Paradeep Phosphates IPO subscribed 51% day before close on retail interest

Retail investor portion subscribed 91%, HNI 20%; institutional investor category received negligible bids

Paradeep Phosphates’ initial public offering (IPO) was subscribed 51 per cent on Wednesday, a day before its close. The retail investor portion of the issue was subscribed 91 per cent, high-networth individual (HNI) portion was covered 20 per cent and institutional investor category had received negligible bids. Paradeep Phosphates is India’s second-largest private sector manufacturer of phosphatic fertilizers. The company’s IPO comprises Rs 1,004 crore fresh fund raise and an offer for sale of Rs 498 crore. The price band for the issue is Rs 39-42 per share. At the top-end, the company is valued at Rs 3,421 crore. The price-to-earnings (P/E) ratio works out to 7.1 times based on FY22 annualised earning per share of Rs 5.94, nearly half the industry average P/E of 14 times.

Ethos IPO subscribed 27% on day 1

Luxury watch retailer Ethos’ initial public offering (IPO) was subscribed 27 per cent on Wednesday, the first day of the issue. The retail investor portion of the issue was subscribed 53 per cent. Ethos’ IPO comprises fresh fund raise of Rs 375 crore and an offer for sale of Rs 97.3 crore. The price band for the issue is Rs 836-878 per share. At the top-end, the company is valued at Rs 2,050 crore. Based on annualised earnings per share of Rs 9.13 for FY22, the price-to-earnings (P/E) multiple works out to 96.2 times. “The IPO is richly priced and the company will have to continue growing its business at a high growth rate in order to justify its valuation,” says a note by Marwadi Financial Services.