Balaji Phosphates IPO Overview 28 February
Balaji Phosphates, a prominent name in the fertilizer industry, is set to make its mark in the financial markets with an upcoming Initial Public Offering (IPO). This move has garnered significant attention from investors and industry experts alike. In this comprehensive article, we delve into the various facets of Balaji Phosphates’ IPO, providing you with detailed insights to make an informed investment decision.
Company Background
Established in 1996, Balaji Phosphates has carved a niche for itself in the manufacturing and supply of Single Super Phosphate (SSP) fertilizers. Operating under the brand names ‘RATNAM’ and ‘BPPL’, the company offers a range of products including powder and granulated SSP, NPK granulated and mixed fertilizers, and zinc sulfate.
These products are essential in addressing nutrient deficiencies in soils, thereby enhancing crop yield and quality. With a strong presence in states like Madhya Pradesh, Chhattisgarh, Maharashtra, Telangana, and Andhra Pradesh, Balaji Phosphates has been instrumental in supporting local agricultural growth.
The company’s operations are spearheaded by promoters Mr. Mohit Airen and Mr. Alok Gupta, who collectively bring over four decades of experience in the fertilizer sector. Their strategic vision and hands-on approach have been pivotal in steering the company towards sustained growth and innovation.
Balaji Phosphates IPO Summary Table
| Category | Details |
|---|---|
| IPO Open Date | February 28, 2025 |
| IPO Close Date | March 4, 2025 |
| Basis of Allotment Date | March 5, 2025 |
| Refunds Initiation | March 6, 2025 |
| Credit to Demat Accounts | March 6, 2025 |
| IPO Listing Date | March 7, 2025 |
| Face Value | ₹10 Per Equity Share |
| Price Band | ₹[.] to ₹[.] Per Share |
| Issue Size | Approx ₹[.] Crores |
| Fresh Issue | Approx ₹[.] Crores |
| Offer for Sale | 12,18,000 Equity Shares |
| Issue Type | Book Built Issue |
| Listing Exchange | NSE SME |
| Retail Quota | Not more than 40% |
| QIB Quota | Not more than 30% |
| NII Quota | Not more than 30% |
Market Lot Details
| Investor Category | Lot Size | Shares | Amount (₹) |
|---|---|---|---|
| Retail Minimum | 1 | [.] | ₹[.] |
| Retail Maximum | 1 | [.] | ₹[.] |
| S-HNI Minimum | 2 | [.] | ₹[.] |
Financial Performance of Balaji Phosphates
| Period Ended | Revenue (₹ Cr.) | Expense (₹ Cr.) | Profit After Tax (₹ Cr.) | Assets (₹ Cr.) |
|---|---|---|---|---|
| 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 Metrics (FY2024)
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 18.89% |
| Return on Capital Employed (ROCE) | 16.7% |
| EBITDA Margin | 8.0% |
| Profit After Tax (PAT) Margin | 4.0% |
| Debt to Equity Ratio | 0.95 |
| Earnings Per Share (EPS) | ₹3.39 (Basic) |
| Price/Earnings (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 17.26% |
| Net Asset Value (NAV) | ₹19.62 |
Peer Comparison
| Company | EPS (₹) | P/E Ratio | RoNW (%) | Income (₹ Cr.) |
|---|---|---|---|---|
| Coromandel International Ltd | 55.81 | 29.49 | 17.88 | 22,289.75 |
| Paradeep Phosphate Ltd | 1.22 | 67.63 | 2.73 | 11,643.95 |
| Rama Phosphate Ltd | (17.56) | NA | (9.39) | 604.18 |
Objects of the IPO
| Purpose |
|---|
| To meet capital expenditure requirements |
| To meet working capital requirements |
| General corporate purposes |
Promoters of Balaji Phosphates IPO
| Name |
|---|
| Mr. Alok Gupta |
| Mr. Mohit Airen |
IPO Registrar and Lead Manager Details
| Registrar | Contact Details |
|---|---|
| Ankit Consultancy Private Limited | Phone: +91 9752344442 |
| Email: compliance@ankitonline.com | |
| Website: ankitonline.com |
| Lead Manager |
|---|
| Arihant Capital Markets Limited |
Balaji Phosphates Company Details
| Company Name | Balaji Phosphates Limited |
|---|---|
| Address | 305, Utsav Avenue, 12/5, Usha Ganj Jaora Compound, Indore, MP – 452001 |
| Phone | +91 9827090267 |
| infous@balajiphosphates.com | |
| Website | balajiphosphates.com |
Balaji Phosphates IPO Important FAQs
| Question | Answer |
|---|---|
| What is Balaji Phosphates IPO? | It is an SME IPO raising ₹[.] crores via NSE. |
| When does the IPO open for subscription? | February 28, 2025 |
| What is the investors’ portion? | QIB: 30%, NII: 30%, Retail: 40% |
| How to apply for Balaji Phosphates IPO? | Via ASBA through your bank or UPI through stockbrokers. |
| What is the IPO price band? | ₹[.] per share |
| What is the minimum lot size for retail investors? | [.] Shares with ₹[.] amount |
| What is the IPO allotment date? | March 5, 2025 |
| What is the listing date? | March 7, 2025 |
This table provides a detailed overview of Balaji Phosphates IPO, making it easy for investors to access key details at a glance. 🚀📊
Balaji Phosphates IPO Industry Overview
The fertilizer industry in India plays a crucial role in ensuring food security for the nation’s vast population. Phosphatic fertilizers, in particular, are vital as they supply essential nutrients that promote robust root development and overall plant health.
