Paradeep Phosphates Ltd. (PPL) announced the unveiling of its initial public offering (IPO) on May 17, 2022 in the price band of ₹39-42 per share of a face value of ₹10 each. Bids can be made for a minimum of 350 shares and in multiples of 350 thereafter. The IPO will close on May 19 and the government will be offloading its entire stake in the company.
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The IPO comprises fresh issue of equity shares aggregating to ₹1,004 crore, and offer-for-sale (OFS) up to 11,85,07,493 equity shares by promoter selling shareholders and the Government of India.
The offer-for-sale comprises up to 60,18,493 equity shares by Zuari Maroc Phosphates Pvt. Ltd. and up to 11,24,89,000 equity shares by the President of India, acting through the Ministry of Chemicals and Fertilizers, Government of India.
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At the upper band, the government will mobilise about ₹473 crore from the proceeds of the IPO.
Managing Director Narayanan Suresh Krishnan said, “Paradeep Phosphates is well-positioned to capture favourable Indian fertilizer industry dynamics supported by conducive government regulations.”
“PPL is driving raw material efficiency through backward integration of facilities and effective sourcing. Our facilities in Paradip and Goa offer strategic location of manufacturing facility and sizeable material storage, handling and port facilities,” he added.
The company intends to utilise the net proceeds from fresh issue towards part-financing the acquisition of the Goa facility of Zuari Agro Chemicals Ltd., a group entity, repayment/prepayment of certain borrowings, and to meet general corporate purposes. Shares of the company will be listed on both BSE and NSE.