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Paradeep Phosphates Limited plans to raise Rs 1,501.73 crore through an initial public offering (IPO). The subscription for the IPO will open on May 17 and end on May 19, 2022. The price band is fixed at Rs 39 – Rs 42 apiece.
The IPO comprises of fresh issue of shares totalling Rs 1,004 crore and Offer For Sale aggregating up to Rs 497.73 crore. The face value is Rs 10 per equity share.
Company Summary
Paradeep Phosphates Limited is the second largest private sector manufacturers of non-urea fertilizers in India and the second largest in private sector manufacturer in terms of Di-Ammonium Phosphate volume sales for the nine months ended December 2022.
The company is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (NPK), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid.
The company’s manufacturing facility is located at Paradeep, Odisha, and includes a DAP and NPK production facility, a Sulphuric acid production plant and a Phosphoric acid production plant.
As of end of March 2022, the company distributed products across 14 states in India through a network of 11 regional marketing offices and 468 stock points. Its network includes 4,761 dealers and over 67,150 retailers serving over five million farmers in India. The company has a dedicated team of 70 marketing officers, 9 junior agronomists and 71 field assistants.
Company Strengths
- Paradeep is well-positioned to capture favourable Indian fertilizer industry markets supported by conducive government regulation.
- The company is the second largest private sector manufacturer of Phosphatic fertilizers in India with a focus on the non-urea segment.
- Improved operating efficiency through backward integration of facilities and effective sourcing.
- Its manufacturing facility and infrastructure is certified and the company has unused land that is available for expansion.
- The company’s manufacturing facility is strategically located that has sizeable material storage, handling and port facilities
- Established brand name backed by an extensive sales and distribution network.
- Strong parentage, experienced management team and prominent shareholders.
Company Financials
Particulars | 9MFY22 | FY21 | FY20 | FY19 |
Total Assets | 7,186.26 | 4,423.16 | 5,010.32 | 5,627.65 |
Total Revenue | 5,973.68 | 5,183.94 | 4,227.77 | 4,397.21 |
Profit After Tax | 362.78 | 223.26 | 193.22 | 158.96 |
*All numbers are Rs in crore
Purpose of the IPO
The net proceeds from the fresh issue and Offer For Sale (OFS) will be utilised as follows,
- Part-financing the acquisition of the Goa facility aggregating to Rs 520 crore.
- Repayment/prepayment of certain of its borrowings totalling Rs 300 crore.
- General corporate purposes.
- To carry out the company’s Offer for Sale to achieve the benefits of listing the equity shares on stock exchanges and expects to enhance visibility as well as brand image among their existing and potential customers through the listing.
Company Promoters
Zuari Maroc Phosphates Private Limited, Zuari Agro Chemicals Limited, OCP S.A and President of India, on behalf of the Ministry of Chemicals and Fertilizers, Government of India are the promoters of the company.
IPO Details
|
IPO Opening Date |
17-May-22 |
|
IPO Closing Date |
19-May-22 |
|
Face Value |
Rs 10 per equity share |
|
Issue Price (Price Band) |
Rs 39 to Rs 42 per share |
|
Lot Size |
350 Shares |
|
Issue Size |
Rs 1,501.73 crore |
|
Fresh Issue |
Shares worth Rs 1,004.00 crore |
|
Offer for Sale |
Shares worth Rs 497.73 crore (11.85 crore shares of face value Rs 10 each) |
|
Issue Type |
Book Built Issue IPO |
|
Listing At |
BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Minimum | 1 | 350 | Rs 14,700 |
Maximum | 13 | 4550 | Rs 191,100 |
IPO Allotment and Listing Details
Event | Date |
Shares Allotment Date | 24-May-22 |
Initiation of Refunds | 25-May-22 |
Credit of Shares to Demat | 26-May-22 |
IPO Listing Date | 27-May-22 |
You can check your allotment in BSE or Link Intime