Fertiliser manufacturer Balaji Phosphates Limited is gearing up for its market debut with an initial public offering (IPO) worth ₹50.11 crores, comprising a fresh issue of 59.40 lakh shares and an offer for sale of 12.18 lakh shares. The subscription period runs from February 28, 2025, to March 4, 2025. Investors can follow the company's market journey as it prepares for its listing on the NSE SME platform on March 7, 2025.
Balaji Phosphates is offering equity shares with a face value of ₹10 each, priced within a band of ₹66 to ₹70 per share, with a lot size of 2,000 shares. Retail investors can enter with a minimum investment of ₹1,40,000 (1 lot), while High Net-worth Individuals (HNI) can subscribe with a minimum of ₹2,80,000 (2 lots). The IPO follows a swift timeline, with share allotment expected on March 5, 2025, ahead of its listing. As Balaji Phosphates makes its public market entry, investors have a chance to participate in the growth of a key player in India's agricultural and fertiliser sector.
Balaji Phosphates Limited IPO is a fundraising worth ₹50.11 crores comprising a combination of a fresh issue of 59.40 lakh shares and an offer for sale of 12.18 lakhs with 3,58,000 shares reserved for the market maker Nnm Securities Private Limited. Qualified Institutional Buyers are being offered not more than 30% of the net issue, retail investors are being offered not less than 40% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 30% of the net issue. The IPO will be available for subscription from February 28, 2025, to March 4, 2025, providing an opportunity for investors looking to gain a stake in the fertiliser manufacturer space.
| Balaji Phosphates IPO date | February 28, 2025 - March 4, 2025 |
| Price band | ₹66 to ₹70 per share |
| Face value | ₹10 per share |
| Lot size | 2000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 59,40,000 shares amounting to ₹41.58 crores |
| Offer for sale | 12,18,000 shares amounting to ₹8.53 crores |
| Total issue size | 71,58,000 shares amounting to ₹50.11 crores |
| Listing at | NSE SME |
| Market maker portion | 3,58,000 shares - Nnm Securities Pvt Ltd |
| Shareholding post-issue | 1,78,37,100 shares |
| Shareholding pre-issue | 2,37,77,100 shares |
The Balaji Phosphates Limited IPO opens for subscription on February 28, 2025, and closes on March 4, 2025, with allotment scheduled for March 5, 2025.
| IPO open date | February 28, 2025 (Friday) |
| IPO close date | March 4, 2025 (Tuesday) |
| Basis of allotment | March 5, 2025 (Wednesday) |
| Initiation of refunds | March 6, 2025 (Thursday) |
| Credit of shares to Demat account | March 6, 2025 (Thursday) |
| Listing date on NSE SME | March 7, 2025 (Friday) |
| Cut-off time for UPI mandate confirmation | 5 PM on March 4, 2025 (Tuesday) |
Incorporated in 1996, Balaji Phosphates Limited specialises in manufacturing and supplying Single Super Phosphate (SSP), NPK Granulated and Mixed Fertilisers, and Zinc Sulphate, all adhering to India's Fertiliser Control Order standards. The company markets its products under the brands ‘RATNAM’ and ‘BPPL,’ catering to retailers, wholesalers, and cooperatives, with farmers as the primary end users. Its fertilisers, including phosphate-based nutrients, enhance plant growth and soil fertility, supporting agricultural productivity.
With a manufacturing unit in Dewas, Madhya Pradesh, Balaji Phosphates operates with an annual production capacity of 120,000 MT for SSP, 3,300 MT for Zinc Sulphate, and 49,500 MT for NPK fertilisers. The company distributes its products across Madhya Pradesh, Chhattisgarh, Maharashtra, Andhra Pradesh, and Telangana. As of August 31, 2024, it employs 40 individuals across skilled labour, administrative, and management roles, ensuring smooth operations and quality production.
Balaji Phosphates Limited plans to utilise the net proceeds from the Fresh Offer to support its growth and operational efficiency. The funds will be allocated towards capital expenditure requirements, strengthening working capital, and addressing general corporate purposes. Additionally, the company aims to benefit from listing on the NSE Emerge platform, enhancing its market presence and expanding business opportunities.
