Balaji Phosphates Limited, a prominent producer of phosphate-based fertilisers, will launch its Initial Public Offering (IPO) on February 28, 2025. The ₹50.11 crores offer comprises a fresh issue of 59.40 lakh shares worth ₹41.58 crores and an Offer-for-Sale (OFS) of 12.18 lakh shares amounting to ₹8.53 crores.
The price band has been fixed between ₹66 and ₹70 per equity share, and the subscription window will remain open until March 4, 2025. The shares are scheduled to be listed on the NSE SME platform on March 7, 2025.
IPO schedule and structure
The IPO will open for public subscription on February 28, 2025, and close on March 4, 2025. It is a book-built issue, consisting of a fresh issue of 59.40 lakh shares worth ₹41.58 crores and an OFS of 12.18 lakh shares amounting to ₹8.53 crores. The shares are priced between ₹66 and ₹70 per equity share.
The company has reserved 40% of the net offer for retail investors, 30% for non-institutional investors (NIIs), and 30% for qualified institutional buyers (QIBs). Retail investors can apply for a minimum lot size of 2,000 shares, requiring an investment of ₹1,32,000. The proceeds from the IPO will be used to meet capital expenditure requirements, working capital needs, and general corporate purposes.
Skyline Financial Services Limited is the registrar. The basis of allotment will be finalised on March 5, 2025. The shares will debut on the NSE SME platform on March 7, 2025.
About Balaji Phosphates Limited
Balaji Phosphates Limited is a leading manufacturer of phosphate-based fertilisers, including Single Super Phosphate (SSP) in granulated and powdered forms, NPK granulated and mixed fertilisers, and Zinc Sulphate. These products enhance soil fertility and support plant growth by addressing nutrient deficiencies such as zinc, phosphorus, potassium, and nitrogen.
The company sells its products across multiple states, including Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Maharashtra, and Telangana. Its manufacturing facility is located in Dewas, Madhya Pradesh.
Considerations before applying
Before deciding to apply for an IPO online, investors should evaluate the company's financial performance, including revenue growth, profitability, and debt levels. Understanding the fertiliser industry's trends, demand-supply dynamics, and regulatory environment is also essential.
Additionally, investors should assess how the company plans to use the IPO proceeds and whether this aligns with its long-term growth strategy. Comparing Balaji Phosphate Limited's valuation with industry peers can help determine whether the IPO pricing is reasonable. Identifying potential risks, such as fluctuations in raw material prices, changes in government policies, and environmental regulations, is also crucial before making an investment decision.
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