Indian Phosphate is launching an IPO with a fresh issue of 68,04,000 shares worth INR 67.36 crores. The company aims to set up a new manufacturing unit at SIPCOT, to meet its working capital requirements and for general corporate purposes. 

Indian Phosphate IPO – Important Dates

Indian Phosphate Limited IPO  – Company Profile

The company is mainly engaged in the production of Linear Alkylbenzene Sulphonic Acid LABSA 90%, popularly known as LABSA, is an anionic surfactant and it is used in the formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents.

The Company has a presence in the major states like, Punjab, Bihar, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Himachal Pradesh, West Bengal and Uttarakhand. Major revenue of the company is derived from LABSA 90% (Chemical) and Single Super Phosphate (fertilizer). The rock phosphate is the main raw material for production of Single Super Phosphate (SSP).

During the Financial year 2023- 2024, the Company executed an agreement with an associate company Udaipur Poly Sacks Limited for acquisition of 26% shareholding and to undertake control of the composition of the board of Director in pursuant to provision of 2(87)(i) of Companies Act, 2013 by which Udaipur Poly Sacks Limited became subsidiary company.

Indian Phosphate Ltd IPO Fundamental Analysis 

Indian Phosphate IPO Financial Analysis

Indian Phosphate’s revenue and profits fluctuated over the years, with a decline in 2024. Equity and NAV grew steadily, but RoNW and inventory turnover dropped. The debt-equity ratio increased, signaling rising leverage.

1. Revenue: Increased from ₹55,715.20 lakhs in 2022 to ₹76,869.36 lakhs in 2023, but slightly decreased to ₹70,417.94 lakhs in 2024.

2. Equity: Steadily grew from ₹5,092.27 lakhs in 2022 to ₹8,099.12 lakhs in 2024.

3. Expenses: Rose from ₹53,664.80 lakhs in 2022 to ₹74,854.20 lakhs in 2023, then reduced to ₹68,725.37 lakhs in 2024.

4. Profit After Tax: Marginally increased from ₹1,616.61 lakhs in 2022 to ₹1,659.53 lakhs in 2023, but fell to ₹1,347.32 lakhs in 2024.

5. Diluted EPS: Increased from ₹8.89 in 2022 to ₹9.13 in 2023, then decreased to ₹7.41 in 2024.

6. RoNW: Declined from 31.75% in 2022 to 16.63% in 2024.

7. NAV per Share: Grew from ₹28.00 in 2022 to ₹44.54 in 2024.

8. Total Assets: Peaked at ₹17,407.45 lakhs in 2023 but decreased to ₹16,341.56 lakhs in 2024.
9. Total Liabilities: Increased from ₹5,697.66 lakhs in 2022 to ₹10,655.65 lakhs in 2023, then fell to ₹8,242.44 lakhs in 2024.

10. Debt Equity Ratio: Initially decreased from 0.36 in 2022 to 0.23 in 2023, then increased to 0.50 in 2024.

11. Current Ratio: Slightly decreased from 1.66 in 2022 to 1.49 in 2024.

12. Inventory Turnover Ratio: Decreased significantly from 33.61 in 2022 to 12.76 in 2024.

Indian Phosphate Limited IPO Peer Comparison

Indian Phosphate Limited demonstrates stronger financial health compared to Rama Phosphates Limited. Indian Phosphate has higher revenue (₹70,417.94 lakhs) and positive performance metrics, including an EPS of ₹7.41 and an RoNW of 16.63%. In contrast, Rama Phosphates Limited, despite having a higher NAV per share of ₹199.41, shows negative figures with an EPS of -₹17.56 and an RoNW of -8.81%, indicating potential financial challenges.

Indian Phosphate Ltd IPO Objective

The main objective of the funds is to establish a new facility at SIPCOT for LABSA 90% and Sulphuric Acid production with INR 33.18 crores, meet working capital needs, and support general corporate purposes.

