Paradeep Phosphates Limited IPO - Details

The company received a nod from SEBI (Securities and Exchange Board of India) to mop up funds with the help of an initial public offering (IPO). This public issue comprises a fresh issuance of equity shares amounting to Rs. 1,255 crores. In addition, the offer for sale (OFS) consists of 12,00,35,800 shares presented by the company promoters and shareholders.

One of its promoters, Zuari Maroc Phosphates Pvt. Ltd., is offering up to Rs. 75,46,800 under this offer for sale (OFS). At the same time, the Government of India will offload around 11,24,89,000 shares. This gives a holding percentage of 19.55% to the Government of India whereas 80.45% to Zuari Maroc Phosphates Pvt. Ltd. To find more details on Paradeep Phosphates Limited IPO, refer to the table below:

Issue Type

Book Built Issue IPO

Listing at

BSE and NSE

IPO Price Band

Rs 39-42 a share

Face Value

Rs. 10

per equity share

Market Lot

350 Shares

Minimum Order Quantity

350 Shares

Issue Type

Book Built Issue IPO

Listing at

BSE and NSE

IPO Price Band

Rs 39-42 a share

Face Value

Rs. 10

per equity share

Market Lot

350 Shares

Minimum Order Quantity

350 Shares

Listing at NSE, BSE

Important Dates for Paradeep Phosphates Limited IPO

Individuals interested in participating in this upcoming IPO of Paradeep Phosphates Limited must look out for important dates mentioned below:

IPO opens on May 17, 2022
IPO closes on May 19, 2022
Basis of Allotment publication date May 24, 2022
Credit of shares to Demat Account May 26, 2022
Initiation of Refund May 25, 2022
IPO listing May 27, 2022

View all upcoming IPOs

Paradeep Phosphates IPO Latest News and Subscription Status Today [Live]

At 05:10:00 PM.
  • This IPO has been subscribed 1.75x by 05:10 PM. on Day 3
  • It is a public issue of 26,86,76,858 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 3.01x
  • (NII) Non-institutional buyers: 0.82x
  • (RII) Retail Individual buyers: 1.37x
At 11:18:00 AM.
  • This IPO has been subscribed 0.57x by 11:18 AM. on Day 3
  • It is a public issue of 26,86,76,858 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.25x
  • (RII) Retail Individual buyers: 1.05x
At 05:15:00 PM.
  • This IPO has been subscribed 0.51x by 05:15 PM. on Day 2
  • It is a public issue of 26,86,76,858 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.20x
  • (RII) Retail Individual buyers: 0.95x
At 11:55:00 AM.
  • This IPO has been subscribed 0.38x by 11:55 AM. on Day 2
  • It is a public issue of 26,86,76,858 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.10x
  • (RII) Retail Individual buyers: 0.74x
At 05:10:00 PM.
  • This IPO has been subscribed 0.29x by 5:10 PM. on Day 1
  • It is a public issue of 26,86,76,858 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.06x
  • (RII) Retail Individual buyers: 0.57x
At 11:10:00 AM.
  • This IPO has been subscribed 0.13x by 11:10 AM. on Day 1
  • It is a public issue of 26,86,76,858 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.01x
  • (RII) Retail Individual buyers: 0.26x

About Paradeep Phosphates Limited

Paradeep Phosphates Limited is a leading fertiliser company in India engaged in trading, sales, manufacturing, and distribution of complex fertilisers like DAP. Apart from this, the company also deals in trading and distribution of Muriate of Potash (MOP), City Compost, Speciality Plant Nutrients, Ammonia, etc. Further, it markets these products using top brand names such as ‘Jai Kisaan-Navratna’ or ‘Navratna.’ 

Founded in 1981, Paradeep Phosphates is committed to improving the production of agricultural products and providing benefits to farmer committees. For this purpose, the company also imports raw materials like rock phosphates, phosphoric acid, ammonia, and others from Tunisia, Morocco, Gulf of Countries, Indonesia, Saudia Arabia, Jordan, and CIS Countries. With SEBI’s approval, Paradeep Phosphates is ready to float its initial public offering.

Objectives of Paradeep Phosphates Limited IPO

Paradeep Phosphates plans to use the proceeds from this public issue for the following purposes:

  • For repayment of company debt

  • To fund the acquisition of a fertiliser manufacturing centre in Goa

  • For general corporate purposes

Why Should I Invest in Paradeep Phosphates Limited IPO?

For individuals who are wondering whether to invest in Paradeep Phosphates Limited IPO or not, the following are the strong points to focus on:

  • After the company successfully acquires the Goa manufacturing facility, its production capacity will boost by 1.2 million MT.
  • Paradeep Phosphates Limited has its reach spread across 17 states. This includes a network of 60,257 retailers and 4,529 dealers providing service to around five million farmers all over the country. 
  • This company is the second-largest producer of DAP or Di-Ammonium Phosphate. Also, it is the third-largest private sector manufacturer of non-urea fertilisers in India. 
  • Paradeep Phosphates Limited has a proven track record of creating an annual turnover of Rs. 5,000 crores. 
  • The company has an integrated business model that helps increase profitability, gives it a competitive edge and improves capital efficiency. 

