Paradeep Phosphates Completes Distribution of Fractional Share Proceeds Following Composite Scheme of Arrangement

Paradeep Phosphates Completes Distribution of Fractional Share Proceeds Following Composite Scheme of Arrangement​

Paradeep Phosphates Limited has confirmed the distribution of net proceeds to eligible shareholders concerning fractional entitlements stemming from its Composite Scheme of Arrangement. The distribution was completed on May 08, 2026, following the arrangements involving Mangalore Chemicals & Fertilizers Limited.

The report certifies that the sale proceeds from the consolidated fractional entitlement were distributed to the respective eligible shareholders in proportion to their entitlements, marking the conclusion of the required distribution under the Scheme.

Scheme Background​

The Composite Scheme of Arrangement included Paradeep Phosphates Limited and Mangalore Chemicals & Fertilizers Limited. The scheme was approved by the National Company Law Tribunal, Bengaluru Bench, vide its Order dated September 24, 2025, and by the National Company Law Tribunal, Cuttack Bench, vide its Order dated September 26, 2025.

Under the terms of the Scheme, the Transferor Company (Mangalore Chemicals & Fertilizers Limited) merged with and into Paradeep Phosphates Limited as of October 16, 2025, effectively dissolving the Transferor Company.

Eligible equity shareholders of the Transferor Company, as of the record date of October 31, 2025, were allotted equity shares of Paradeep Phosphates Limited on December 03, 2025. The allotment ratio was 187 fully paid-up equity shares of Rs. 10 each of Paradeep Phosphates Limited for every 100 fully paid-up equity shares of Rs. 10 each of the Transferor Company.

Consequently, Paradeep Phosphates Limited allotted 22,16,23,331 equity shares of Rs. 10 each, which included 23,217 equity shares of Rs. 10 each identified as "Fractional Shares." The Board of Directors appointed the 'PPL Merger Trust,' managed by Vistra ITCL (India) Limited, to hold these Fractional Shares in trust.

Distribution Details​

As required under the Scheme, the Fractional Shares needed to be sold in the open market within 90 days of allotment, with the net proceeds distributed to the respective eligible equity shareholders of the Transferor Company proportionally to their fractional entitlements.

The distribution of the sale proceeds, after deduction of expenses incurred, was finalized on May 08, 2026.

Certification of Compliance​

Both the Audit Committee and the Independent Directors of Paradeep Phosphates Limited issued reports on May 11, 2026, certifying the completion of the distribution. The committees affirmed that the Company has compensated the eligible equity shareholders by distributing the sale proceeds of the fractional entitlements in accordance with the provisions of the Scheme.

The Audit Committee report was issued by Mr. Dipankar Chatterji, and the Independent Directors' report was also certified by Mr. Dipankar Chatterji.

PARADEEP Stock Price Movement​

Shares of Paradeep Phosphates Limited today slipped by 1.07% to settle at ₹122.59. The stock saw heavy investor interest, trading on significant volume with 6.68 million shares changing hands.