They are the third-largest private sector manufacturer of non-urea fertilizers in India and the second largest in terms of Di-Ammonium Phosphate (“DAP”) volume sales as of March 2021. They are primarily engaged in manufacturing, trading, distribution, and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (“NPK”) (namely NPK-10, NPK-12, and NP-20), Zypmite, Phosphogypsum and Hydroflorosilicic Acid (“HFSA”).
Also, they are engaged in the trading, distribution, and sales of Muriate of Potash (“MOP”), Ammonia, Speciality Plant Nutrients (“SPN”), and City compost. Their fertilizers are marketed under some of the key brand names in the market ‘Jai Kisaan – Navratna’ and ‘Navratna’.
Competitive Strengths
- Well-positioned to capture favorable Indian fertilizer industry dynamics supported by conducive government regulations
- Second largest manufacturer of Phosphatic fertilizers in India
- Driving raw material efficiency through backward integration of facilities and effective sourcing
- Secure and certified manufacturing facility and infrastructure and unutilized land available for expansion
- Strategic location of their manufacturing facility and sizeable material storage, handling, and port facilities
- Established brand name backed by an extensive sales and distribution network
- Strong parentage, experienced management team, and prominent shareholders
Paradeep Phosphates IPO – Business Strategy
- Improve their leadership position by enhancing their production capabilities and having a more diversified product portfolio
- Continue to improve cost efficiency and productivity
- Increase geographical reach in Eastern and Western India and expand distribution channels
- Improve market leadership through investment in brand building and other campaigns
- Continue to attract, retain and develop human capital
- Selectively pursue inorganic growth opportunities
Company Promoters
- Zuari Maroc Phosphates Private Limited
- Zuari Agro Chemicals Limited
- OCP S.A And The President Of India
- Acting Through The Department Of Fertilizers
- Ministry Of Chemicals And Fertilizers
- Government Of India
Company Financials
| Amount (in INR & Million) | |||
| 31-Dec-21 | 31-Mar-20 | Mar-19 | |
| Total Assets | 44,231.67 | 50,103.25 | 56,276.58 |
| *Total Revenue | 51,839.41 | 42,277.76 | 43,972.13 |
| Total Expense | 48,172.43 | 39,973.86 | 41,457.26 |
| Profit After Tax | 2,232.68 | 1,932.20 | 1,589.63 |
Object Of The Issue
- Part-financing the acquisition of the Goa Facility
- Repayment/prepayment of certain of their borrowings
- General corporate purposes
Paradeep Phosphates IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 1 | Coromandel International Limited | 19 |
| 2 | 10 | Chambal Fertilizers Chemicals Limited | 8 |
| 3 | 10 | Deepak Fertilizers and Petrochemicals Limited | 10 |
Paradeep Phosphates IPO Strengths
- Well-positioned to capture favorable Indian fertilizer industry dynamics supported by conducive government regulations.
- Second largest manufacturer of Phosphatic fertilizers in India.
- Secure and certified manufacturing facility and infrastructure and unutilised land available for expansion.
- Strategic location of the manufacturing facility and sizeable material storage, handling and port facilities.
- Established brand name backed by an extensive sales and distribution network.
Paradeep Phosphates IPO Risks
- High dependency on agriculture sector, hence any changes in the sector may have immediate effective on the business.
- Subjected to climatic conditions and is cyclical in nature thus, seasonal variations and unfavourable local and global weather patterns may have an adverse effect.
- Operates in a regulated industry, thus, changes in government policies will have an effect on the operations and profitability.
- The firm has only one manufacturing facility until the completion of the Goa Transaction.
- Historically derived a significant portion of its revenues from operations from a limited number of states.
Paradeep Phosphates IPO – Details
| IPO Opening Date | 17 May 2022 |
| IPO Closing Date | 19 May 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹ 1501.73 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹39-42 |
| Market Lot | 350 Shares ( 1 Lot ) |
| Min Order | 350 Shares |
| Listing At | BSE, NSE |
| Register | LinkInTime India Private Limited |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
Paradeep Phosphates IPO – Date Schedule
| IPO Open Date | 17 May 2022 |
| IPO Close Date | 19 May 2022 |
| Basis of Allotment Date | 24 May 2022 |
| Initiation of Refunds | 25 May 2022 |
| Credit of Shares to Demat Account | 26 May 2022 |
| IPO Listing Date | 27 May 2022 |
Paradeep Phosphates IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 350 | 14,700 |
| Maximum | 13 | 4550 | 1,91,100 |
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding |
Paradeep Phosphates IPO Prospectus
Company Contact Information
| Paradeep Phosphates Limited 5th Floor, Orissa State Handloom Weavers’ Co-Operative Building, Pandit J.N Marg, Bhubaneswar 751 001, Odisha, India Tel: +91 080 45855561 E-mail: cs.ppl@adventz.com Website: https://www.paradeepphosphates.com/ |
Paradeep Phosphates IPO Registrar
| Link Intime India Private Limited C 101, 247 Park L.B.S. Marg, Vikhroli (West), Mumbai 400 083, Maharashtra Tel: +91 22 4918 6200 E-mail: ppl.ipo@linkintime.co.in Website: www.linkintime.co.in |
Paradeep Phosphates IPO Lead Manager(s)
| 1. Axis Capital Limited 2. ICICI Securities Limited 3. JM Financial Limited 4. SBI Capital Markets Limited |
Paradeep Phosphates IPO FAQs
| When Paradeep Phosphates IPO will open? The Paradeep Phosphates IPO dates are 17 May 2022 To 19 May 2022. |
| What is the lot size of Paradeep Phosphates IPO? Paradeep Phosphates IPO lot size is 350 Shares and total amount is ₹14,700. |
| How to apply for Paradeep Phosphates IPO? You can apply in Paradeep Phosphates IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is Paradeep Phosphates IPO listing date? The Paradeep Phosphates IPO listing date is announced. The date of Paradeep Phosphates IPO listing is [27 May 2022]. |