The Balaji Phosphates Limited IPO’s the key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 18.89%, Return on Capital Employed (ROCE) at 16.7% and a Debt-to-Equity ratio of 0.95. The Return on Net-Worth (RoNW) stands at 17.26%, and the PAT Margin was 4%. The Price to Book Value was 3.57. The company’s market capitalisation is ₹166.44 crores.
| Period Ended | August 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 54.85 | 151.68 | 144.64 | 124.12 |
| Assets | 95.28 | 88.48 | 96.83 | 82.35 |
| Net Worth | 39.15 | 35 | 28.97 | 22.86 |
| Profit After Tax | 4.15 | 6.04 | 6.09 | 3.19 |
| Reserves & Surplus | 21.31 | 17.17 | 20.05 | 16.92 |
| Total Borrowing | 35.58 | 33.22 | 26.32 | 19.88 |
Amount in ₹ crores
The pre-IPO EPS is at ₹3.39 while the post-IPO EPS will be ₹4.19. Similarly, the pre-IPO Price to Earnings ratio is 20.67 and will become 16.72 post-IPO.
Balaji Phosphates Limited has established itself as a niche player in the fertiliser industry, with a stronghold in Single Super Phosphate (SSP) and zinc-based fertilisers. The company benefits from growing market demand, as balanced fertilisation practices drive increased SSP consumption. Its long-standing presence in the industry and extensive distribution network across Telangana, Madhya Pradesh, Chhattisgarh, Maharashtra, and Andhra Pradesh further strengthen its market reach. Additionally, the company’s strategic location in Dewas, Madhya Pradesh, offers logistical advantages, enabling efficient procurement of raw materials and distribution of finished products.
The company also benefits from backward integration, helping mitigate raw material supply risks, and aims to reduce its debt burden using IPO proceeds, improving financial health. Led by an experienced management team, Balaji Phosphates maintains strong relationships with key customers and suppliers, ensuring consistent demand and operational stability. Its integrated manufacturing capabilities support cost-effective production, quality assurance, and timely delivery, providing a competitive edge in the fertiliser sector.
Despite its strengths, Balaji Phosphates faces profitability challenges due to historical losses and operational uncertainties. Rising expenses related to hiring, marketing, and infrastructure may further impact margins. The company is also vulnerable to fluctuations in raw material costs, particularly for key inputs like rock phosphate and sulfuric acid, which are subject to global pricing trends. Any disruptions in the supply chain or adverse price movements could significantly affect production costs and profitability. Additionally, regulatory changes, including government policies on fertiliser subsidies, could impact the sector and the company’s financial performance.
The company’s revenue is concentrated among a few key customers, posing risks if any major client reduces or discontinues purchases. Expansion efforts introduce further challenges, including optimising sales, marketing, and production, which could affect overall efficiency. Furthermore, as Balaji Phosphates operates primarily in select states, any adverse economic, social, or environmental changes in these regions could disrupt business. Climate risks, such as unpredictable weather patterns affecting agricultural demand, also pose a significant threat to the company's long-term growth and stability.
Being among the early public investors in Balaji Phosphates Limited could present an opportunity to participate in the company's growth trajectory in the space of fertiliser manufacturing. However, investors should carefully assess multiple factors including the company's operational track record, financial health, sector dynamics, and growth strategy, while also considering their investment objectives and risk appetite before making an investment decision. It's recommended to review the offer document and seek professional advice if needed to make an informed choice about participating in this IPO.
What is the Balaji Phosphates Limited IPO?
Balaji Phosphates Limited is set to launch its NSE SME IPO, offering 71.58 lakh equity shares with a face value of ₹10 each, aiming to raise ₹50.11 crore. The price range for the issue has been set between ₹66 to ₹70 per share, with a minimum lot size of 2,000 shares. The IPO subscription will be open from February 28, 2025, to March 4, 2025, providing investors an opportunity to be part of the company's growth as it enters the public market. Arihant Capital Markets Limited is the book-running lead manager for the IPO, with Skyline Financial Services Private Limited serving as the registrar, and NNM Securities Private Limited acting as the market maker.
When will the Balaji Phosphates IPO open?
The Balaji Phosphates Limited IPO will open for subscription on February 28, 2025, and will close on March 4, 2025.
When is the Balaji Phosphates IPO listing date?
The tentative listing date for the Balaji Phosphates Limited IPO is Friday, March 7, 2025.
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