Balaji Phosphates Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹70
Per ShareLot Size
2000 Shares
Minimum Investment
₹1,40,000
Issue Size
₹50.11 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
40%
QIB Quota
30%
NII Quota
30%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Balaji Phosphates Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
69.9%
Issue Type
Book Building - SME
ISIN
INE0PQ601019
About the Company
The company is engaged in the production of NPK Granulated and Mixed Fertilizers, as well as Zinc Sulfate (21%). The Company focuses on manufacturing Phosphate Fertilizers, offering a diverse range of products including Single Super Phosphate (SSP) in both powder and granulated forms. Its SSP products are produced in accordance with the Fertilizer Control Order of India standards. Its facility has an installed capacity of 120,000 MTPA for SSP and 3,300 MTPA for Zinc Sulfate. SSP is a key contributor to its revenue. Its manufacturing plant is located at 23-B, 24-A, A.B. Road, Industrial Area No.1, Dewas-455001, Madhya Pradesh.
Industry Overview
The Company operates in the fertilizer sector which is dependent on Agriculture. As per the Second Advance Estimates of National Income, the share of GVA of agriculture and allied sectors in the total economy in 2022-23 was 18.3%, with a growth rate of 3.3%. Between April 2000-September 2023, FDI in agriculture services stood at US$ 4.77 billion. According to Bain & Co., the Indian agricultural sector is predicted to increase to US$ 30-35 billion by 2025.
Company History
Balaji Phosphates Limited was originally incorporated as Balaji Phosphates Private Limited on April 4, 1996, pursuant to Certificate of Incorporation issued by the Registrar of Companies, Kanpur, under the provisions of the Companies Act, 1956. Following a Special Resolution passed at an Extraordinary General Meeting (EGM) on September 7, 2023, the company was converted from a private limited company to a public limited company. Concurrently, the company's name was changed to "Balaji Phosphates Limited." Upon this conversion, a new Certificate of Incorporation was issued by the Registrar of Companies, Gwalior, dated September 18, 2023, with Corporate Identification Number (CIN) U24123MP1996PLC067394.
Products & Services
- The company is engaged in the production of NPK Granulated and Mixed Fertilizers, as well as Zinc Sulfate (21%).
Growth Strategy
- Optimizing Operational Efficiency.
- Modernization and upgradation of its technology.
- Inventory Management Enhancement.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of upto 71,58,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of Balaji Phosphates Limited ("the Company" or the "Issuer") for cash at a price of Rs. 70/- per equity share (the "Offer Price"), (including a premium of Rs. 60/- per equity share), aggregating upto Rs. 50.11 crores ("the Offer"), comprising of fresh offer of up to 59,40,000 equity shares aggregating up to Rs. 41.58 crores (the "Fresh Issue") ("the Issue") and an offer for sale of up to 12,18,000 equity shares by Aalok Gupta and Mohit Airen ("Selling Shareholder") aggregating to Rs. 8.53 crores ("Offer for Sale"), the offer includes a reservation of 3,58,000 equity shares of face value of Rs. 10/- each, at an offer price of Rs. 70/- per equity share for cash, aggregating to Rs. 2.51 crores ("the Market Maker Reservation Portion"). The offer less market maker reservation portion i.e. offer of 68,00,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 70/- per equity share, aggregating to Rs. 47.60 crores is here in after referred to as the "Net Offer". The offer and the net offer will constitute 30.10 % and 28.60 % respectively of the post offer paid up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Cost Effective sourcing and Strategic Location of Manufacturing Unit.
- Cordial relations with customers.
- Sustainable business model.
- Leveraging the expertise of its Promoters and Management Team.
- Quality assurance.
- The company business is dependent on the performance of the agricultural sector in which its fertilizers are used. Any developments affecting the performance of the agricultural sector are likely to affect its business, results of operations and financial condition.
- Reliance on imported raw materials poses risks that could adversely affect its production capabilities and overall profitability.
- The company business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on its business, results of operations and financial condition.
- The fertilizer industry in India is a regulated industry. Any change in Government policies towards the agriculture sector or a reduction in subsidies and incentives provided to farmers could adversely affect its business and results of operations.
- The business is highly seasonal and such seasonality may affect its operating results and cash flow of the Company.