Indian Phosphate IPO: Review, Valuation, Date & GMP

Indian Phosphate IPO-Complete Overview

Indian Phosphate IPO an SME IPO is a book-built issue of Rs.67.36 crore by Indian Phosphate Ltd. which was founded in 1998 and is a producer of LABSA, or Linear Alkyl Benzene Sulfonic Acid, 90%. LABSA is an anionic surfactant that is used in the formulation of various washing powders, cakes, toilet cleaners, and liquid detergents.

Besides, in consistency with the Compost Control Guideline of India, the organization fabricates "Single Super Phosphate" (SSP) and "Granules Single Super Phosphate" (GSSP), which are braced with Zinc and Boron and delivered and provided in powder and granule structure.

The Girwa area of Udaipur, Rajasthan, is home to the organization's assembling manufacturing plant, which is found near the two crude fixings expected to make the Rock Phosphate and 98% Sulfuric Acid. The suppliers of Linear Alkyl Benzene (LAB), another crucial raw ingredient, include Reliance Industries Ltd. in Patalganga, Nirma Ltd. in Vadodara, and IOCL in Vadodara.

Major states including Punjab, Bihar, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Himachal Pradesh, West Bengal, and Uttarakhand are home to Indian Phosphate Ltd.

Its new SME IPO is to be launched on 26 August 2024, and its ‘initial public offering’ will end on 29 August 2024.

Indian Phosphate IPO Overview

The Rs.67.36 crore Indian Phosphate Ltd. IPO consists of a fully fresh issue of 68.04 lac Shares, of which 35% are allowed to retail investors, 50% to institutional investors, and 15% to non-institutional investors.

This SME IPO date is from August 26-August 29, 2024. The expected IPO listing date is Tuesday, 3 September 2024, on NSE and SME. Indian Phosphate IPO price band is Rs.94 to Rs.99 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue was reduced by 7% and PAT was decreased by 27% during FYs ending 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.25,518.6 lac.

• The total revenue of the company is Rs.71,757.81 lac.

• The net worth of the company is Rs.8,099.06 lac.

• The company’s EBITDA is Rs.2303.42 lac.

(Amount in Lac)

 

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown

(Amount in lac)

 

State-wise Revenue Breakdown

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To establish a new manufacturing plant at Plot No. C-17/A, Tamil Nadu, SIPCOT Industrial Park Phase-I, Kudikadu Village, Cuddalore District ('C' District), in order to produce Sulfuric Acid, LABSA 90%, and Magnesium Sulphate.

• To fulfill working capital needs.

• General corporate purposes.

Peers of Indian Phosphate Ltd.

Evaluation

The IPO price is Rs.94 to Rs.99 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.7.41 from the last year, the resulting P/E ratio is 13.36x.

Considering the weighted EPS of Rs.8.23 for the last three years, the P/E ratio is 12.02x.Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is Negative.

The P/E ratio of the industry is Negative hence it can not be said if the company has undervaluation or valuation on the basis of the P/E ratio. 

IPO's Strengths 

• Encouraging sourcing and strategic location of the manufacturing unit.

• Assured quality.

• Utilizing the knowledge of our managers and promoters.

• Diversification and forward integration.

IPO’s Weaknesses

• Fertilizer is one of its business verticals, and its success depends on how well the agriculture industry, where its fertilizers are used, performs. Any changes that impact the agricultural sector's success are likely to have an impact on the company.

• In India, the fertilizer industry functions within a set of regulations. Any changes to agricultural-related government regulations or a reduction in the incentives and subsidies provided to farmers could have a detrimental effect on the company's operations and financial results.

• Farmers' resistance to crop protection chemicals and their improper use of its products could harm their operations, financial situation, and business.

• The company had a negative cash flow from its operating, investing, and financing activities in the past three years, sustained negative cash flow could impact its growth and business.

 

Indian Phosphate IPO GMP Today

Its IPO GMP today is Rs.50 as of 23 August 2024. With a price band of Rs.99, the Indian Phosphate IPO's listing price (estimated) is Rs.149.

IPO Timetable (Tentative)

The IPO date is from August 26 to August 29, 2024, with allotment on August 30, refund initiation on September 02, and listing on September 03, 2024.

 

 

 

Indian Phosphate IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 26, 2024, close on August 29, 2024, and offer a total issue size of 6,804,000 Shares (aggregating up to Rs.67.36 Cr) comprising a whole fresh issue size of 6,804,000 Shares (totaling up to Rs.67.36 Cr).

Indian Phosphate IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,18800 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,37600.

 

Indian Phosphate IPO Reservation

Promoters And Management of Indian Phosphate Ltd.

• Mr. Ravindra Singh

• Mrs. Mamta Arora,

• Mr. Rushil Arora.

IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd.

Dividend Policy

The company has not paid dividends in the last three years.

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the upcoming IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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