Fertilizer company Paradip Phosphates Limited will come up with its Initial Public Offering (IPO) next week on Tuesday, May 17, 2022 and the price band has been fixed 39-42 per share. The government will sell its entire 19.55 per cent stake in the company through an issue which will close on May 19.
Initial share sale involves fresh issue of equity shares 1,004 crore and an Offer for Sale (OFS) component of 11.85 crore equity shares by promoters and other sale shareholder.
As part of the OFS, to be sold to shareholders, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will sell 60,18,493 equity shares and Government of India will sell 11,24,89,000 equity shares. IPO,
At the upper end of the price band, the sale value of the secondary share by the promoter and the government will be 497.7 crores. At present, ZMPPL holds 80.45 per cent stake in Paradip Phosphates, while the government holds 19.55%.
The proceeds from the fresh issue of shares will be used by the company for partial financing of acquisition of a Goa facility and for repayment of certain borrowings.
Established in 1981, Paradip Phosphates Limited is primarily engaged in manufacturing, trading, distributing and selling various types of Complex Fertilizers like Di-Ammonium Phosphate (DAP) and NPK Fertilizers. Company reported profit of 362.7 crore in the nine-month period ended 31 December 2021, while the profit for the financial year 2021 was 223 crores.
Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers of the issue. The company’s shares are expected to be listed on the stock exchanges BSE and NSE on May 27, 2022.