Balaji Phosphates IPO: Balaji Phosphates IPO, a manufacturer of phosphate fertilizers and zinc sulphate, will open for subscription on Friday, February 28. The company aims to raise Rs 50.11 crore through fresh equity share issue of 59.40 lakh shares and offer for sale of 12.18 lakh shares. The shares will be listed on the NSE SME platform on March 7.
Balaji Phosphates IPO
Balaji Phosphates IPO opens for subscription on February 28, 2025 and closes on March 4, 2025. Allotment for Balaji Phosphates IPO is expected to be finalised on Wednesday, March 5, 2025. Balaji Phosphates IPO will list on NSE SME on Friday, March 7, 2025.
The price band of Balaji Phosphates IPO is set at ₹ 66 to ₹ 70 per share. The minimum lot size for an application is 2000 shares. The minimum amount of investment required by retail investors is ₹ 1,32,000. But it is suggested to the investor to bid at the cutoff price to avoid oversubscription scenario, which is about ₹ 1,40,000. The minimum lot size investment for HNIs is 2 lots (4,000 shares), amounting to ₹ 2,80,000.
The book-running lead manager for Balaji Phosphates IPO is Arihant Capital Markets Ltd, while Skyline Financial Services Private Ltd is the registrar to the issue. The market maker for Balaji Phosphates IPO is Nnm Securities Private Limited.
Balaji Phosphates IPO Key Details
The company will use the funds raised from the fresh issue to meet its capital expenditure and working capital requirements. Part of the IPO proceeds will be used for general corporate purposes.
Balaji Phosphates IPO GMP
According to Investorgain.com, Balaji Phosphates IPO shares were trading with a GMP of Rs 0 in the Unlisted Market, indicating a zero premium over the IPO Price Band of Rs 70.
| IPO Opening Date | 28th February, 2025 |
| IPO Closing Date | 4th March, 2025 |
| Face Value | ₹10 per share |
| Price Band | ₹66 to ₹70 per share |
| Lot Size | 2000 Shares |
| Total Issue Size | ₹50.11 Cr |
| IPO Listing Date | 7th March, 2025 |
About Balaji Phosphates Limited
Balaji Phosphates manufactures and supplies Single Super Phosphate (SSP) in powder and granular forms, NPK granular and blended fertilizers, and Zinc Sulphate, all of which are compliant with the standards of the Fertilizer Control Order of India.
The Company sells its products under the brand names ‘RATNAM’ and ‘BPPL’ to a diverse range of customers, including retailers, wholesalers and state-owned cooperatives. Farmers are the end users of the products. The Company’s products cater to farmers in Madhya Pradesh, Chhattisgarh, Maharashtra, Telangana and Andhra Pradesh, supporting local agricultural development.
The Company’s manufacturing unit is located at Dewa, Madhya Pradesh, covering an area of approximately 12,600 sq. m. As on March 31, 2024, its unit had installed capacities for manufacturing 1,20,000 MT per annum of Single Super Phosphate, 3,300 MT per annum of Zinc Sulphate and 49,500 MT per annum of NPK Granules.
The Company has extensive experience in the fertilizer industry. Its demonstrable manufacturing capability, coupled with its ability to carefully select quality dealers, ensures that its products are well represented in the market.
Risks
The Company is dependent on a few key customers for a significant portion of its sales. The loss of any one of its key customers for any reason could adversely affect its business.
Weather conditions such as drought, flood, cyclones and pest infestations affect the Company’s business. Bad weather, particularly in off-season, could lead to lower crop plantings, which could result in lower demand for the Company’s crop protection products.
The Company’s business demands a significant amount of working capital, with a substantial portion allocated to inventory management and trade receivables. Efficient working capital management is critical to its operations.
Disclaimer
All information published here is for educational and informational purposes only and should not be relied upon as the basis for investment decisions under any circumstances. Readers should consult a qualified financial advisor before making any actual investment decisions based on the information published here. Any reader who makes a decision based on the information published here does so entirely at his or her own risk. Investors should be aware that any investment in the equity market is subject to unpredictable market-related risks.
