Fertiliser company Paradeep Phosphates Ltd (PPL) has announced a Rs 1,502 crore IPO, with a price band of Rs 39-42 apiece.
The public issue will open for subscription on May 17 and close on May 19. The anchor investor bids will open on May 13.
The IPO consists of a fresh issue of shares worth Rs 1,004 crore and an offer-for-sale of up to 11.85 crore shares by existing shareholders and promoters exists.
Paradeep Phosphates is a joint venture between the Indian Government and Zuari Maroc Phosphates Private,
(ZMPPL, which is a 50:50 partnership between Maroc Phosphore S.A., Morocco and Zuari Agro Chemicals).
The Government of India holds 19.55 percent shares in the company while 80.45 percent shares are held by Zuari Maroc Phosphates.
As part of the offer-for-sale, the shareholders, Zuari Maroc Phosphates Pvt Ltd.
ZMPPL will offload 60.18 lakh equity shares and Government of India will sell up to 11.24 crore equity shares, Financial Express reported.
The bid lot for the IPO is 350 equity shares and in multiples of 350 equity shares thereafter.
Up to 50 percent of the net offer will be reserved for Qualified Institutional Buyers (QIBs),
15 percent will be reserved for Non-Institutional Investors (NIIs) and the remaining 35 percent will be available to retail investors.
The company's shares are expected to be listed on the BSE and National Stock Exchange (NSE) on May 27.
Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers and Link Intime India Private Ltd will be the registrar to the issue.
PPL manufactures, trades, distributes and sells a variety of complex fertilisers like di-ammonium phosphate (DAP) and NPK fertilisers.
The fertiliser products are marketed under brands like 'Jai Kisaan Navratna' and 'Navratna'.
The company’s manufacturing facility is in Paradeep, Odisha which includes a DAP and NPK production facility, a Sulphuric acid production plant and a Phosphoric acid production plant.
The plant also has three operational concentrators to concentrate weak Phosphoric acid into a strong version.
The company aims to use the IPO proceeds for part-financing of its acquisition of the Goa facility, repayment/pre-payment of certain borrowings and for general corporate purpose.