Paradeep Phosphates IPO: If you have missed investing money in LIC’s IPO, then another chance is coming for you. After LIC, the government is selling its entire stake in another company. In fact, the government is selling its entire stake in the fertilizer company Paradip Phosphates. Paradip Phosphates will be made public in the stock market next week. Where common investors can buy stake by bidding for shares. The public issue ie IPO of Paradip Phosphates will be open for investment on May 17. In this, investors will be able to bid till May 19. The government holds 19.55 per cent stake in Paradip Phosphates and the government is selling its entire stake.
Price band is Rs 32-42
The share price band of Paradip Phosphates has been fixed at Rs 39-42 per share. According to the Red Herring Prospectus (RHP), the bids for anchor investors will open on May 13. Paradip Phosphates IPO consists of fresh issue of Rs 1,004 crore. Promoters and other shareholders will sell 11.85 crore equity through offer for sale (OFS). As part of the OFS, the selling shareholders – Zuari Maroc Phosphates Private Limited (ZMPPL) will sell 60,18,493 equity shares and the Government of India will sell 11,24,89,000 equity shares through IPO.
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According to the upper price band, the sale of secondary shares by the promoter and the government will be Rs 497.7 crore. At present, ZMPPL holds 80.45 per cent stake in Paradip Phosphates, while the government holds 19.55%. Explain that the proceeds of the issue will be spent by the use company on a plant in Goa and also pay the debt.
This is the Book Running Lead Manager
Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers of the issue. The company’s shares will be listed on the stock exchanges BSE and NSE on May 27, 2022.
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about the company
Established in 1981, Paradip Phosphates Limited is primarily engaged in manufacturing, trading, distributing and selling various types of Complex Fertilizers like Di-Ammonium Phosphate (DAP) and NPK Fertilizer. The company reported a profit of ₹362.7 crore for the nine-month period ended December 31, 2021, as against ₹223 crore for FY21.