In a significant development for the fertilizer industry, the National Company Law Tribunal (NCLT), Cuttack Bench, has sanctioned the scheme of arrangement for the amalgamation of Mangalore Chemicals & Fertilizers Limited (MCFL) with Paradeep Phosphates Limited (PPL). This merger is set to reshape the landscape of the fertilizer sector in India.

Key Details of the Amalgamation

• Effective Date: The amalgamation will come into effect from April 1, 2024.
• Share Exchange Ratio: Paradeep Phosphates will issue 187 equity shares for every 100 shares of Mangalore Chemicals.
• Asset Transfer: All assets and liabilities of Mangalore Chemicals will be transferred to Paradeep Phosphates.

Shareholder and Creditor Approval

The scheme received overwhelming support from both shareholders and creditors:

• 778 equity shareholders representing 99.99% of shareholding value approved the scheme.
• 79 unsecured creditors representing 100% of credit value gave their consent.

Regulatory Approvals

• Both BSE and NSE have issued no-objection certificates for the arrangement.
• The Competition Commission of India granted its no-objection through a letter dated June 30, 2024.

Implementation Process

1. The scheme will become effective upon filing certified copies of sanction orders with the Registrar of Companies.
2. Mangalore Chemicals & Fertilizers Limited will be dissolved without winding up following the amalgamation.

Financial Implications

Paradeep Phosphates Limited has confirmed that the scheme conforms to applicable accounting standards specified under Section 133 of the Companies Act 2013. This ensures financial transparency and compliance with regulatory requirements.

Conclusion

This amalgamation is expected to create a stronger entity in the fertilizer industry, potentially leading to improved operational efficiencies and market presence. Stakeholders of both companies will be watching closely as the implementation process unfolds in the coming months.

Investors and industry observers should note that this development may have significant implications for the fertilizer sector in India, potentially influencing market dynamics and competitive landscapes.

Paradeep Phosphates Limited (PPL) has made a significant stride in its clean energy transition, securing a substantial allocation of green ammonia in a groundbreaking auction. This development marks a pivotal moment in India's push towards sustainable industrial practices and green energy adoption.

Green Ammonia Allocation

Paradeep Phosphates' unit in Paradeep has been allocated 75,000 metric tonnes per annum (MTPA) of green ammonia through the first auction conducted by the Solar Energy Corporation of India (SECI). This auction is part of the Government of India's National Green Hydrogen Mission, specifically under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme.

Historic Price Discovery

The auction achieved a remarkable price discovery of ₹55.75 per kilogram for green ammonia, which translates to approximately $641.00 per metric tonne. This competitive pricing is expected to play a crucial role in making green ammonia economically viable for industrial use.

Significance for Paradeep Phosphates

This allocation represents a significant step in Paradeep Phosphates' decarbonisation efforts and clean energy transition roadmap. The company's commitment to integrating green ammonia into its operations aligns with global trends towards reducing carbon footprints in industrial processes.

Impact on the Fertilizer Industry

As a major player in the fertilizer industry, Paradeep Phosphates' move towards green ammonia could potentially influence the sector's approach to sustainability. Green ammonia, produced using renewable energy, offers a lower-carbon alternative to conventional ammonia, which is a key component in fertilizer production.

Government Initiative

The auction, conducted under the National Green Hydrogen Mission, underscores the Indian government's commitment to promoting clean energy alternatives and reducing dependence on fossil fuels. This initiative is expected to stimulate further investments in green hydrogen and ammonia production across various industries.

Paradeep Phosphates Limited's successful bid in this landmark auction positions the company at the forefront of the green energy transition in India's fertilizer sector. As industries worldwide grapple with the challenges of climate change, such initiatives demonstrate concrete steps towards a more sustainable industrial future.