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The ₹1,501-crore initial public offering of Paradeep Phosphates Ltd was subscribed 29 per cent at the end of Day 1. The IPO has been priced at ₹39-42 a share and investors can apply in a lot size of 350 shares.
While the retail investors’ portion got subscribed 57 per cent or 0.57 times, the HNI portion was subscribed just 0.07 times and QIBs are yet to bid.
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.
₹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 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.
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