Paradeep Phosphates gets Sebi's go-ahead to float IPO

New Delhi, Sep 27: Leading fertilizer company Paradeep Phosphates has received Sebi's go-ahead to mop up funds through an initial public offering (IPO).  The IPO comprises fresh issue of equity shares worth Rs 1,255 crore and an offer for sale (OFS) of up to 12,00,35,800 shares by its existing shareholders and promoters, according to the draft red herring prospectus (DRHP). Under the OFS, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will offer up to 75,46,800 shares and up to 11,24,89,000 equity shares will be offered by Government of India. Paradeep Phosphates, which filed preliminary IPO papers with the regulator in August, obtained its observations on September 22, an update with the Securities and Exchange Board of India (Sebi) showed on Monday. In Sebi parlance, issuance of observations implies its go-ahead to float IPO. Currently, ZMPPL holds 80.45 per cent and Government of India own 19.55 per cent stake in the company.Proceeds of fresh issue will be used to partly finance the acquisition of the fertiliser manufacturing facility in Goa, for payment of debt and general corporate purposes. Paradeep Phosphates is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as di-ammonium phosphate (DAP) and NPK fertilizers. Its fertilizers are marketed under brands like 'Jai Kisaan – Navratna' and 'Navratna'.Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the lead managers to the issue.