Paradeep Phosphates has approached the government to seek its approval for an IPO of the fertilizer company.
The company is majorly owned by Zuari Maroc Phosphates (80.45 per cent), which is a joint venture between Zuari Agro Chemicals and Maroc Phosphore. The Government of India owns 19.55 per cent of the company. Zuari Agro is an Adventz group company and Maroc Phosphore is a wholly owned subsidiary of OCP, Morocco.
The company has prepared a draft red herring prospectus and sought views, as well as a go-ahead, from the Department of Investment and Public Asset Management (DIPAM), said an official, adding, the government is looking to relinquish its stake in the company.
This move would be in line with the government’s strategy to reduce or sell its entire shareholding in strategic investments where it doesn’t hold a majority stake. Recently, the government sold its entire stake in Tata Communications.
DIPAM Secretary Tuhin Kanta Pandey on Wednesday said that the government intends to exit Paradeep Phosphates after it was divested in 2002. “We are retaining some stake and we will completely exit this year. We have our intention to exit some other undertakings subject to the court rulings.”
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