Paradeep Phosphates increases by 12% after listing for stock exchange premium

The shares in Paradeep Phosphates Ltd. rose at the listing after its listing was subscribed 1.75 times.

The stock of the fertilizer producer without urea, part of the Adventz group (KK Birla group), is listed at Rs 43.5 on BSE, a premium of 3.7% to its listing price of Rs 42. On the NSE, the stock debuted at Rs 44, a premium of 4.7%.

It then rose to as much as Rs 47.25 apiece, an increase of 12.5%, from kl. 10:05

The listing of 1,501.7 crore Rs had got off to a slow start and accounted for only 51% by the end of the second day.

The listing included a new issue to the value of 1,004 crore Rs, according to its red herring prospectus. It also consisted of an offer of sale from the Government of India which relieved 11.85 crore shares worth Rs 497.70 crore at the upper end of the price range of Rs 39-42 apiece.

Paradeep Phosphates was acquired by a joint venture between Zuari Agro Chemicals Ltd. and OCL as part of a 2002 divestiture process by the government.

The company will use Rs 530 crore from the new issue to complete the acquisition of a Goa facility. It will also repay loans worth Rs 300 crore and the rest will be for general business purposes.