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All that you should know about the Company before applying for the IPO.

May 16, 2022     

The public issue of equity shares of Paradeep Phosphates Limited will open for subscription on May 17, 2022 and closes on May 19, 2022. It is expected to list on the stock exchanges on May 27, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Incorporated in 1981, it is the second largest private sector manufacturer of non-urea fertilizers in India and the second largest private sector manufacturer in terms of Di-Ammonium Phosphate (DAP) volume sales. The Company is part of the Adventz Group and OCP Group S.A. (Morocco). The Company is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, 3 grades of Nitrogen-Phosphorus-Potassium (NPK), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid. It is also engaged in the trading, distribution and sales of Muriate of Potash, Ammonia, Speciality Plant Nutrients and City compost. Its fertilizers are marketed under some of the key brand names in the market ‘Jai Kisaan – Navratna’ and ‘Navratna’.

Phosphorous is one of the 3 main nutrients most commonly used in fertilizers. It is produced by processing Phosphate rock. The Company sources its raw materials (Sulphuric and Phosphoric acids, which it utilizes for manufacturing DAP and NPK) locally as well as from various other countries such as Morocco, Jordan, Qatar and Saudi Arabia. It has total annual installed granulation capacity of DAP and NPK production plant of 1.5 million MT, Sulphuric acid production plant 1.3 million MT, and Phosphoric acid production plant 0.30 million MT.

Its manufacturing facility is strategically located close to the Paradeep port in Paradeep, Odisha. The Company has a closed conveyor belt which is 3.4 km long connecting the Paradeep port to its manufacturing facility. Moreover, it also owns a railway siding and a cross country pipeline which enables it to transport raw material directly to its facility.

Who are the Promoters of the Company?

Zuari Maroc Phosphates Private Limited, Zuari Agro Chemicals Limited, OCP S.A and the President of India (acting through the Department of Fertilizers, Ministry of Chemicals & Fertilizers, Government of India)

Positives about the Company

  • Well-positioned to capture favorable Indian fertilizer industry dynamics supported by conducive government regulations
  • Second largest private sector manufacturer of Phosphatic fertilizers in India with a focus on the non-urea segment, in terms of phosphatic
  • Driving raw material efficiency through backward integration of facilities and effective sourcing
  • Secure and certified manufacturing facility and infrastructure and unutilized land available for expansion
  • Strategic location of a manufacturing facility and 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

Who are its key competitors?

  • Coromandel International Limited
  • Chambal Fertilizers Chemicals Limited
  • Deepak Fertilizers and Petrochemicals Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Part-financing the acquisition of the Goa Facility
  • Repayment/prepayment of certain of its borrowings
  • General corporate purposes

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

IPO Details

IPO Size ₹ 1,501.73 Crore *
Offer Mix Fresh issue ₹ 1,004 Crore + Offer For Sale ₹ 497.73 Crore
Price Band ₹ 39 - ₹ 42
Lot Size 350 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 14,700 (1 lot) | Max. ₹ 1,91,100 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Link Intime India Private Limited
Cut-off time for UPI Mandate Confirmation 20-May-2022 (up to 12:00 PM)
* at upper price band

Category Wise Availability *

QIB ₹ 750.86 Crore
(50% of Issue Size)
NIB ₹ 225.26 Crore
(15% of Issue Size)
Retail ₹ 525.61 Crore
(35% of Issue Size)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens May 17, 2022
IPO Closes May 19, 2022
Finalization of the basis of allotment May 24, 2022
Unblocking of funds / Initiation of refunds May 25, 2022
Credit of equity shares to Demat accounts May 26, 2022
Listing of equity shares May 27, 2022
Source: Company RHP
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