Paradeep Phosphates Ltd IPO

The IPO season has once again blossomed in the Indian Stock Market. LIC - India’s biggest IPO till date was live for subscription, at last, garnering a total subscription rate of 2.95 times. Now, many companies, which have been looking forward to releasing their IPOs have declared the details, and here, we will be talking about the latest talk of the town IPO for Paradeep Phosphates Ltd, which is going live from 17th May 2022. Let’s find some information about its operations to help you decide if this IPO is investment worthy!

About Paradeep Phosphates Ltd -

Paradeep Phosphates Ltd is a company established under Zuari Agro Chemical Group. The non-urea fertilizer manufacturing company is the third largest private sector manufacturer in India and second largest in terms of Di-Ammonium Phosphate (“DAP'') volume sales as of March 2021. The company is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (“NPK”) (namely NPK-10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydrofluorosilicic Acid (“HFSA”).  Fertilizers of the company are marketed under some of the key brand names in the market ‘Jai Kisaan–Navratna’ and ‘Navratna’. The company has an established track record of delivering robust financial performance. The total income for the Financial Years 2021 was ₹ 51,839.41 million, while the profit for the year stood at ₹ 2,232.68 million, The Company was incorporated in 1981. Zuari Maroc Phosphates Private Limited (“ZMPPL”), a joint venture of Zuari Agro Chemicals Limited (“ZACL”) and OCP Group S.A. (“OCP”), currently holds 80.45% of the equity share  capital  of  the Company,  with  the  balance  being  held  by  the  Government  of  India. 

Paradeep Phosphates Ltd IPO details -

Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Paradeep Phosphates Ltd  IPO date and its share price.

Paradeep Phosphates Ltd IPO date -

According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from 17th, May and will be available for subscription until 19, May 2022.

Paradeep Phosphates Ltd IPO issue size -

The total issue size of the latest Paradeep Phosphates Ltd IPO is declared to be ₹1,501.73 crores. The fresh issue consists of 45,54,14,200 shares aggregating up to ₹1,004.00 Crores. The offer for sale consists of 12,00,35,800 shares aggregating up to ₹497.73 Crores.

50% of the offer is reserved for QIBs (Qualified Institutional Buyers), 35% for Retail Investors, and the Balance 15% for NIBs (Non-Institutional Investors).

Paradeep Phosphates Ltd IPO share price

The price band of the company’s upcoming IPO is declared to range between ₹39 to ₹42 per equity share

Paradeep Phosphates Ltd IPO listing

Since the IPO of Paradeep Phosphates Ltd  Ltd IPO is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

Paradeep Phosphates Ltd IPO objectives

The net proceeds of the Fresh Issue, i.e. gross proceeds of the Fresh Issue less the offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilized in the following manner:

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

Paradeep Phosphates Ltd Key Strengths

• Phosphatic fertilizers sector is the fastest growing segment in the Indian fertilizer industry.
• It’s the second largest backward integrated fertilizer manufacturing facility.
• Strategically located manufacturing facility with sizable material storage, handling and port facilities.
• Established brand name backed by an extensive sales and distribution network.
• Secure and certified manufacturing facility and infrastructure.

Paradeep Phosphates Ltd IPOP risks

• Highly dependent on the agriculture sector.
• Business is subject to seasonal variations &  is cyclical in nature.
• The fertilizer industry in India is a regulated industry.
• Approximately 50% of the revenue is derived from 3 states namely Maharashtra , Uttar Pradesh and Odisha

Conclusion

If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online Demat Account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you already have an existing account, you can  start your online trading and invest in the upcoming IPO 2023.

With a plethora of companies coming forward with their own IPOs in quick succession, you can keep a track of all the upcoming IPOs by regularly following our IPO calendar.