1. Setting up new facility at SIPCOT: As part of the growth strategy and with a view to expanding the capacity of the existing product LABSA 90% and to backward integrate its production by producing Sulphuric Acid, the company is planning to set up a new facility in SIPCOT, Cuddalore, Tamil Nadu. For the said purpose, the company plans to utilise INR 33.18 crores from the funds raised.

2. Working capital requirements: The company’s business is working capital-intensive and for the said purpose, the company plans to utilise INR 26.45 crores from the funds raised. 
3. General corporate purpose: The company will allocate the balance funds to general corporate goals, including strategic initiatives, brand building, addressing unforeseen contingencies, and other purposes to support overall business growth and operations.

Indian Phosphate IPO Risks And Challenges

Indian Phosphate relies on one customer for 79% of its revenue, making it vulnerable to revenue loss. Outstanding litigation and negative cash flow could further impact the business, reputation, and financial stability.

1. The company derives 79% of the revenue from one customer. revenue.Loss of this large customer may affect the revenues and profitability.

2. The company has certain outstanding litigation, an adverse outcome of which may adversely affect the business, reputation and results of operations.

3. The Company had negative cash flow from operating activity in recent fiscals. Sustained negative cash flow could adversely impact the business, financial condition, and results of operations.

Indian Phosphate Ltd IPO – Industry & Market Potential

Despite the current pandemic situation, the Indian chemical industry has numerous opportunities considering the supply chain disruption in China and trade conflict among the US, Europe and China. Anti-pollution measures in China will also create opportunities for the Indian chemical industry in specific segments.

Additional support, in terms of fiscal incentives, such as tax breaks and special incentives through PCPIRs or SEZs to encourage downstream units will enhance production and development of the industry. The dedicated integrated manufacturing hubs under Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy to attract an investment of Rs. 20 lakh crore (US$ 276.46 billion) by 2035.

To bring about structural changes in the working of domestic chemical industry, future investments should not only focus on transportation of fuels such as petrol and diesel, but also on crude-to-chemicals complexes or refineries set up to cater to the production of chemicals.

Indian Phosphate Limited IPO – Type of Offer

The offer size of Indian Phosphate’s IPO includes a fresh issue of 68,04,000 shares valued at INR 67.36 crores. The funds will be utilized to establish a new manufacturing unit at SIPCOT, fulfill working capital needs, and support general corporate purposes.

Indian Phosphate IPO Offer Size

The offer size for Indian Phosphate’s IPO includes a fresh issue of 68,04,000 shares worth INR 67.36 crores. The proceeds will be used to establish a new manufacturing unit at SIPCOT, meet working capital requirements, and address general corporate purposes.

Indian Phosphate Limited IPO Allotment Structure

Indian Phosphate’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 235,200 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50 % of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15 of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 373,200 shares, are reserved for market makers. 

How to apply for the Indian Phosphate IPO?

To apply for the Indian Phosphate IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Indian Phosphate IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Indian Phosphate IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO. 

 How do you check Indian Phosphate Limited IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Indian Phosphate IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Indian Phosphate IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Indian Phosphate IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Indian Phosphate IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes. 

Indian Phosphate Ltd IPO Offer Registrar

The registrar for the Indian Phosphate IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Bigshare Services Private Limited

Office No. S6 – 2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre,

Mahakali Caves Road, Andheri – East, Mumbai – 400093

[email protected];

Website: www.bigshareonline.com

Indian Phosphate Limited IPO  – FAQs

1. What is the allotment date of the Indian Phosphate IPO? 

The allotment date of the Indian Phosphate IPO is August 30, 2024. 

2. What is the price band of the Indian Phosphate IPO? 

The price band of the issue is INR 94-99 per share. 

3. What is the size of the Indian Phosphate IPO? 

The offer size for Indian Phosphate’s IPO includes a fresh issue of 68,04,000 shares worth INR 67.36 crores. The proceeds will be used to establish a new manufacturing unit at SIPCOT, meet working capital requirements, and address general corporate purposes.

4. What is the listing date of the Indian Phosphate IPO? 

The listing date of Indian Phosphate’s IPO is September 3, 2024.