Financial Highlights

The DRHP that Paradeep Phosphates has issued to market regulator SEBI mentions the financial highlights of the company for the last three years. To find the details look at the following table:

Financial Year Total Assets in Millions Total Income in Millions Profit After Tax in Millions
FY 2021 Rs. 44,231.67 Rs. 51,839.41 Rs. 2,232.68
FY 2020 Rs. 50,103.25 Rs. 42,277.76 Rs. 1,932.20
FY 2019 Rs. 56,276.58 Rs. 43,972.13 Rs. 1,589.63

How to Apply for Paradeep Phosphates Limited IPO?

There are two methods that a first-time investor can follow for experiencing an effortless trading process. They include:

UPI

  • Link your bank account to a UPI ID.

  • Register your UPI id with your Demat account.

  • Subscribe for Paradeep Phosphates IPO and approve the payment on your UPI ID.

Demat Account

Paradeep Phosphates Limited IPO – Noteworthy Highlights

Here we have noted down the essential highlights of Paradeep Phosphates. All interested investors must keep them in mind before making their final call:

  • The company has been awarded multiple times for its sustainability measures, corporate leadership and excellence.
  • Paradeep Phosphates Limited IPO maintains a recognition for carrying outstanding leadership in the Chemical and Fertiliser Sector in India.
  • The company also actively addresses environmental issues, improves its production process, and carries out human resources practices.
  • It keeps a close view on maintaining the quality of the company. For this purpose, Paradeep Phosphates Limited sends all of its finished products for a rigorous testing process.

Paradeep Phosphates Limited IPO SWOT Analysis

Strength

    • Paradeep Phosphates Limited is the second-largest manufacturer of phosphatic fertiliser in the country.

    • The company has statistically located its manufacturing facility and sizeable material storage for easy handling and accessing port facilities.

    • Paradeep Phosphates holds a respectable position in exercising favourable Indian fertiliser dynamics provided under conducive government regulations.

    • The company has a highly certified facility and secured infrastructure.

    • Paradeep Phosphates Limited has an established brand name in the sales and distribution network of fertilisers.

    • It has an experienced management team, strong parentage and well-reputed shareholders.

Weakness

    • The company is primarily engaged in the agricultural sector, so any change here may directly affect the operation of the business.

    • Till now, Paradeep Phosphates Limited holds only one manufacturing unit.

    • It generates a significant portion of its revenue from a limited portion of India.

Opportunity

    • The company has unutilised land that it can use for future expansion. 

    • After establishing a new manufacturing unit in Goa, Paradeep Phosphates Limited plans to improve its production capacity by 1.2 million MT. 

Threats

    • The operations of the business depend on climatic conditions. Since seasons are cyclical in nature, unfavourable weather patterns directly impact company profit.

    • Paradeep Phosphates follows regulations led down by the government. So, any change in policy can directly impact the operations and profit margin of this company.

Competitive Analysis: Market Peers of Paradeep Phosphates

Here are the top market competitors of Paradeep Phosphates, along with their market capitalisation and percentage of PAT growth.

Company Name

Market Capitalisation

PAT Growth %

Coromandel International Limited

Rs. 24,672.78 crores

53.31%

Deepak Fertilisers & Petrochemicals Corporation Ltd.

Rs. 8,158.11 crores

29.40%

Incitec Pivot Ltd.

Rs. 776.89 crores

54%

Tata Chemicals Limited

Rs. 24,888.41 crores

92.68%

Frequently Asked Question

Who are the lead managers of the Paradeep Phosphates Limited IPO?

JM Financial, ICICI Securities, SBI Capital markets, and Axis Capital are the leading managers of this initial public offering (IPO). 

When did Paradeep Phosphates Limited register its DRHP with SEBI?

Paradeep Phosphates Limited filed its draft papers with the market regulator SEBI in August 2021. 

What is the PAT margin % of Paradeep Phosphates Limited?

The PAT margin % of Paradeep Phosphates amounts to 4.63%.

Who are the promoters of Paradeep Phosphates Limited IPO?

Following is the list of company promoters of Paradeep Phosphates Limited:

  • Zuari Maroc Phosphates Private Limited

  • OPS SA and the President of India

  • Zuari Agro Chemical Limited

  • Acting Through the Department of Fertilisers

  • Government of India

  • Ministry of Chemicals and fertilisers

Who is the registrar of this Paradeep Phosphates Limited IPO?

Link Intime India Private Limited is the registrar of this Paradeep Phosphates Limited IPO.

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