Paradeep Phosphates Limited IPO (Paradeep Phosphates IPO) Details
Incorporated in 1981, Paradeep Phosphates Limited is a manufacturer of non-urea fertilizers in India. The company is engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (namely NPK-10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid.
Paradeep Phosphates Limited is the second largest private sector manufacturer of non-urea fertilizers and Di-Ammonium Phosphate(DAP) in terms of volume sales for the nine months ended December 31, 2021. The company’s fertilisers are marketed under the brand names Jai Kisaan-Navratna and Navratna.
The manufacturing facility of Paradeep Phosphates Limited is located in Paradeep, Odisha, and includes a DAP and NPK production facility, a Sulphuric acid production plant and a Phosphoric acid production plant. The facility can store up to 120,000 MT, 65,000 MT, 55,000 MT and 35,000 MT of Phosphate Rock, Phosphoric acid, Sulphur and MOP, respectively.
The company established an extensive sales and distribution network, with a strong presence in the eastern part of India. As of March 31, 2022, Paradeep Phosphates distributed products across 14 states in India through the network of 11 regional marketing offices and 468 stock points.
As of March 31, 2022, the company’s network includes 4,761 dealers and over 67,150 retailers serving over five million farmers in India.
Competitive Strengths
- Well-positioned to capture favourable Indian fertilizer industry dynamics supported by conducive government regulations.
- The second largest manufacturer of Phosphatic fertilizers in India.
- Driving raw material efficiency through backward integration of facilities and effective sourcing.
- Secure and certified manufacturing facility and infrastructure and unutilised land available for expansion.
- The strategic location of our 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.
Company Financials:
| Particulars | For the year/period ended (₹ in Millions) | |||
|---|---|---|---|---|
| 31-Dec-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 71,862.67 | 44,231.67 | 50,103.25 | 56,276.58 |
| Total Revenue | 59,736.88 | 51,839.41 | 42,277.76 | 43,972.13 |
| Profit After Tax | 3,627.84 | 2,232.68 | 1,932.20 | 1,589.63 |
Objects of the Issue:
The net proceeds of the Fresh Issue are proposed to be utilised in the following manner:
- Part-financing the acquisition of the Goa Facility.
- Repayment/prepayment of certain of our borrowings.
- General corporate purposes.
Paradeep Phosphates IPO Details
| Paradeep Phosphates IPO Date | May 17, 2022 to May 19, 2022 |
| Paradeep Phosphates IPO Face Value | ₹10 per share |
| Paradeep Phosphates IPO Price | ₹39 to ₹42 per share |
| Paradeep Phosphates IPO Lot Size | 350 Shares |
| Issue Size | [.] shares of ₹10 (aggregating up to ₹1,501.73 Cr) |
| Fresh Issue | [.] shares of ₹10 (aggregating up to ₹1,004.00 Cr) |
| Offer for Sale | 118,507,493 shares of ₹10 (aggregating up to ₹497.73 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
| Company Promoters | Zuari Maroc Phosphates Private Limited, Zuari Agro Chemicals Limited, OCP S.A and President of India, acting through the Ministry of Chemicals and Fertilizers, Government of India are the company promoters. |
Paradeep Phosphates IPO Timeline (Tentative Timetable)
Paradeep Phosphates IPO opens on May 17, 2022, and closes on May 19, 2022. The Paradeep Phosphates IPO bid date is from May 17, 2022 10.00 A.M. to May 19, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| Paradeep Phosphates IPO Opening Date | May 17, 2022 |
| Paradeep Phosphates IPO Closing Date | May 19, 2022 |
| Basis of Allotment | May 24, 2022 |
| Initiation of Refunds | May 25, 2022 |
| Credit of Shares to Demat | May 26, 2022 |
| Paradeep Phosphates IPO Listing Date | May 27, 2022 |
Paradeep Phosphates IPO Lot Size
The Paradeep Phosphates IPO lot size is 350 shares. A retail-individual investor can apply for up to 13 lots (4550 shares or ₹191,100).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 350 | ₹14,700 |
| Maximum | 13 | 4550 | ₹191,100 |
Paradeep Phosphates IPO Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding |
Paradeep Phosphates IPO Review
PPL is the second-largest non-urea fertiliser manufacturer in the country. Considering the primary thrust on the agriculture segment by the Government, this company is poised for bright prospects in the future. The issue is too reasonably priced and is worth considering for medium to long term rewards.
