Paradip Phosphates Ltd (PPL) is planning to raise up to ₹1,255 crore in fresh capital through an IPO to finance the acquisition of Zuari Agro Chemicals’ Goa facility and retire a part of its debt.
PPL, formerly a public sector enterprise, is now part of Saroj Kumar Poddar’s Advantz Group, which owns Zuari Agro Chemicals and Chambal Fertilizers.
The Center wants to divest its remaining 19.55% stake in PPL through an offer for sale, after which private sector promoters will take full control of PPL.
Zuari Marrow Phosphates Private Limited (ZMPPL), a joint venture of Zuari Agro Chemicals Limited (ZACL) and OCP Group SA (OCP), currently holds 80.45% of the equity share capital of PPL.
To increase the company’s size and reach new markets, PPL in March entered into a Business Transfer Agreement (BTA) with Zuari Agro Chemicals for the purchase of its fertilizer plant in Goa at an enterprise value of over ₹2,000 crore.
After the acquisition of the Goa facility, the capacity of PPL will increase to 3 MMTPA (Million MT per annum) for DAP/NPK (Di-Ammonium Phosphate/Nitrogen, Phosphorous, Potassium) combined.
PPL President and COO Sableel Nandi said, “PPL will selectively explore inorganic growth opportunities and target acquisitions that will strengthen our market position, allow us to expand our product portfolio and expand our sales, marketing and distribution network. will enable it to increase.”
“The acquisition will help PPL reach the high fertilizer demand markets of Maharashtra and Karnataka,” said Mr. Nandi.
The PPL will use the fresh funds for repayment/prepayment of certain borrowings and for meeting general corporate purposes.
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