosphate was knee deep in a debt of ₹1,000 crore. It had also suffered losses worth ₹500 crore, despite the government writing off three loans. 

Hence, in a bid to rescue the loss-making entity, the government decided to privatise it. The government sold off a majority stake to a KK Birla Group company in 2002. Since the change in the management, the company has scripted a complete turnaround. 

Today, it is the second largest private sector manufacturer of non-urea fertilisers in India.  Paradeep Phosphates is also the second largest private sector manufacturer of Di-Ammonium Phosphate (DAP) in terms of volume sales for the first nine months of FY22. Most importantly, it has demonstrated strong revenue and profit  growth. 

The company is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilisers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (NPK), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid. Some of the key brands of the company are Jai Kisaan – Navratna and Navratna. 

The Paradeep Phosphates IPO is a combination of offer for sale (OFS) and fresh issue. As a part of OFS, the government is selling its 19.5% stake in the company. The proceeds from the fresh issue of Paradeep Phosphate Ltd IPO will be used for partially financing the acquisition of its Goa facility and repayment of debt. 

Here are key details about the Paradeep Phosphates IPO: 

Financial snapshot

Here’s a table highlighting the company's key financial metrics

Here’s a quick look at Paradeep Phosphates IPO’s strengths, risks and threats

Strengths

1. The second largest company in terms of phosphatic fertiliser (DAP and NPK complexes) capacity, as of 31 March 2022
2. Distributes products across 14 states in India through their network of 11 regional marketing offices and 468 stock points
3. Its network also includes 4,761 dealers and over 67,150 retailers, which cater to over 50 lakh farmers in India
4. Has entered into long term agreement for procuring some of its raw materials
5. Strong parentage, experienced management team and prominent shareholders 

Risks and threats

1. The demand for its fertilisers depends on the cropping pattern, which may vary each year for the major crops
2. Seasonal variations and unfavourable local as well as global weather patterns may impact its business
3. Operates in the regulated fertiliser industry. The government subsidies accounted for 34% of its revenue in 9MFY22
4. Excluding subsidies, Maharashtra, Uttar Pradesh and Odisha combined accounted for approximately 50% of its revenue in 9MFY22
5. Has only one manufacturing facility until the the transaction for acquiring the Goa facility is completed

Paradeep Phosphates IPO details

| Paradeep Phosphates IPO date

The offer document filed by the company with the SEBI mentions that the Paradeep Phosphates IPO’s opening date – in other words, the Paradeep Phosphates IPO launch date – will be on 17 May 2022. The Paradeep Phosphates IPO closing date is 19 May 2022. After this, investors will be updated about the allotment status on 24 May 2022. 

Investors, who have been allotted shares, can expect them to be credited in their demat account on 26 May 2022. The Paradeep Phosphates IPO listing date is 27 May 2022. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.   

| Paradeep Phosphates IPO price band

The entire IPO is a book-built issue. The Paradeep Phosphates IPO price band has been set between ₹39 and ₹42 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Paradeep Phosphates IPO listing price will be determined on 27 May 2022. The listing price is the price at which the shares of a company make their debut on the stock exchanges.

| Paradeep Phosphates IPO lot size

The Paradeep Phosphates IPO details have been declared. The Paradeep Phosphates IPO lot size is set at 350 shares, and an investor can apply for a minimum of 1 lot. Individual investors applying under the retail category can only apply for up to 13 lots (4,550 shares). Meanwhile, the Paradeep Phosphates IPO issue size is ₹1,502 crore.

How to apply for the Paradeep Phosphates IPO?

If you are interested in this investment opportunity but unsure how to apply for the Paradeep Phosphates IPO, here we are listing out the steps for you. 

Here’s a step-by-step guide on how to apply for the Paradeep Phosphates IPO on Upstox: 

1. 1. Login to your Upstox account, using your six-digit PIN
   2. After successfully logging in, click on ‘Discover’
   3. On the Discover tab, you will find the ‘Invest in IPO’ section
   4. Under the Invest in IPO section, look for the ‘Paradeep Phosphates IPO’ tab and click on it
   5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
   6. Confirm and click on ‘Apply’
   7. Accept the mandate on your UPI app

Open a demat account with Upstox to apply for the Paradeep Phosphates IPO

To apply for the Paradeep Phosphates IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox.

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the Paradeep Phosphates IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the Paradeep Phosphates IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.