Paradeep Phosphates Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Paradeep Phosph.

CMP

84.84

-0.40 (-0.47%)

  • DRHP
₹42

Offer Price

₹ 1,501.73 Cr

Issue Size

₹ 14,700

Min Investment

0.83x

Times Subscribed

350

Lot size

Time Line

  • 17
    May 2022
    Open
  • 19
    May 2022
    Close
  • 24
    May 2022
    Finalisation of Basis of Allotment
  • 25
    May 2022
    Initiation of Refunds
  • 26
    May 2022
    Transfer of Shares to Demat Account
  • 27
    May 2022
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Improve its leadership position by enhancing its production capabilities and having a more diversified product portfolio

  • Continue to improve cost efficiency and productivity

  • Increase geographical reach in Eastern and Western India and expand distribution channels

  • Improve market leadership through investment in brand building and other campaigns

  • Continue to attract, retain and develop human capital

Products & Services

  • The Company is primarily engaged in manufacturing, distribution, trading and sales of a variety of complex fertilizers such as DAP, several grades of NPK, Zypmite and its by-product, Phospho-gypsum and HFSA.

  • The Company is also engaged in distribution, trading and sales of MOP, Ammonia, City compost and P2O5-HSS.

Strengths

  • Well-positioned to capture favorable Indian fertilizer industry dynamics supported by conducive government regulations

  • Second largest private sector manufacturer of Phosphatic fertilizers in India with a focus on the non-urea segment, in terms of phosphatic fertilizer (DAP and NPK complexes) capacity as of March 31, 2022

  • Driving raw material efficiency through backward integration of facilities and effective sourcing

  • Secure and certified manufacturing facility and infrastructure and unutilised land available for expansion

  • Strategic location of its manufacturing facility and sizeable material storage, handling and port facilities

Risks

  • Its business is dependent on the performance of the agricultural sector in which its fertilizers are used. Any developments affecting the performance of the agricultural sector are likely to affect its business, results of operations and financial condition.

  • Its business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on its business, results of operations and financial condition.

  • The fertilizer industry in India is a regulated industry. Any change in Government policies towards the agriculture sector or a reduction in subsidies and incentives provided to farmers could adversely affect its business and results of operations.

  • The company has only one manufacturing facility until the completion of the Goa Transaction. Unplanned slowdowns or shutdowns in its manufacturing facility or underutilization of its manufacturing capacities could have an adverse effect on its business, results of operations and financial condition.

  • The extent to which the coronavirus disease (COVID-19) affects its business, results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted.

Company Promoters

Promoters Holding

Issue For IPO
100.00%
Pre Holding

100.00%

Post Holding

-

Top Promoters Holding

Financials

All values in Cr

Mar-2021 Mar-2023 Mar-2021 3-Yr trend
Revenue 5,164.73 (23.20%) 13,340.72 (158.30%) 12.22 (-)
Gross Profit 5,164.73 (23.20%) 13,340.72 (158.30%) 12.22 (-)
Net Income 5,164.73 (23.20%) 13,340.72 (158.30%) 12.22 (-)
Assets 5,164.73 (23.20%) 13,340.72 (158.30%) 12.22 (-)
Liabilities 5,164.73 (23.20%) 13,340.72 (158.30%) 12.22 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Paradeep Phosphates Ltd 5,164.73 223.27 3,098.53 1,271.02 12.22 387.99 3,175.79 2.08 0.40
Coromandel International Ltd 14,181.95 1,329.15 8,895.66 8,895.66 25.80 45.22 175.55 14.94 0.00
Chambal Fertilisers & Chemicals Ltd 12,719.01 1,654.76 10,246.69 10,246.69 31.52 39.76 125.80 16.14 0.73
Deepak Fertilizers & Petrochemicals Corp Ltd 5,808.49 400.31 7,143.22 7,143.22 14.81 39.20 272.65 5.60 0.87

Book Running Managers

  • ICICI Securities Ltd
  • JM Financial Ltd
  • SBI Capital Markets Ltd
  • Axis Capital Ltd

Registrar & Transfer Agent

Link Intime India Pvt Ltd

C-101 247 Park,
L B S Marg,
Vikhroli West - Mumbai-400083
Phone : 91-22-49186000 Fax: 91-22-49186060

Company Contact Information

5th Flr Orissa State Handloom,
Pandit Jawaharlal Nehru Marg,
Bhubaneswar - 751001
Phone : 91-674-2393931 (10 lines) Email : cs.ppl@adventz.com www.paradeepphosphates.com

Offer Related Information

Initial public offer of 357,555,112* equity shares of face value of Rs. 10 each (the "Equity Shares") of Paradeep Phosphates Limited (the "Company" or the "Issuer") for cash at a price of Rs. 42 per equity share (including a share premium of Rs. 32 per equity share) (the "Offer Price") aggregating to Rs. 1501.73 crores comprising a fresh issue of 239,047,619* equity shares aggregating to Rs. 1004.00 crores (the "Fresh Issue") and an offer for sale of 118,507,493* equity shares aggregating to... More

News

  • 20 May 2022, 09:55 AM

    Paradeep Phosphates IPO ends with decent subscription

  • 19 May 2022, 17:23 PM

    Paradeep Phosphates IPO subscribed 1.75 times

  • 18 May 2022, 17:34 PM

    Paradeep Phosphates IPO subscribed 51%

  • 17 May 2022, 17:42 PM

    Paradeep Phosphates IPO subscribed 29%

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