Home >Markets >Ipo >Paradeep Phosphates IPO gets SEBI's nod. Details here 
Listen to this article

Leading fertilizer company Paradeep Phosphates has received market regulator Securities and Exchange Board of India (Sebi) approval to raise funds through an initial public offering (IPO). 

The initial share sale will comprise a fresh issue of equity shares worth 1,255 crore and an offer for sale (OFS) of up to 12,00,35,800 shares by its existing shareholders and promoters, according to the draft red herring prospectus (DRHP). 

Paradeep Phosphates Ltd (PPL), is part of Adventz Group of Companies led by the group Chairman Saroj Kumar Poddar. Its a subsidiary of Zuari Maroc Phosphates Private Limited (ZMPPL), a joint venture between the Adventz group company, Zuari Agro Chemicals Limited, and Maroc Phosphore S.A., a wholly owned subsidiary of OCP, Morocco (Office Cherifien des Phosphates). 

Under the OFS, its promoter, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will offer up to 75,46,800 shares whereas Government of India will offer up to 11,24,89,000 equity shares. The Government of India holds 19.55% of shares while 80.45% shares are held by Zuari Maroc Phosphates Pvt Ltd.

Proceeds of fresh issue will be used to partly finance the acquisition of the fertiliser manufacturing facility in Goa, for payment of debt and general corporate purposes. Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the lead managers to the issue.

Paradeep Phosphates, which filed preliminary IPO papers with the regulator in August, obtained its observations on September 22, an update with the Securities and Exchange Board of India (Sebi) showed on Monday, as reported by news agency PTI. In Sebi parlance, issuance of observations implies its go-ahead to float IPO.

PPL's primary focus is the production and marketing of complex phosphatic fertilizers. 

(With inputs from PTI)

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout