Balaji Phosphates IPO: A Comprehensive Guide
The Initial Public Offering (IPO) of Balaji Phosphates Limited opened on February 28, 2025, and closed on March 4, 2025. This blog post provides a detailed analysis of the IPO, including company information, IPO details, financial performance, and a review to help investors make informed decisions.
What Does Balaji Phosphates Do?
Balaji Phosphates Limited, established in 1996, is involved in the manufacturing and supply of various fertilizers, including Single Super Phosphate (SSP), NPK Granulated and Mixed Fertilizers, and Zinc Sulphate. These products are marketed under the brands ‘RATNAM’ and ‘BPPL’ and are compliant with India's Fertilizer Control Order standards.
Key IPO Details
Here's a quick overview of the Balaji Phosphates IPO:
- IPO Date: February 28, 2025 to March 4, 2025
- Listing Date: March 7, 2025
- Face Value: ₹10 per share
- Issue Price: ₹70 per share
- Lot Size: 2,000 Shares
- Total Issue Size: 71,58,000 shares (₹50.11 Cr)
- Listing At: NSE SME
IPO Timeline: February 28, 2025 (Open) - March 7, 2025 (Listing)
Detailed IPO Information
A more detailed breakdown of the IPO is presented below:
| Particular | Details |
|---|---|
| IPO Date | February 28, 2025 to March 4, 2025 |
| Listing Date | March 7, 2025 |
| Face Value | ₹10 per share |
| Issue Price | ₹70 per share |
| Lot Size | 2,000 Shares |
| Total Issue Size | 71,58,000 shares (aggregating up to ₹50.11 Cr) |
| Fresh Issue | 59,40,000 shares (aggregating up to ₹41.58 Cr) |
| Offer for Sale | 12,18,000 shares of ₹10 (aggregating up to ₹8.53 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share Holding Pre Issue | 1,78,37,100 shares |
| Share Holding Post Issue | 2,37,77,100 shares |
| Market Maker Portion | 3,58,000 shares (Nnm Securities Private Limited) |
IPO Subscription Details
The IPO allocated shares to different investor categories. Here’s the breakdown:
| Investor Category | Shares Offered | Percentage Allocation |
|---|---|---|
| Anchor Investor | 5,72,000 | 7.99% |
| Market Maker | 3,58,000 | 5% |
| QIB (Qualified Institutional Buyers) | 14,68,000 | 20.51% |
| NII (HNI) | 20,40,000 | 28.5% |
| Retail | 27,20,000 | 38% |
| Total | 71,58,000 | 100% |
Anchor Investors
Balaji Phosphates IPO raised Rs 4.00 crore from anchor investors.
- Anchor Bid Date: February 27, 2025
- Shares Offered: 5,72,000
- Anchor Portion Size: Rs 4.00 crore
- Anchor Lock-in (50% Shares): April 4, 2025
- Anchor Lock-in (Remaining Shares): June 3, 2025
For a detailed list of anchor investors, refer to the Balaji Phosphates IPO Anchor Investors list.
IPO Timeline
Stay updated with the key dates of the IPO process:
- IPO Open Date: February 28, 2025
- IPO Close Date: March 4, 2025
- Tentative Allotment: March 5, 2025
- Initiation of Refunds: March 6, 2025
- Credit of Shares to Demat: March 6, 2025
- Tentative Listing Date: March 7, 2025
Lot Size Details
Investors can bid for a minimum of 2000 shares and in multiples thereof. Here’s the investment details:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹1,40,000 |
| Retail (Max) | 1 | 2000 | ₹1,40,000 |
| HNI (Min) | 2 | 4,000 | ₹2,80,000 |
Promoter Holding
The promoters of the company are Mr. Alok Gupta and Mr. Mohit Airen.
- Share Holding Pre Issue: 100%
- Share Holding Post Issue: 69.90%
Company Financials
Here’s an overview of Balaji Phosphates Limited’s financial performance:
| Period Ended | 31 Aug 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 95.28 | 88.48 | 96.83 | 82.35 |
| Revenue | 54.85 | 151.68 | 144.64 | 124.12 |
| Profit After Tax | 4.15 | 6.04 | 6.09 | 3.19 |
| Net Worth | 39.15 | 35 | 28.97 | 22.86 |
| Total Borrowing | 35.58 | 33.22 | 26.32 | 19.88 |
Amount in ₹ Crore
Key Performance Indicators (KPI)
The market capitalization of Balaji Phosphates IPO is Rs 166.44 Cr.
| KPI | Value |
|---|---|
| ROE | 18.89% |
| ROCE | 16.7% |
| Debt/Equity | 0.95 |
| RoNW | 17.26% |
| PAT Margin | 4.00 |
| Price to Book Value | 3.57 |
| EPS (Rs) - Pre IPO | 3.39 |
| P/E (x) - Pre IPO | 20.67 |
| EPS (Rs) - Post IPO | 4.19 |
| P/E (x) - Post IPO | 16.72 |
Objects of the Issue
The company plans to use the net proceeds for:
- Meeting capital expenditure requirements.
- Meeting working capital requirements.
- General corporate purposes.
IPO Review
"BPL is engaged in the manufacturing and supplying of SSP and related fertilizer products. The company marked growth in its top lines for the reported periods. The boosted bottom lines from FY23 onwards raises eyebrows and concern over its sustainability. It is operating in a highly competitive and fragmented segment. Based on its recent financial performance, the issue appears aggressively priced. Well-informed investors may park moderate funds for medium to long term."
Company Contact Details
- Address: 305, Utsav Avenue, 12/5 Usha Ganj Jaora Compound, Indore G.P.O., Indore- 452001
- Phone: +919827090267
- Email: balajiphosphate@gmail.com
- Website: https://www.balajiphosphates.com/2
IPO Registrar
- Registrar: Skyline Financial Services Private Ltd
- Phone: 02228511022
- Email: ipo@skylinerta.com
- Website: https://www.skylinerta.com/ipo.php
Conclusion
The Balaji Phosphates IPO presents an opportunity to invest in a company with a long-standing presence in the fertilizer industry. However, investors should carefully consider the company's financials, competitive landscape, and IPO valuation before making a decision.