The demand for such fertilizers has been on an upward trajectory, driven by the need to enhance agricultural productivity and meet the challenges posed by limited arable land. Recent trends indicate a shift towards balanced nutrient management and the adoption of fortified fertilizers to combat specific soil deficiencies.
This evolving landscape presents opportunities for companies like Balaji Phosphates to expand their product offerings and cater to the diverse needs of the farming community.
IPO Details
Balaji Phosphates has filed its Draft Red Herring Prospectus (DRHP) on September 30, 2024, signaling its intent to go public. The IPO is structured as a Book Built Issue, aiming to raise funds through a combination of fresh equity shares and an offer for sale by existing shareholders.
While specific dates are yet to be announced, the company plans to list on the NSE SME exchange. The price band and lot size will be determined closer to the opening date, providing potential investors with detailed information to assess the investment opportunity.
Objectives of the IPO
The primary objectives outlined in the DRHP for raising funds through the IPO include:
- Capital Expenditure: Establishing a warehouse at the subsidiary’s factory premises and upgrading existing facilities to enhance operational efficiency.
- Working Capital Requirements: Augmenting the company’s working capital to support increased production and meet growing market demand.
- General Corporate Purposes: Addressing miscellaneous corporate needs that may arise, ensuring smooth business operations and strategic flexibility.
Financial Performance
Analyzing the financial health of Balaji Phosphates provides valuable insights into its operational efficiency and profitability. As per the latest available data:
- Revenue: The company reported a revenue of ₹151.68 crores in 2024, marking an increase from ₹144.64 crores in 2023.
- Profit After Tax (PAT): The PAT stood at ₹6.04 crores in 2024, slightly lower than the ₹6.09 crores reported in the previous year.
These figures reflect a stable financial performance, with consistent revenue generation and profitability. The slight dip in PAT may warrant a closer look into operational expenses and cost management strategies.
Strengths of Balaji Phosphates ipo
Several factors contribute to the competitive edge of Balaji Phosphates in the fertilizer industry:
- Diverse Product Portfolio: Offering a range of fertilizers tailored to address various soil nutrient deficiencies, catering to a broad spectrum of agricultural needs.
- Established Brand Presence: The ‘RATNAM’ and ‘BPPL’ brands are well-recognized among farmers and retailers, fostering customer loyalty and trust.
- Experienced Leadership: The promoters’ extensive experience and strategic vision have been instrumental in navigating industry challenges and capitalizing on growth opportunities.
Risks and Challenges
Potential investors should be cognizant of the following risks associated with the company and the industry:
- Market Risks: Fluctuations in raw material prices and changes in demand due to climatic conditions can impact profitability.
- Regulatory Challenges: The fertilizer industry is subject to stringent regulations, and any changes in government policies can affect operations.
- Operational Hurdles: Ensuring consistent product quality and managing supply chain efficiencies are ongoing challenges that require continuous attention.
Allotment and Listing
Upon closure of the IPO, the company will undertake the process of share allotment to successful applicants. The shares are expected to be listed on the NSE SME exchange, providing liquidity to investors. Detailed timelines for