Odisha-based fertiliser company Paradeep Phosphates on Friday filed a draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (Sebi) to float an initial public offer (IPO).
CNBC-TV18 had reported on Friday that the company would file its DRHP this week.
The company is involved in the production and marketing of complex phosphatic fertilisers. It is a joint venture between Adventz Group Company, Zuari Agro and Maroc Phosphates, which is a wholly-owned subsidiary of Morocco's OCP.
The proposed IPO of Paradeep Phosphates is estimated at Rs 2,205 crore and is a combination of fresh and existing shares. The public offer comprises fresh issuance of shares worth Rs 1,255 crore, and an offer for sale (OFS) of shares worth Rs 950 crore by existing shareholders, according to the DRHP.
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Existing shareholders Zuari Maroc Phos and government of India will be participating in the OFS. Government of India, which owns a stake of about 19.5 percent in Paradeep Phosphate, is expected to raise around Rs 800 crore through the OFS. Zuari Agro is expected to raise about Rs 50-75 crore.
Proceeds from the IPO will be utilised by the company to part finance the acquisition of a Goa fertilizer plant from Zuari Agro Chemicals, and towards the repayment or prepayment of borrowings.
Financials
Paradeep Phosphates' profit grew 16 percent and revenue 23 percent in the financial year ended March 2021. The company saw positive cash flow of Rs 87 crore after witnessing negative cash flow in the past two years.
Borrowings came down 45 percent in the previous financial year, its profit rose 21 percent over revenue growth of 8 percent, while its borrowings declined 36 percent.
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The company has highlighted the following among its strengths:
The company has also mentioned the following risk factors:
(Edited by : Jomy Jos Pullokaran)
First Published: Aug 14, 2021 3:48 PM IST
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