India’s Paradeep Phosphates Ltd. (PPL), Bhubaneswar, Odisha, has filed draft papers with capital markets regulator Sebi to raise funds through an initial public offering, according to filings cited by the Economic Times. The IPO includes equity shares worth Rs1,255 crore and an offer of up to 120,035,800 shares by existing shareholders and promoters.
Under the deal, Zuari Maroc Phosphates Pvt Ltd. (ZMPPL) will offer up to 75,46,800 shares, while the Government of India will offer 112,489,000 equity shares. ZMPPL, a joint venture of Zuari Agro Chemicals and Maroc Phosphore SA, a wholly owned subsidiary of OCP SA, holds 80.45 percent of PPL, and the Government of India owns 19.55 percent stake.
Part of the IPO proceeds will go to finance the acquisition of the Goa manufacturing facility (GM Feb. 26, p. 37). The Zuari Agro Chemicals Ltd. Board of Directors on Feb. 22 announced that it has approved the sale of the company’s nitrogen and NPK fertilizer plant at Goa and associated businesses to PPL for an agreed enterprise value of $280 million. The board approved the sale in-principle last summer (GM June 26, 2020). The Goa site has four production units comprising ammonia and urea, as well as two NPK units
PPL has 1.2 million mt/y production capacity for DAP, NPK, and NP.