Paradeep Phosphates, Zuari Agro-Chemicals backed company, has announced a price band for its Rs 1,502 crore IPO, at Rs 39-42 apiece. The issue will open for subscription on 17 May and close on 19 May, while the anchor investor bids will open on Friday, 13 May. The public issue consists of a fresh issue of shares worth Rs 1,004 crore while an offer-for-sale of up to 11.85 crore shares by existing shareholders and promoters. As part of the OFS, selling shareholders — Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will offload 60.18 lakh equity shares and Government of India will sell up to 11.24 crore equity shares.
Investors can bid for a lot of 350 shares, and in multiples thereafter. Up to 50 per cent of the net offer will be reserved for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs), and remaining 35 per cent for retail investors. The stocks are likely to list on BSE and National Stock Exchange (NSE) on 27 May 2022.
Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers to the issue. Link Intime India Private Ltd will be the registrar to the issue. Upon successful listing in stock exchanges, Paradeep Phosphates will join the likes of Coromandel International, Chambal Fertilizers Chemicals, and Deepak Fertilizers and Petrochemicals. The average industry peer group P/E ratio stands at 15.73x. The firm intends to utilise the proceeds from the fresh issue towards part-financing the acquisition of a Goa facility and repayment and prepayment of certain of its borrowings.
Axis Capital, in an IPO note, said that Paradeep Phosphates is the second largest private sector manufacturer of non-urea fertilizers in India and 2nd largest in terms of Di-Ammonium Phosphate (DAP) volume sales for the 9 months ended December 31, 2021. It is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, three grades of NitrogenPhosphorus-Potassium (NPK) (namely NPK-10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid (HFSA). Paradeep Phosphates is also engaged in the trading, distribution and sales of Muriate of Potash (MOP), Ammonia, Speciality Plant Nutrients (SPN) and City compost. Their fertilizers are marketed under some of the key brand names in the market ‘Jai Kisaan – Navratna’ and ‘Navratna’.
Paradeep Phosphate’s manufacturing facility is located in Paradeep, Odisha and includes a DAP and NPK production facility, a Sulphuric acid production plant and a Phosphoric acid production plant. In addition, the plant has 3 operational concentrators to concentrate weak Phosphoric acid into strong Phosphoric acid.