Balaji Phosphates IPO

Balaji Phosphates IPO is set to raise ₹50.11 crore through a book-built issue. This includes a fresh issue of 59.40 lakh shares worth ₹41.58 crore and an offer for sale of 12.18 lakh shares totaling ₹8.53 crore. The IPO subscription period started from February 28, 2025, and is closing soon on March 4, 2025. Allotment is expected to be finalised on March 5, 2025, with listing scheduled on NSE SME on March 7, 2025.

The IPO price band is set between ₹66 and ₹70 per share. Retail investors must apply for a minimum lot size of 2,000 shares, requiring an investment of ₹1,32,000. To avoid oversubscription issues, bidding at the cutoff price may be advisable, bringing the amount to approximately ₹1,40,000. High Net Worth Individuals (HNIs) need a minimum of two lots (4,000 shares), amounting to ₹2,80,000.

Arihant Capital Markets Ltd is the book-running lead manager, with Skyline Financial Services Private Ltd as the registrar. Nnm Securities Private Limited is the market maker. Investors can refer to the Balaji Phosphates IPO RHP for complete details.

Industry Outlook

1. The Indian fertiliser industry plays a crucial role in supporting the agriculture sector, which contributes 19.9% to the country’s GDP and employs over 54.6% of the population. With increasing demand for fertilisers due to soil degradation and the need for higher crop yields, Balaji Phosphates Limited is well-positioned to benefit from this growing market.
2. The Indian agricultural sector is projected to reach $24 billion by 2025, driven by rising rural incomes, technological advancements, and increasing food demand. With a strong focus on producing high-quality fertilisers, Balaji Phosphates Limited is set to capitalise on this growth by catering to the expanding agricultural needs of farmers across the country.

Balaji Phosphates IPO Objectives 

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. Funds will be used to enhance production capacity and upgrade infrastructure to support future growth.
2. The proceeds will ensure smooth business operations by maintaining adequate liquidity for day-to-day expenses.
3. The remaining funds will be used for general corporate purposes.

About Balaji Phosphates Limited 

Balaji Phosphates Limited, originally incorporated as Balaji Phosphate Private Limited on April 4, 1996, has grown into a key player in the fertilizer industry. Initially registered in Uttar Pradesh, the company later converted into a public limited entity on September 18, 2023, with its corporate identity updated accordingly.

Specialising in the manufacture and supply of Single Super Phosphate (SSP), NPK Granulated and Mixed Fertilizers, and Zinc Sulphate, the company ensures compliance with the Fertilizer Control Order of India. Products are marketed under the brand names 'RATNAM' and 'BPPL' to a diverse clientele, including retailers, wholesalers, and state-owned cooperatives, with farmers as the end users.

Phosphate fertilizers produced by the company are designed to enhance soil health and crop productivity. SSP improves root development, especially in acidic soils, while zinc sulfate addresses zinc deficiencies in alkaline and sandy soils. NPK fertilizers provide a balanced mix of essential nutrients, supporting optimal crop growth. Additionally, fortified SSP with zinc and boron aligns with government initiatives to combat soil deficiencies.

Operations are led by promoters Mohit Airen and Alok Gupta, who bring over 40 years of industry experience. The company employs 40 personnel across various functions. Its manufacturing unit in Dewas, Madhya Pradesh, spans approximately 12,600 square meters with an annual production capacity of 1,20,000 MT of SSP, 3,300 MT of Zinc Sulphate, and 49,500 MT of NPK fertilizers.

To maintain quality, raw materials undergo rigorous testing in an in-house laboratory equipped with advanced instruments. Rock Phosphate, a crucial raw material, is sourced internationally from Jordan, Morocco, and Egypt, while sulfuric acid is procured locally. The cost of goods sold accounted for over 70% of revenue in recent financial years, reflecting a commitment to quality and efficiency in operations.

How To Check the Allotment Status of Balaji Phosphates IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for the Balaji Phosphates IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Balaji Phosphates IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Balaji Phosphates IPO 

Registered office: 305, Utsav Avenue, 12/5, Usha Ganj Jaora Compound,

Indore G.P.O., Indore (Madhya Pradesh)- 452001

Phone: +919827090267

E-mail: infous@balajiphosphates.com

Balaji Phosphates IPO Lot Size

Balaji Phosphates IPO Promoter Holding

Mr. Alok Gupta and Mr. Mohit Airen are the promoters of the company.

Balaji Phosphates IPO Reservation

Balaji Phosphates IPO Anchor Investors Details

Key Performance Indicators for Balaji Phosphates IPO

As of March 31, 2024, the market capitalisation of Balaji Phosphates's IPO is ₹166.44 crore. Here are the KPIs of Balaji Phosphates:

Price Metrics

Note: The Pre-IPO EPS is based on the pre-issue shareholding as per the RHP and the latest FY earnings as of March 31, 2024. The Post-Issue EPS is calculated using the post-issue shareholding and annualized FY earnings as of August 31, 2024, as stated in the RHP.

Balaji Phosphates IPO Prospectus

• Balaji Phosphates IPO RHP
• Balaji Phosphates IPO DRHP

Balaji Phosphates IPO Registrar and Lead Managers

Balaji Phosphates IPO Lead Managers

• Arihant Capital Markets Limited

Registrar for Balaji Phosphates IPO

Skyline Financial Services Private Limited

• Contact Number: 02228511022
• Email Address: ipo@skylinerta.com

Balaji PhosphatesIPO Registrar

Financial Performance of Balaji Phosphates Limited

Know before investing

Strengths

8

1. Balaji Phosphates has a strong market presence across five key states.

2. Strategic factory location in Dewas ensures cost-efficient regional distribution.

3. In-house testing lab maintains high-quality standards for all products.

4. Experienced leadership drives business growth with modern management strategies.

5. Operational capacity utilisation offers expansion potential in key product lines.

6. Continuous technological upgrades enhance manufacturing efficiency and product quality.

7. Improved inventory management optimises supply chain and reduces costs.

8. A strong dealer network ensures competitive pricing and consistent market reach.

Risks

8

1. Agricultural sector fluctuations can impact demand, revenue, and overall profitability.

2. Dependence on imported raw materials exposes the company to supply risks.

3. Weather variations and climate change may affect fertilizer demand and sales.

4. Government policy changes or subsidy cuts can impact farmer affordability.

5. Seasonal sales cycles make revenue unpredictable and cash flow uncertain.

6. Regulatory non-compliance risks could lead to penalties and product bans.

7. Promoters' personal guarantees on loans may pose financial risks.

8. Power, water, and fuel shortages can disrupt manufacturing operations.

Balaji Phosphates Limited Peer comparison