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Today is the last day to subscribe for the ₹1,501-crore initial public offering of Paradeep Phosphates Ltd. . Investors can apply in a lot size of 350 shares at a price band of ₹39-42.
At the end of Day 2, the issue was subscribed 51 per cent. While the retail investors’ portion has been subscribed 95 per cent or 0.95 times, the HNIs quota has seen subscrined just 0.20 times, while QIBs are yet to bid.
IPO details
The IPO comprises a fresh issue of equity shares worth ₹1,255 crore and an offer for sale (OFS) of up to 12 crore shares by its existing shareholders and promoters.
Under the OFS, the promoter, Zuari Maroc Phosphates Pvt Ltd (ZMPPL), will offer up to 75,46,800 shares, while the Centre will offer up to 11.25 crore shares. The Centre holds 19.55 per cent stake, while 80.45 per cent is held by Zuari Maroc Phosphates Pvt Ltd.
Raises ₹450 crore from anchor investors
The fertiliser company last week (on Friday) raised a little over ₹450 crore from anchor investors, who have been allocated about 10.73 crore shares priced at ₹42 a share.
Among the anchor investors are Goldman Sachs, BNP Paribas Arbitrage, Kuber India Fund, Copthall Mauritius Investment, Societe Generale, ICICI Prudential Mutual Fund (MF), Nippon India MF, SBI MF, Tata MF, HDFC MF, DSP MF and Mirae MF.
Utility of funds
Proceeds of the fresh issue will be used to part-finance the acquisition of a fertiliser manufacturing facility in Goa, payment of debt and for general corporate purposes.
Business model
Paradeep Phosphates is in the business of manufacturing, trading, distribution and sales of a variety of complex fertilisers, particularly phosphate-based fertilisers. Its acility at Paradeep, Odisha, manufactures Di-ammonium Phosphate (DAP), NPK, sulphuric acid and phosphoric acid. The facility being acquired in Goa makes phosphate-based entities as well as urea.
Lead managers
Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the lead managers to the issue. PPL’s primary focus is the production and marketing of complex phosphatic fertilisers.
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