Balaji Phosphates IPO is set to open for subscription on February 28, 2025, and will close on March 4, 2025. This Book Built Issue IPO aims to raise approximately ₹50.11 crores, consisting of a fresh issue of ₹41.58 crores and an offer for sale (OFS) of up to 12,18,000 equity shares with a face value of ₹10 per share. The Balaji Phosphates IPO price band is set between ₹66 to ₹70 per share, offering a promising investment opportunity for investors.
The Balaji Phosphates IPO allotment date is scheduled for March 5, 2025, with the IPO listing on NSE set for March 7, 2025. The IPO quota distribution includes 40% allocation for retail investors, 30% for Qualified Institutional Buyers (QIBs), and 30% for High Net-worth Individuals (HNIs). Investors looking for a long-term investment may find this IPO attractive based on the company’s financial performance.
In terms of financials, Balaji Phosphates reported a revenue of ₹151.68 crores in 2024, a steady increase from ₹144.64 crores in 2023. However, the company’s profit stood at ₹6.04 crores in 2024, slightly lower than ₹6.09 crores in 2023. Despite the minor dip in profitability, the company has shown consistent revenue growth, making the Balaji Phosphates IPO a potential long-term investment.
Balaji Phosphates IPO Date & Price Band Details
| Category | Details |
|---|---|
| IPO Open Date: | February 28, 2025 |
| IPO Close Date: | March 4, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹66 to ₹70 Per Share |
| Issue Size: | Approx ₹50.11 Crores |
| Fresh Issue: | Approx ₹41.58 Crores |
| Offer for Sale: | Approx 12,18,000 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | Not more than 40% |
| QIB Quota: | Not more than 30% |
| NII Quota: | Not more than 30% |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Balaji Phosphates Limited: Company Overview
Balaji Phosphates Limited is a key player in India’s fertilizer industry, focusing on the production of phosphatic fertilizers. These fertilizers are crucial for agriculture, providing essential nutrients for plant growth. The company’s operations are geared towards contributing to India’s agricultural productivity.
Key aspects of Balaji Phosphates include:
- Product Focus: Primarily Single Super Phosphate (SSP) and other phosphatic fertilizers.
- Market Reach: Serving the agricultural sector in India, particularly in regions where these fertilizers are in high demand.
- Contribution to Agriculture: Plays a vital role in supplying essential nutrients to farmers, supporting crop yields.
- Industry Sector: Part of the fertilizer industry, which is a critical component of the Indian economy.
Strengths:
- Established Market Presence: Balaji Phosphates has carved out a niche in the Indian fertilizer market, particularly in the SSP segment.
- Essential Product Offering: Phosphatic fertilizers are fundamental to agriculture, ensuring consistent demand.
- Contribution to Food Security: By providing essential nutrients, the company contributes to India’s food security efforts.
- Regional Focus: Strong regional presence in areas of high agricultural demand.
Risks:
- Raw Material Price Volatility: The cost of raw materials, such as rock phosphate, can fluctuate significantly, impacting profitability.
- Regulatory Changes: The fertilizer industry is subject to government regulations and subsidies, which can change and affect business operations.
- Weather Dependency: Agricultural demand is influenced by weather patterns, leading to potential fluctuations in sales.
- Competition: The fertilizer market is competitive, with both domestic and international players.
- Environmental Concerns: Phospate mining and fertilizer production can raise environmental concerns, potentially leading to increased regulatory scrutiny.
- Supply Chain Disruptions: Issues with transportation and logistics can disrupt the supply chain.
Balaji Phosphates IPO Market Lot
Balaji Phosphates IPO has set its minimum market lot at 2,000 shares, requiring an application amount of ₹1,40,000 for investors. This means that retail and HNI investors need to apply for at least 2,000 shares to participate in the IPO.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 2000 | ₹1,40,000 |
| Retail Maximum | 1 | 2000 | ₹1,40,000 |
| S-HNI Minimum | 2 | 4000 | ₹2,80,000 |
Balaji Phosphates IPO Allotment & Listing Dates
Balaji Phosphates IPO is set to open for subscription on February 28, 2025, and will close on March 4, 2025. Investors eagerly awaiting the allotment can expect the Balaji Phosphates IPO allotment status to be finalized on March 5, 2025. Following the allotment process, the much-anticipated Balaji Phosphates IPO listing is scheduled for March 7, 2025. This IPO presents an exciting opportunity for investors looking to participate in the market, making it crucial to stay updated with key dates and subscription details.
| Type | Date |
|---|---|
| IPO Open Date: | February 28, 2025 |
| IPO Close Date: | March 4, 2025 |
| Basis of Allotment: | March 5, 2025 |
| Refunds: | March 6, 2025 |
| Credit to Demat Account: | March 6, 2025 |
| IPO Listing Date: | March 7, 2025 |
Balaji Phosphates IPO: Promoters
The Balaji Phosphates IPO is backed by strong leadership, with Mr. Alok Gupta and Mr. Mohit Airen serving as the company’s esteemed promoters.
