Paradeep Phosphates Receives SEBI Approval For IPO

Fertiliser maker Paradeep Phosphates Ltd. received the market regulator's approval for an initial public offering, joining an IPO rush in what is expected to be a record year for maiden offers.

The Securities and Exchange Board of India on Sept. 22 issued an observation letter on the company’s preliminary IPO papers filed in August, according to an update on SEBI's website. An observation is equivalent to an approval for an IPO.

Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers to the issue.

India is on track for a record IPO year as companies tap markets when the equity benchmarks are scaling new highs.

Paradeep Phosphates' maiden offer comprises a fresh issue of equity shares worth Rs 1,255 crore and an offer for sale of up to 12 crore shares by existing shareholders and promoters, according to the draft red herring prospectus.

The Government of India, owner of 19.55% stake, will sell up to 11.24 crore equity shares under offer for sale. Zuari Maroc Phosphates Pvt., which holds up to 80.45%, will sell up to 75.46 lakh equity shares.

The net proceeds from the fresh issue will be used to partly finance the acquisition of a fertiliser facility in Goa, repayment of debt and general corporate purposes, according to the draft prospectus.

Paradeep Phosphates makes and distributes a variety of complex fertilisers such as diammonium phosphate, three grades of nitrogen-phosphorus-potassium, zypmite, phosphogypsum and hydroflorosilicic acid.

Its fertilisers are marketed under brands including Navratna and Jai Kisaan-Navratna.