Zuari Agro Chemicals-backed Paradeep Phosphates Ltd has set the price band for its initial public offering at Rs 39-42 a share. The IPO will open on May 17 for subscription and close on May 19. The anchor investor bids will open on May 13.
At the upper price band, the company plans to raise around Rs 1,502 crore. The company plans to go listed on May 27.
The IPO consists of a fresh issue of Rs 1,004 crore while an offer-for-sale of up to 118.51 million shares by its existing shareholders and promoters.
The OFS comprises 6.02 million shares by Zuari Maroc Phosphates Pvt Ltd (ZMPPL), a joint venture of Zuari Agro Chemicals and OCP Group SA, up to 112.49 million shares by the government. ZMPPL has 80.45 percent stake, while the government holds around 19.55 percent stake in the company.
Axis Capital, ICICI Securities, JM Financials, SBI Capital are the lead managers to the issue.
The proceeds from the issue worth Rs 520 crore will be used to finance the acquisition of the Goa facility of Zuari Agro Chemicals Ltd. The consideration for buying this facility has been decided at Rs 578.54 crore.
As of March 31, 2021, the total annual fertiliser capacity of the Goa plant is 1.2 million MT per annum, with a breakup of 0.4 million MT per annum of urea and 0.8 million MT per annum of phosphates. In addition, the plant also manufactures about 0.23 million MT per annum of ammonia, which is largely utilised in the production of urea. The Goa facility also has a captive power plant, a railway siding, infrastructure to store raw material and finished goods and a bagging plant.
The firm also plans to use Rs 300 crore to pay debt. As of March 31, 2022, its total borrowings was at Rs 2957.01 crore.
For FY21, the firm reported a revenue of Rs 5164.73 crore as against Rs 4192.87 crore a year ago. Net profit for the period stood at Rs 223.27 crore versus Rs 193.22 crore last year.
PPL is a leader in manufacturing, trading, distribution and sales of a variety of complex fertilisers such as di-ammonium phosphate/nitrogen-phosphorus-potassium (DAP/ NPK) and its fertilisers are sold under brands like ‘Jai Kisaan - Navratna’ and ‘Navratna’.
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