IPO Screener: Paradeep Phosphates issue opens today

K. S. Badri Narayanan | | Updated on: May 17, 2022

Price band fixed at ₹39-42/share, market lot size of 350 shares

The ₹1,501-crore initial public offering of Paradeep Phosphates Ltd will hit the market on Tuesday. The company has fixed the price band at Rs 39-42 and investors can apply in a lot size of 350 shares.

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.

Centre to sell stake in OFS

Under the OFS, its promoter, Zuari Maroc Phosphates Pvt Ltd (ZMPPL), will offer up to 75,46,800 shares, while the Union Government 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 at ₹42 apiece, aggregating to ₹450.52 crore.

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 partly finance the acquisition of the fertiliser manufacturing facility in Goa, payment of debt and 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. It has a manufacturing facility at Paradeep, Odisha, which manufactures Di-ammonium Phosphate (DAP), NPK, sulphuric acid and phosphoric acid. It is acquiring another fertiliser facility in Goa, which includes 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.

Published on May 17, 2022
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