Paradeep Phosphates lists at a 9% premium

After making its debut on the public exchanges today, the shares of fertiliser business Paradeep Phosphates soared by more than 9.4 percent. As stock exchanges, in general, are on the rise, it is one of the best performing equities on listing day. While the BSE Sensex is trading 340 points higher than the previous close, the NIFTY has gained 106 points in the early session.

According to BSE data, the company's market capitalisation is Rs 3,730 crore. The listing benefits are significantly greater than the unofficial grey market premium of 50 paise. Investors oversubscribed the IPO 1.75 times. The IPO was oversubscribed by retail investors 1.37 times.

The company produces, trades, distributes and sells a wide range of complex fertilisers, including Di-Ammonium Phosphate (DAP), three grades of Nitrogen-Phosphorus-Potassium (NPK), Zypmite, Phospho-gypsum, and Hydroflorosilicic Acid (HFSA).

Its financial performance has increased over time, with net profit reaching 223 crores in FY21, up from 158 crores in FY19. Most analysts advised investors to subscribe to the IPO based on its reasonable valuation and the Indian fertiliser industry's great prospects, which are supported by the government through fair rules.