Paradeep Phosphates Limited IPO Details

Company Overview

Established in 1981, Paradeep Phosphates Limited is an Indian manufacturer of non-urea fertilizers. The company manufactures, trades, distributes and sells a wide range of complex fertilizers, including DAP, three grades of Nitrogen-Phosphorus-Potassium (NPK-10, NPK-12, and NP-20), Zypmite, Phospho-gypsum, and Hydroflorosilicic Acid.

In terms of volume sales for the nine months ending December 31, 2021, Paradeep Phosphates Limited was the second-largest private-sector maker of non-urea fertilizers and Di-Ammonium Phosphate (DAP). The fertilizers produced by the company are marketed under the brand names Jai Kisaan-Navratna and Navratna.

Geographical Presence

Paradeep Phosphates Limited's manufacturing facility is located in the Paradeep in Odisha. It includes DAP and NPK production facility, a Sulphuric acid production plant, and a Phosphoric acid production plant. The facility can hold up to 120,000 MT of Phosphate Rock, 65,000 MT of Phosphoric acid, 55,000 MT of Sulphur, and 35,000 MT of MOP.

The corporation built an extensive sales and distribution network with a strong presence in eastern India. As of March 31, 2022, Paradeep Phosphates supplied products in 14 Indian states with an 11-regional marketing office network and 468 stock locations.

Paradeep Phosphates Limited has a presence in 17 states. This includes a network of 60,257 shops and 4,529 dealers who serve almost five million farmers across the country. The company's network has 4,761 dealers and over 67,150 retailers serving over five million farmers in India as of March 31, 2022.

Objectives of IPO

The proceeds from the issue will be utilized by Paradeep Phosphates in following manner:

• Repayment/ Prepayment the company's debt

• To finance the Capex requirement of it’s production facility in Goa.

• For general corporate functions

Paradeep Phosphates Limited - Financial Summary (Consolidated)

Paradeep Phosphates Limited IPO Pros

• After successfully acquiring the Goa manufacturing facility, the company's output capacity will increase by 1.2 million MT.

• The company is the world's second-largest manufacturer of DAP (Di-Ammonium Phosphate). It is also India's third-largest private sector producer of non-urea fertilizers.

• Phosphates Limited has a track record of generating an annual revenue of Rs. 5,000 crores.

• The company has done backward integration of facilities that contributes to raw material efficiency, increased profitability, a competitive advantage, and improved capital efficiency.

Paradeep Phosphates Limited IPO Cons

• The company relies on success of agriculture sector, any changes in the industry may immediately impact the company.

• The company and their directors are involved in legal battles, any bad decision made from court will negatively impact the business.

• Until the Goa Transaction is completed, the company has only one production plant.

Ratio Analysis

How to Apply for this IPO

1. Go to https://ipo.adityatrading.in/

2. Enter your Client ID

3. Enter the OTP received in your register mobile number.

4. Choose the IPO and click on apply button.

5. Enter the UPI ID, Quantity and Cut off price.

6. Click on submit button

7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

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