Paradeep Phosphates Limited has disclosed to stock exchanges that it received a seizure memo from the Customs Department on January 24, 2026, regarding imported Technical Grade Urea worth Rs.103.30 crores. This development follows an earlier customs search that was initiated in October 2025.

Seizure Details

The Commissioner Customs at Custom House, Marmagoa, Goa has seized 25,000 MTs of Technical Grade Urea imported by the company for manufacturing NPK fertilizers. The seizure memo was received on January 24, 2026, and the company has made the disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015.

Alleged Violations

The customs authorities have alleged violations based on test results showing Biuret content higher than permissible limits. The testing process involved multiple laboratories, with initial samples sent to Regional Fertilizer Control Laboratory (RFCL), Mumbai, which conducts testing only for fertilizer grade urea. Subsequently, fresh samples were drawn and sent to Central Revenues Control Laboratory (CRCL) New Delhi, which reported elevated Biuret content.

The alleged violations include:

• Contravention of DGFT notification No. 79/2015-2020 dated March 18, 2024
• Violations of Foreign Trade Policy (FTP) provisions
• Contraventions under the Customs Act, 1962

Company's Response

Paradeep Phosphates has contested the testing methodology adopted by CRCL and stated there is currently no material impact on the company's financials or operations. The company is pursuing appropriate legal recourse for provisional release of the seized goods to use them exclusively for captive consumption as raw material in NPK fertilizer manufacturing at its Goa plant.

The company is also persuading customs authorities to re-test the samples in accordance with procedures mandatorily required under Para 3 read with Annexures A to H of Indian Standard IS 1781: 2022.

Regulatory Compliance

This disclosure has been made pursuant to Regulation 30(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had previously informed exchanges about the customs search through a letter dated October 4, 2025.

Source:

Paradeep Phosphates Limited has received trading approval for 22,16,23,331 equity shares of ₹10 each from both National Stock Exchange of India Limited and BSE Limited on December 30. These shares were allotted pursuant to the scheme of amalgamation with Mangalore Chemicals & Fertilizers Limited (MCFL), marking the completion of a significant corporate restructuring.

Trading Approval and Listing Details

The company has successfully obtained the necessary regulatory approvals for listing the substantial share issuance. Key details of the listing include:

Merger Implementation Progress

The listing of these shares represents the culmination of the merger process between Paradeep Phosphates Limited and Mangalore Chemicals Fertilizers Limited. Earlier developments in this corporate action included specific share allotments to promoter group members and Adventz Finance Private Limited.

Previous share allotments under the merger included:

Corporate Restructuring Impact

The successful completion of the amalgamation scheme strengthens Paradeep Phosphates' market position in the fertilizer sector. The merger process, which began with a record date of October 31, has now reached its final implementation stage with the listing of the substantial share issuance.

The trading approval confirms that all regulatory requirements have been met, allowing the newly issued shares to be actively traded on both major Indian stock exchanges. This development provides liquidity to the shareholders of the erstwhile MCFL who received PPL shares as part of the merger consideration.

Market Implications

With the listing of over 22 crore additional shares, Paradeep Phosphates has significantly expanded its equity base. The company, operating in the fertilizer sector with a mid-cap market classification, is now positioned to leverage the combined strengths of both entities post-merger.

The completion of this corporate action represents a milestone in the Indian fertilizer industry's consolidation efforts, potentially creating operational synergies and enhanced market presence for the merged entity.