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Paradeep Phosphates IPO to open on May 17; govt to sell its entire stake

New Delhi: Fertiliser company Paradeep Phosphates Ltd will come out with its initial public offering on May 17 and the price band has been fixed at Rs 39-42 per share. Through the Initial Public Offering (IPO), which will conclude on May 19, the government will be offloadng its entire 19.55 per cent stake in the company.

The bidding for anchor investors will open on May 13, according to the Red Herring Prospectus (RHP).

The initial share sale comprises fresh issuance of equity shares worth Rs 1,004 crore and an offer for sale component of 11.85 crore equity shares by promoters and other selling shareholder.

As part of the OFS, selling shareholders —

Maroc Phosphates Pvt Ltd (ZMPPL) will offload 60,18,493 equity shares and Government of India will sell up to 11,24,89,000 equity shares.

At present, ZMPPL owns 80.45 per cent shareholding in Paradeep Phosphates while the government has 19.55 per cent stake.

The firm intends to utilise the proceeds from the fresh issue towards part-financing the acquisition of a Goa facility and repayment and pre-payment of certain of its borrowings.

Incorporated in 1981, Paradeep Phosphates Ltd is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilisers such as Di-Ammonium Phosphate (DAP) and NPK fertilisers.

For the nine months ended December 31 2021, the company reported a profit of Rs 362.78 crore on revenue of Rs 5,973.68 crore.

, , and Capital Markets are the book running lead managers to the issue.

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