Goemkarponn desk
PANAJI:
Shares of Paradeep Phosphates Ltd plunged 3% on Tuesday, March 19, after the company shut down its ammonia and urea plants in Goa due to the breakdown of a gas compressor.
“The company has shut down the ammonia and urea plants at Goa due to breakdown of a synthesis gas compressor,” Paradeep Phosphates said in a stock exchange filing.
However, the company did not disclose the timeline to resume operations and the measures taken to address the issue.
On another note, in February, Mangalore Chemicals and Fertilisers Ltd (MCFL) disclosed plans of a merger scheme with Paradeep Phosphates, aiming to create one of India’s leading integrated private sector fertiliser firms, boasting a combined manufacturing capacity of 3.6 MMTPA.
The board of directors of both Mangalore Chemicals and Paradeep Phosphates gave a go-ahead to a composite scheme of arrangement for the merger.
Under this arrangement, investors will receive 187 shares of Paradeep Phosphates for every 100 equity shares of Mangalore Chemicals, indicating a potential upside of 18% based on the swap ratio.
With Mangalore Chemicals’ notable footprint in Southern India and Paradeep Phosphates’ robust presence in the Northern, Central, and Eastern regions, the envisioned merged entity is poised to emerge as a pan-Indian fertiliser company.
The objective of this initiative is to bolster customer engagement, strengthen capabilities in handling large deals, leverage the manufacturing capacities of both entities, capitalise on economies of scale, optimise the supply chain, and ultimately deliver a more compelling value proposition for all stakeholders involved.
Shares of Paradeep Phosphates were trading 1.31% lower at ₹69.16 apiece on BSE at 9:47 am on March 19.
