Balaji Phosphates IPO: Date, Price, GMP and More

Balaji Phosphates IPO-Complete Overview

Balaji Phosphates IPO under the SME IPO category is a book-build issue of Rs.50.11 Cr (71,58,000 Shares) by Balaji Phosphates Limited, which was incorporated in 1996. The company started the production of Single Super Phosphate (SSP), NPK Granulated and Mixed Fertilisers, and Zinc Sulphate with registration to the Fertiliser Control Order of India.

The company sells to selected customers such as retailers, wholesalers, cooperatives, and directly to farmers under the brand names ‘RATNAM’ and ‘BPPL’.

The agricultural gold portfolio contains phosphate fertilizers like SSP, zinc sulphate, and NPK mix for the development of areas of intensive agriculture. The company's products are actively marketed in the states of Madhya Pradesh, Chhattisgarh, Maharashtra, Andhra Pradesh and Telangana.

The company is located in Dewas, Madhya Pradesh. As of 31st March 2024, the company had an installed capacity of 120,000 MT per annum for Single Super Phosphate, 3,300 MT for Zinc Sulphate, and 49,500 MT for NPK Granulated & Mix.

 

Balaji Phosphates Limited IPO Overview

This new SME IPO comprises a combination of a fresh issue of 59.40 lac Shares (Rs.41.58 Cr) and an offer for sale of 12.18 lac Shares (Rs.8.53 Cr). The Balaji Phosphates Limited IPO date is from 28 Feb to 04 Mar 2025.

This upcoming IPO i.e. the Balaji Phosphates IPO Price is Rs.66 to Rs.70 per Share. The listing date is 07 Mar 2025 at NSE and SME.

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Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

 

Geography-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

The Objective of The Issue

• To fulfill the requirements for capital expenditures.

• To fulfill the requirements for working capital.

• General corporate purposes.
  
  

Peers of Balaji Phosphates Ltd.

 

Evaluation

The IPO price is Rs.66 to Rs.70 for each Share.

Evaluation of the P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.39 from the last year, the resulting P/E ratio is 20.65x.

Considering the weighted EPS of Rs.3.13 for the last three years, the P/E ratio is 22.36x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 53.90x.

In simple words, the P/E ratio of this IPO (20.65x), compared with the industry’s average P/E of 53.90x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Long history in the fertilizer industry.

• Extensive network throughout the states of Telangana, M.P., Chhattisgarh, Maharashtra, and A.P..

• The firm has a competitive edge due to its advantageous location in Dewas, Madhya Pradesh.

• Seasoned and long-standing managerial group.

 

IPO’s Weaknesses

• The business activities of the company are strongly correlated with the agricultural sector which is dependent on the monsoon, soil quality, cropping pattern, and credit availability to the farmer. Any negative changes in these parameters can adversely affect the demand for fertilizers and the company’s financial results.

• The company imports raw materials such as Rock Phosphate and Sulphuric Acid from countries like Jordan, Morocco, and Egypt. Disruption of supply chains, changes in pricing, or heightened adversarial relations in these areas could affect the costs of production and profitability.

• The company suffers risks from customer payment delays or defaults that may lead to cash flow mismatches. The inability to meet such timelines could harm working capital and overall operational efficiency.

• The core operations of the Company are concentrated in a few states including M.P, Chhattisgarh, Maharashtra, Telangana, and A.P. Any negative changes at an economic, social, or environmental level in the above areas may impact the revenue and operations to a great extent.
  
  

Balaji Phosphates IPO GMP 

Balaji Phosphates IPO GMP is Rs.0 as of 24 Feb 2025.

IPO Timetable (Tentative)

The Balaji Phosphates IPO date is 28 Feb with tentative allotment on 05 Mar, refund initiation on 06 Mar, and listing on 07 Mar 2025.

 

Balaji Phosphates IPO Details

The IPO with a Face Value of Rs.10 per share, offers a total issue size of 71,58,000 Shares (Rs.50.11 Cr).

 

Balaji Phosphates IPO Lot Details 

The Balaji Phosphates IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.140000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.280000.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Balaji Phosphates Ltd.

• Mr. Alok Gupta

• Mr. Mohit Airen.
  
  

 

IPO Lead Managers

Arihant Capital Markets Ltd.

Dividend Policy

The company has not paid a dividend since its inception.

Conclusion

The company hopes to raise a fund of Rs.50.11 Cr through a Balaji Phosphates IPO. While the company succeeds in establishing itself within the fertiliser sector, it operates at risks including but not limited to, heavy reliance on domestic agriculture and imported raw materials. Investors should consider the potential and risks involved before making an investment decision.

DISCLAIMER: NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

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