Paradeep Phosphates Ltd., Odisha, India, will sell new shares in the initial public offering (IPO) to raise a lower-than-planned 10.04 billion rupees ($130 million), while its shareholders – including the Indian government will sell as many as 118.51 million shares, according to its red herring prospectus, cited by Bloomberg. The company filed draft papers for the IPO last fall (GM Oct. 22, 2021).
Proceeds from the sale are expected to repay debt, as well as partially finance the recent acquisition of the Goa nitrogen and NPK facility (GM Feb. 26, 2021), according to the Press Trust of India (PTI).
The shares will be sold in a range of 39-42 rupees, according to a stock exchange filing by Zuari Agro Chemicals Ltd., whose joint venture is selling shares in the IPO.
Zuari Maroc Phosphates Pvt., a jv of Zuari Agro Chemicals and OCP Group SA, owns 80.45% of Paradeep Phosphates; it will sell 6.02 million shares in Paradeep Phosphates, lower than the 7.55 million planned initially.
The Indian government, which owns the remainder in the fertilizer maker, or 19.55%, is selling about 112.5 million shares as planned. The government is selling its entire stake, according to PTI.
The IPO opens for sale May 17 and closes May 19; anchor investors can place bids on May 13.
Incorporated in 1981, Paradeep Phosphates is the second-largest maker of non-urea fertilizers among private sector companies in India, according to its prospectus. It has 1.2 million mt/y production capacity for DAP, NPK, and NP.