All that you should know about the Company before applying for the IPO.
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.
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.
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)
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:
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 Size | ₹ 1,501.73 Crore * |
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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) |
QIB |
₹ 750.86 Crore (50% of Issue Size) |
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NIB |
₹ 225.26 Crore (15% of Issue Size) |
Retail |
₹ 525.61 Crore (35% of Issue Size) |
Activity | Date |
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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 |
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