IPO NEWS: In the series of continuous IPOs, now the IPO of Padardeep Phosphates is also preparing to enter the primary issue. The company has filed DRHP with SEBI for its IPO. Under this IPO, new shares worth Rs 1,255 crore will be issued while existing stakeholders and promoters of the company will sell more than 12 crore equity shares. Under the offer for sale, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will sell 75.5 lakh shares while the Government of India will sell its entire stake of 11.249 crore shares. At present, ZMPPL holds 80.45 percent stake in Paradeep Phosphates and 19.55 percent of the Government of India. Zuari Agro is a wholly owned subsidiary of the Adventz group and Maroc Phosphore OCP, Morocco.
IPO funds will be used for the expansion of the company
The company will use Rs 642 crore raised through this IPO to finance Goa-based Zuari Agro Chemicals. Rs 300 crore received from the IPO will be used to reduce the company’s debt. As of 31 June 2021, the company had a debt of Rs 1,419.19 crore. Paradeep Phosphate has filed DRHP. The government is now ready to sell its entire stake in it. This is part of the government’s strategy, under which it has to sell its stake in all the companies where it is located to the minority stakeholder. Recently, due to this situation, he sold his stake in Tata Telecommunication.
How is the company’s performance
In the financial year 2019-20, Paradeep Phosphate made a profit of Rs 194 crore, while in the financial year 2018-19 its profit was Rs 159 crore. The company’s operating revenue in 2019-20 was Rs 4,192 crore. In the financial year 2018-19, this revenue was Rs 4,358 crore. There is a fall in the total income of the company. The company’s total income in the financial year 2018-19 was Rs 4,397 crore, while in 2019-20 it came down to Rs 4227 crore.
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What does the company do?
Paradeep Phosphates manufactures many types of fertilizers, among which DAP, NPK, Zypmite, Phosphogypsum and Hydrofluorosilicic Acid (HFSA) are prominent. Apart from this, the company also makes MOP, SPN and City compost. The company’s fertilizers are available in the market from Jai Kisan – Navratna and Navratna brands. The company has its unit in Paradip, Odisha.