Shares of Paradip Phosphate took a beating on Dalal Street today and paid around 4 per cent premium to its allottees. Equity shares of Paradip Phosphates Limited admitted on NSE: 43.55 per share while it made its debut on NSE 44 per share level. According to market experts, those who have applied for listing gains can book profits at the current levels, while value investors can hold the stock by maintaining the stop loss. 40 levels.
to speak on Paradip Phosphate share price Santosh Meena, Head of Research, Outlook, Swastika Investmart said, “Pardeep Phosphates Ltd. has opened at Rs 44 or 5% above its issue price. The weak listing of the company is attributed to the current market sentiments and weak investor response. The company is one of the largest manufacturers of non-urea-based fertilizers and has a competitive advantage in terms of backward integration and location. However, the company is operating in a highly regulated industry, with a lot of emphasis on the agriculture sector. There is greater dependence; occupation is subject to climatic conditions and is cyclical in nature.”
Advising the allottees to remember the important range of Paradip Phosphate shares, Ravi Singhal, Vice Chairman, GCL Securities said, “Paradip Phosphate share price is currently trading at Rs. 43 to 52 and those who applied for listing profit can put the stock maintaining the stop loss 43 and exit on bounce back from current levels.”
Ravi Singhal of GCL Securities, while advising situational investors to avoid fresh over the counter buys, said, “There is no doubt that Paradip Phosphate shares were offered at attractive valuations, but one should only look at value buying. Should enter the shares keeping in. The price in the stock approaches the buy level approx. 32 to 36 each level. If the stock reaches these levels then one can buy the stock for the long term goal of maintain stop loss at 52 30. If the price does not reach the buying level then I suggest an investor to look at other options like Deepak Fertilizers.”
In 3-day subscriptions from 17 to 19 May 2022, Paradip Phosphates IPO (Initial Public Offering) was subscribed 1.75 times while its retail portion was subscribed 1.37 times. The non-urea fertilizer manufacturer has made it clear that it aims to utilize the proceeds of the fresh issue to partially finance the acquisition of a fertilizer manufacturing facility in Goa, repayment of loans and for general corporate purposes.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.