Paradeep Phosphates' shares traded at a premium in the grey market — an unofficial market for unlisted securities — ahead of the fertiliser company's debut on stock exchanges BSE and NSE.
Dealers said Paradeep shares changed hands at a premium of up to Rs 3 ahead of the listing on Dalal Street.
| Date | Grey market premium (in rupees) |
| 26-May | 0.5 |
| 25-May | 0.5 |
| 24-May | 0.5 |
| 23-May | 1 |
| 21-May | 2 |
| 20-May | 1 |
| 19-May | 3 |
| 18-May | 3 |
| 17-May | 3 |
| (Source : IPO Watch) | |
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"Paradeep Phosphates too received a dull response from market participants due to the continuous sell-off in the broader market. However, Paradeep Phosphates was priced reasonably compared to its peers. Looking at market conditions, it seems Paradeep Phosphates too shall list at par around its issue price," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.
Paradeep Phosphates' IPO to raise up to Rs 1,502 crore saw an overall subscription of 1.8 times the shares on offer.
| Category | Subscription | Portion reserved |
| Qualified institutional buyer | 3 times | 50% |
| Retail investor | 1.4 times | 25% |
| Non-institutional investor | 82% | 15% |
The initial share sale, which was a combination of fresh issuance and an offer for sale (OFS), was open for bidding from May 17 to May 19.
Potential investors could bid for Paradeep shares in a range of Rs 39-42 apiece in multiples of 350. At the upper end of the price band, one lot is worth Rs 14,700.
The listing of Paradeep Phosphates comes amid wild swings on Dalal Street, with benchmark indices having retreated more than 13 percent from their peaks amid sustained foreign fund outflows.
First Published: May 27, 2022 9:08 AM IST
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