In a large deal brewing in the chemicals & fertilisers sector, Saroj Poddar-led Adventz Group is looking at reorganisation of its assets within the promoter group. Sources with direct knowledge said that Zuari Agro Chemicals, parent of Mangalore Chemicals, is in talks with another group company Paradeep Phosphates to sell its stake in subsidiary Mangalore Chemicals.

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Zuari Agro had bought Mangalore Chemicals in 2015 and is now looking to sell shares and majority control to raise funds to repay debt, sources suggest. Sources said, "Deal options include merging Mangalore Chemicals with Paradeep Phosphates."

Zuari Agro currently owns 54 percent stake in Mangalore Chemicals. Kolkata-based, Saroj Poddar is at the helm of the promoter group which owns Zuari Agro, Chambal Fertilisers and Mangalore Chemicals.

Paradeep Phosphates (PPL) is owned by Zuari Maroc Phosphates Pvt. Ltd. (ZMPPL), a joint venture between Zuari Agro Chemicals Limited (ZACL) and the OCP Group S.A. PPL completed its Rs 1500 crore initial public offering (IPO) last year. The company also used part of the proceeds to complete the acquisition of the 1.2 million MT fertilizer plant in Goa in June 2022. Post IPO, ZMPPL holds 56.10 percent in PPL.

Earlier, Zuari Agro was exploring the same deal with Chambal Fertilisers but aborted the plan as the deal was less tax efficient, sources indicate. Adventz Group did not offer a comment on queries regarding the deal talks.

The shares of Zuari Agro has been on a rise since April. The share price has increased from Rs 116 to Rs 174, witnessing a rise of 31 percent in three months, and 75 percent in three years. The share price of Paradeep Phosphate is at a price of Rs.63. It has increased by 12 percent in one month, 18 percent in 3 months and 50 percent in one year.