Paradeep Phosphates Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Paradeep Phosphates Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹42
Per ShareLot Size
350 Shares
Minimum Investment
₹14,700
Issue Size
₹1,466.18 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Paradeep Phosphates Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Issue Type
Book Building
ISIN
INE088F01024
About the Company
Paradeep Phosphates Limited is the second largest private sector manufacturers of non-urea fertilizers in India and the second largest in private sector manufacturer terms of DAP volume sales for the nine months ended December 31, 2021. It is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, three grades of NPK, Zypmite, Phospho-gypsum and HFSA. Its fertilizers are marketed under some of the key brand names in the market ai Kisaan - Navratna' and Navratna'. The Company was incorporated in 1981. ZMPPL, a joint venture of ZACL and OCP, currently holds 80.45% of the equity share capital of the Company, with the balance being held by the GoI.
Industry Overview
Fertilisers are composed of the following basic nutrients: the primary nutrients are nitrogen, phosphorous and potassium, which are required in large quantities and are normally supplied through chemical fertilizers; secondary nutrients and micronutrients. In addition, operations in the fertilizer industry are capital intensive due to high costs of land acquisition, construction of manufacturing facilities and high costs of equipment and machinery. Due to certain factors such as increase in crop intensity, increase in per capita food consumption and dietary changes, per capita rise in income and ease of credit availability and high subsidy support from the Government The Company expects to continue witnessing growth in the Indian fertilizer industry.
Company History
The Company was initially incorporated as "Paradeep Phosphates Limited" a private limited company, in Odisha, under the Companies Act, 1956, pursuant to a certificate of incorporation dated December 24, 1981, granted by the Registrar of Companies, Odisha at Cuttack. The Company was granted an exemption under Section 620 of the Companies Act, 1956 from using the term rivate' as part of its name. The Company was thereafter converted to a public company pursuant to a special resolution passed by its Shareholders on April 29, 2002.
Products & Services
- The Company is primarily engaged in manufacturing, distribution, trading and sales of a variety of complex fertilizers such as DAP, several grades of NPK, Zypmite and its by-product, Phospho-gypsum and HFSA.
- The Company is also engaged in distribution, trading and sales of MOP, Ammonia, City compost and P2O5-HSS.
Growth Strategy
- Improve its leadership position by enhancing its production capabilities and having a more diversified product portfolio
- Continue to improve cost efficiency and productivity
- Increase geographical reach in Eastern and Western India and expand distribution channels
- Improve market leadership through investment in brand building and other campaigns
- Continue to attract, retain and develop human capital
- Selectively pursue inorganic growth opportunities
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 357,555,112* equity shares of face value of Rs. 10 each (the "Equity Shares") of Paradeep Phosphates Limited (the "Company" or the "Issuer") for cash at a price of Rs. 42 per equity share (including a share premium of Rs. 32 per equity share) (the "Offer Price") aggregating to Rs. 1501.73 crores comprising a fresh issue of 239,047,619* equity shares aggregating to Rs. 1004.00 crores (the "Fresh Issue") and an offer for sale of 118,507,493* equity shares aggregating to Rs. 497.73 crores comprising 6,018,493* equity shares aggregating to Rs. 25.28 crores by Zuari Maroc Phosphates Private Limited ("Zmppl") and 112,489,000* equity shares aggregating to Rs. 472.45 crores by the president of india, acting through the ministry of chemicals and fertilizers, government of india (the "GOI" and together with zmppl, the "Selling Shareholders" and such equity shares offered by the selling shareholders, the "Offered Shares") (such offer for sale by the selling shareholders, the "Offer for Sale" and together with the fresh issue, "The Offer"). The face value of the equity shares is Rs. 10. The offer price is 4.2 times the face value of the equity shares. The offer shall constitute 43.90%of the post-offer paid up equity share capital of the company. *Subject to finalization of the basis of allotment Offer price: Rs.42 per equity share of fac value of Rs.10 each. The Offer Price is 4.2 times the face value of the equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Well-positioned to capture favorable Indian fertilizer industry dynamics supported by conducive government regulations
- Second largest private sector manufacturer of Phosphatic fertilizers in India with a focus on the non-urea segment, in terms of phosphatic fertilizer (DAP and NPK complexes) capacity as of March 31, 2022
- 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
- Strategic location of its manufacturing facility and sizeable material storage, handling and port facilities
- Its business is dependent on the performance of the agricultural sector in which its fertilizers are used. Any developments affecting the performance of the agricultural sector are likely to affect its business, results of operations and financial condition.
- Its business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on its business, results of operations and financial condition.
- The fertilizer industry in India is a regulated industry. Any change in Government policies towards the agriculture sector or a reduction in subsidies and incentives provided to farmers could adversely affect its business and results of operations.
- The company has only one manufacturing facility until the completion of the Goa Transaction. Unplanned slowdowns or shutdowns in its manufacturing facility or underutilization of its manufacturing capacities could have an adverse effect on its business, results of operations and financial condition.
- The extent to which the coronavirus disease (COVID-19) affects its business, results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted.