1 min read.Updated: 13 May 2022, 11:53 AM ISTLivemint
Paradeep Phosphates IPO comprises fresh issuance of equity shares worth ₹1,004 crore and OFS of 11.85 crore equity shares
Listen to this article
Paradeep Phosphates Limited will open its three-day initial public offering (IPO) next week on Tuesday, May 17, 2022. The anchor investor bid period will open one working day prior to the issue, that is, Monday, May 13, 2022. The fertiliser company has fixed the price band at ₹39-42 per share.
The price band of the offer has been fixed at ₹39-42 per equity share of face of ₹10 each. Bids can be made for a minimum of 350 equity shares and in multiples of 350 thereafter
The issue comprises fresh issue of equity shares face value 10 each share aggregating to ₹1,004 crore and offer for sale up to 118,507,493 equity shares by Promoter and existing shareholders
The OFS comprises of up to 6,018,493 equity shares by Zuari Maroc Phosphates Private Limited (ZMPPL) and up to 112,489,000 equity shares by The President of India, acting through the Ministry of Chemicals and Fertilizers, Government of India
Government will be offloading its entire 19.55% stake in the company through the issue which will close on May 19.
At the upper end of the price band, the secondary share sale by the promoter and government will be worth ₹497.7 crore.
At present, ZMPPL owns 80.45% shareholding in Paradeep Phosphates while the government has 19.55% stake.
The company intends to utilise net proceeds from fresh issue towards part-financing the acquisition of the Goa Facility, repayment/prepayment of certain of our borrowings; and general corporate purposes
Incorporated in 1981, Paradeep Phosphates Ltd is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilisers such as Di-Ammonium Phosphate (DAP) and NPK fertilisers.
Axis Capital Limited, ICICI Securities Limited, JM Financial Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the Offer
The company's shares are expected to list on stock exchanges on May 27, 2022.