Balaji Phosphates IPO Company Financial Report
Balaji Phosphates IPO has shown steady financial performance in recent years. In 2024, the company reported a revenue of ₹151.68 crores, marking an increase from ₹144.64 crores in 2023. Despite the revenue growth, the company’s profit stood at ₹6.04 crores in 2024, slightly lower than the ₹6.09 crores profit recorded in 2023. This financial data highlights the company’s consistent revenue growth while maintaining profitability, making the Balaji Phosphates IPO an interesting opportunity for investors looking at the chemical and phosphate industry.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹124.12 | ₹119.56 | ₹3.19 | ₹82.35 |
| 2023 | ₹144.64 | ₹136.37 | ₹6.09 | ₹96.83 |
| 2024 | ₹151.68 | ₹143.31 | ₹6.04 | ₹88.48 |
| August 2024 | ₹54.85 | ₹49.42 | ₹4.15 | ₹95.28 |
Balaji Phosphates IPO Valuation – FY2024
| KPI | Values |
|---|---|
| ROE: | 18.89% |
| ROCE: | 16.7% |
| EBITDA Margin: | 8.0% |
| PAT Margin: | 4.0% |
| Debt to equity ratio: | 0.95 |
| Earning Per Share (EPS): | ₹3.39 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 17.26% |
| Net Asset Value (NAV): | ₹19.62 |
Balaji Phosphates Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| Coromandel International Ltd | 55.81 | 29.49 | 17.88 | NA | 22,289.75 Cr. |
| Paradeep Phosphate Ltd | 1.22 | 67.63 | 2.73 | NA | 11,643.95 Cr. |
| Rama Phosphate Ltd | (17.56) | NA | (9.39)% | NA | 604.18 Cr. |
Objects of the Issue – Balaji Phosphates IPO
The Balaji Phosphates IPO is being launched with the following key objectives:
- Capital Expenditure: The funds will be utilized to support the company’s capital expenditure plans, ensuring expansion and modernization.
- Working Capital Requirements: A portion of the IPO proceeds will be allocated to meet working capital needs, enabling smoother operations and business growth.
- General Corporate Purposes: The remaining funds will be used for strategic corporate initiatives, reinforcing the company’s financial position.
Investors considering the Balaji Phosphates IPO should evaluate these objectives to understand the company’s future growth potential.
Balaji Phosphates IPO Review
- Canara Bank
- DRChoksey FinServ
- Emkay Global
- Hem Securities
- IDBI Capital
- Marwadi Shares
- Nirmal Bang
- SBICAP Securities
- Sharekhan
- SMC Global
- Sushil Finance
- Swastika Investmart
- Ventura Securities
- Geojit
- Reliance Securities
- Capital Market
- BP Wealth
- ICICIdirect
- Choice Broking
Balaji Phosphates IPO Registrar
Skyline Financial Services Private Ltd
Phone: 02228511022
Email: ipo@skylinerta.com
Website: https://www.skylinerta.com/ipo.php
Balaji Phosphates IPO Lead Managers aka Merchant Bankers
- Arihant Capital Markets Limited
Company Address
Balaji Phosphates Limited
305, Utsav Avenue, 12/5, Usha Ganj Jaora Compound,
Indore G.P.O., Indore (Madhya Pradesh)- 452001
Phone: +919827090267
Email: infous@balajiphosphates.com
Website: www.balajiphosphates.com
FAQs on Balaji Phosphates IPO
The Balaji Phosphates IPO is set to open on February 28, 2025, and will close on March 4, 2025.
The IPO price band is set between ₹66 to ₹70 per share.
The total issue size is approximately ₹50.11 crores, which includes a fresh issue of ₹41.58 crores and an Offer for Sale (OFS) of 12,18,000 equity shares.
The basis of allotment is scheduled for March 5, 2025.
The IPO is expected to be listed on NSE SME on March 7, 2025.
The minimum lot size for retail investors is 2,000 shares, requiring an investment of ₹1,40,000.
The IPO proceeds will be used for:
Capital expenditure to support expansion and modernization.
Working capital requirements for business operations.
General corporate purposes to strengthen the company’s financial position.
In FY 2024, the company reported revenue of ₹151.68 crores with a net profit of ₹6.04 crores.
The company is promoted by Mr. Alok Gupta and Mr. Mohit Airen.
Investors can apply through ASBA (Application Supported by Blocked Amount) in their bank account or via UPI through stockbrokers and trading platforms.
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or other professional advice.
