Odisha’s Paradeep Phosphates Gets Sebi’s Clearance To Float IPO

New Delhi: Leading fertilizer company Paradeep Phosphates has received the go-ahead from Securities and Exchange Board of India (Sebi) to mop up funds through an initial public offering (IPO).

The IPO comprises fresh issue of equity shares worth Rs 1,255 crore and an offer for sale (OFS) of up to 12,00,35,800 shares by its existing shareholders and promoters.

Under the OFS, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will offer up to 75,46,800 shares, while up to 11,24,89,000 equity shares will be offered by Government of India.

Paradeep Phosphates, which had filed preliminary IPO papers in August, obtained Sebi’s observations on September 22.

Issuance of observations implies Sebi’s go-ahead to float IPO.

Currently, ZMPPL holds 80.45% and Government of India owns 19.55% stake in the company.

Proceeds from fresh issue will be used to finance acquisition of the fertilizer manufacturing facility in Goa, for payment of debt and general corporate purposes.

Paradeep Phosphates is engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers like di-ammonium phosphate (DAP) and NPK fertilizers.

Lead managers of IPO issue are Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets.