BHUBANESWAR: Paradeep Phosphates Limited is on its way to becoming a publicly listed company. The fertiliser manufacturer will raise up to Rs 1,255 crore fresh capital through its upcoming Initial Public Offering (IPO).
PPL president and CEO Sabaleel Nandi said the company had filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in August this year for its IPO.
“SEBI gave its approval in September and the listing is expected within three months,” he said. The company intends to utilise Rs 642 crore of its fresh capital on part financing the acquisition of the Goa facility and remaining towards repayment/prepayment of loans and general corporate purposes.
Zuari Maroc Phosphates Private limited (ZMPPL), a joint venture of Zuari Agro Chemicals limited (ZACL) and OCP Group at present holds 80.45 per cent of the equity share capital of PPL with the balance 19.55 per cent held by the Government of India.
PPL is a leader in manufacturing, trading, distribution and sales of a variety of complex fertilisers such as Di-ammonium Phosphate/nitrogen-phosphorus-potassium (DAP/ NPK) and its fertiliser are sold under brands like ‘Jai Kisaan - Navratna’ and ‘Navratna’.
The company’s manufacturing facility, located in Paradip, includes a DAP and NPK production unit, a sulphuric acid and a phosphoric acid production plant.
As on March 31 2021, the eastern region accounted for 46.2 per cent of the company’s total sales while the north, south, and western regions of the country accounted for 5.3 per cent, 22.6 per cent, and 25.9 per cent.
In a bid to increase its size, PPL had entered into a business transfer agreement (BTA) with Zuari Agro Chemicals limited (ZACL) on March 1 to purchase its fertiliser plant in Goa.
“The acquisition will help Paradeep Phosphates to access high fertiliser demand markets of Maharashtra and Karnataka. The Goa facility is engaged in manufacturing, distribution and sales of various fertiliser such as DAP, urea and several grades of NPK named Samarth (NPK-10), Sampatti (NPK-12), Soubhagya (NPK-14), Sampurna (NPK-19) and Uramphos (NPK-28),” said Nandi.