Paradeep Phosphates IPO GMP, Dates & Important details 2021
Paradeep Phosphates Limited is India’s third biggest private sector producer of non-urea fertilisers and second biggest in regards of Di-Ammonium Phosphate (“DAP”) volume sales As of March 2021 (Source: CRISIL Report). Paradeep Phosphates IPO will hit the market in October 2021.
About Paradeep Phosphates Limited
DAP, three grades of Nitrogen-Phosphorus-Potassium (“NPK”) (specifically NPK-10, NPK-12, and NP-20), Zypmite, Phosphogypsum, and Hydroflorosilicic Acid (“HFSA”) are among the complex fertilisers that Paradeep Phosphates manufacture, trade, distribute, and sell.
Muriate of Potash (“MOP”), Ammonia, Specialty Plant Nutrients (“SPN”), and City compost are among the products they trade, distribute, and sell.
Their fertilisers are sold under the brand names ‘Jai Kisaan -Navratna’ and ‘Navratna’, which are well-known in the market.
Manufacturing Facility
A DAP and NPK production plant, as well as a Sulphuric acid production plant and a Phosphoric acid production plant, are all located in Paradeep, Odisha.
For the production of DAP and NPK, they use sulphuric and phosphoric acids. Their integrated business strategy, they feel, has been crucial to their success and a differentiating from their competition.
Their integrated business strategy enables them to increase profitability, improve capital efficiency, and maintain a competitive edge.
Footprints & Raw Materials
With a significant presence in the eastern portion of India, they have built a large sales and distribution network. Their solutions are distributed throughout 17 Indian states through a network of 11 local marketing offices and 1,324 stock locations.
As of March 2021, their network comprises 4,529 dealers and over 60,257 merchants, serving over 5 million farmers in India. Phosphate Rock, Phosphoric Acid, Sulphur, Ammonia, and MOP are among their major raw ingredients.
They get our raw materials both locally and from other nations including Morocco, Jordan, Qatar, and Saudi Arabia.
They have long-term supply agreements for numerous of major raw materials, including phosphate rock, ammonia, and sulphur.
Paradeep Phosphates IPO
Paradeep Phosphates Limited, headquartered in Bhubaneswar has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 1255 crores value equity share & 120,035,800 equity share on 12 August 2021.
The Offer includes 1255 crores value fresh equity shares and There is an offer for sell(OFS) of 120,035,800 equity shares by the promoters mentioned in the DRHP.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are some of the basic criteria that contribute into determining the Offer Price:
- Well-positioned to take advantage of favourable fertiliser sector dynamics in India, which are aided by favourable government regulations.
- India’s second-largest producer of Phosphatic fertilisers.
- Backward integration of plants and smart sourcing are driving raw material utilization.
- Unused land and a safe and accredited production facility and infrastructure are ready for growth.
- Their production plant is at a strategic position, with ample material storage, handling, and port services.
- A well-known brand name with a large sales and distribution network.
- Strong parentage, a seasoned management team, and well-known stockholders.
Originally published at https://profitmust.com on August 16, 2021.
