The initial share sale comprises fresh issuance of equity shares worth ₹1,004 crore and an offer for sale (OFS) component of 11.85 crore equity shares by promoters and other selling shareholder.
As part of the OFS, selling shareholders, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will offload 60,18,493 equity shares and Government of India will sell up to 11,24,89,000 equity shares via the IPO.
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 proceeds from the fresh issue of shares will be used by the company to part-finance the acquisition of a Goa facility and repayment of certain borrowings.
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. The company reported a profit of ₹362.7 crore in the nine month period ending 31 December 2021, while profit for fiscal 2021 stood at ₹223 crore.
Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers to the issue. The company's shares are expected to list on stock exchanges BSE and NSE on May 27, 2022.
