Paradeep Phosphates Ltd, backed by Zuari Agro Chemicals, has set Rs 39-42 per share for its IPO. The IPO will open for subscription on May 17 and close on May 19. Anchor investor bidding will begin on May 13. The company plans to raise around Rs 1,502 crore in the higher price range. The company plans to go public on May 27. The IPO included a fresh issue of Rs 1,004 crore, while its existing shareholders and promoters offered to sell up to 118.51 million shares.

The OFS includes 6.02 million shares held by Zuari Maroc Phosphates Pvt Ltd (ZMPPL), a joint venture between Zuari Agro Chemicals and OCP Group SA, and up to 112.49 million shares held by the government. ZMPPL holds an 80.45 per cent stake, while the government holds about 19.55 per cent of the company.

Axis Capital, ICICI Securities, JM Financials and SBI Capital are the lead managers for the offering. Proceeds from the issue worth Rs 5.2 crore will be used to finance the acquisition of Zuari Agro Chemicals Ltd’s Goa plant. The consideration for purchasing the facility has been identified at Rs 578.54 crore.

As of March 31, 2021, the Goa plant has a total annual fertilizer production capacity of 1.2 million tons/year, including 400,000 tons/year of urea and 800,000 tons/year of phosphate. In addition, the plant produces about 230,000 tons of ammonia gas per year, which is mainly used for the production of urea. The Goa factory also has its power plant, railway siding, infrastructure to store raw materials and finished products, and a bagging plant.

The company also plans to use Rs 300 crore to pay down debt. Its total borrowings stood at Rs 2,957.01 crore as of March 31, 2022. In FY21, the company reported revenue of Rs 5,164.73 crore compared to Rs 4,192.87 crore a year ago. Net profit for the period was Rs 2,232.7 crore compared to Rs 1,932.22 crore in the previous year.

PPL is a leader in manufacturing, trading, distributing, and selling various compound fertilizers such as Diammonium Phosphate/Nitrogen Phosphorus Potassium (DAP/NPK) under the names ‘Jai Kisaan – Navratna’ and ‘Navratna’.