Paradeep Phosphates Limited has come up with an initial public offer (IPO). It will open on May 17-19, 2022 at Rs.39-42 a share. The IPO issue size is around Rs.1,502 crore. The minimum bid will be for 350 shares and in its multiples thereafter.
Overview
Paradeep Phosphates Limited was incorporated in 1981. It is the 2nd largest private sector manufacturer of non-urea fertilizers in India. It is also 2nd largest private-sector manufacturer in terms of Di-Ammonium Phosphate (“DAP”) for December 31, 2021. The company is primarily engaged in manufacturing, trading, distribution, and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (“NPK”), Zypmite, Phospho-gypsum and Hydrofluorosilicic Acid (“HFSA”). It is also engaged in the trading, distribution, and sales of Muriate of Potash (“MOP”), Ammonia, Speciality Plant Nutrients (“SPN”), and City compost. Our fertilizers are marketed under some of the key brand names in the market ‘Jai Kisaan – Navratna’ and ‘Navratna’.
The company’s manufacturing facility is located in Paradeep, Odisha, and includes a DAP and NPK production facility. It has established an extensive sales and distribution network. Its product’s distribution is across 14 states in India through 11 regional marketing offices and 468 stock points. Currently, the company has a network of 4,761 dealers and 67,150 retailers, catering to over five million farmers in India. The company sources its raw materials Phosphate Rock, Phosphoric acid, Sulphur, Ammonia, and MOP locally & from various other countries such as Morocco, Jordan, Qatar, and Saudi Arabia.
Promoters
Zuari Maroc Phosphates Private Limited
Zuari Agro Chemicals Limited
OCP (Office Chérifien des Phosphates)
President of India, GoI
Promoter Holding
Pre-Issue Shareholding – 100%
Post-Issue Shareholding –
Strength & Weakness
Strengths
Weaknesses
Favorable Indian fertilizer industry
Dependent on the agricultural sector
Experienced management team
Business is subject to climatic conditions
Driving efficiency through backward integration
Business is cyclical in nature
Secure and certified manufacturing facility
Fertiliser industry in India is a regulated
Established brand name
Dependent on a limited no. of suppliers
Extensive sales and distribution network
Negative cash flows in the past
2nd largest manufacturer of Phosphatic fertilizer
Intensely competitive industry
Competitors
Chambal Fertilisers
Deepak Fertilisers
GNFC
Rama Phosphates Ltd.
Coromandel International
Tata Chemicals
Company Financials
Year
Revenue (in Crore)
Profit (in Crore)
31-Mar-2019
4,397.21
158.96
31-Mar-2020
4,227.78
193.22
31-Mar-2021
5,183.94
223.27
31-Dec-2021
5,973.69
362.78
Object of Issue
1) Part-financing the acquisition of the Goa Facility
2) Repayment/prepayment of certain of our borrowings.
Hey! I am Shankar Awale an aspiring blogger with an obsession for all things of Finance. This blog is dedicated to help people to learn about Financial Knowledge in easy language.
Helpful information… Thank you
Thank You, Aparna. That’s A Pleasure To Hear