Balaji Phosphates IPO
Balaji Phosphates Limited, a well-established company in the phosphates industry, is set to make its debut in the stock market with an Initial Public Offering (IPO). The company’s IPO is expected to attract significant investor interest, given its strong market presence, financial stability, and growth prospects. This article delves into the key aspects of the IPO, including company background, IPO details, financial performance, promoter details, and potential risks.
Balaji Phosphates Limited
Balaji Phosphates Limited was incorporated in 1996 as Balaji Phosphates Private Limited and later converted into a public limited company in 2023. Headquartered in Indore, Madhya Pradesh, the company specializes in the manufacturing and distribution of phosphates used in agriculture and industrial applications. Over the years, Balaji Phosphates has built a reputation for quality products and efficient operations, positioning itself as a key player in the industry.
Balaji Phosphates IPO Details
The IPO comprises a fresh issue of 59,40,000 equity shares and an offer for sale of 12,18,000 equity shares, totaling 71,58,000 shares. The face value of each equity share is Rs. 10, with a premium to be determined through the book-building process. The IPO is a 100% book-built offer and is being conducted per SEBI’s Issue of Capital and Disclosure Requirements (ICDR) regulations.
Balaji Phosphates IPO Timing
- Opening Date: February 28, 2025
- Closing Date: March 4, 2025
- Allotment Finalization: March 5, 2025
- Listing Date: March 7, 2025
Balaji Phosphates IPO Issue Details:
- Total Shares Offered: 7,158,000
- Fresh Issue: 5,940,000 shares
- Offer for Sale: 1,218,000 shares
- Issue Size: Approx Rs. 50.11 crore
- Fresh Issue: Approx Rs 41.58 crore
Balaji Phosphates IPO Price Band and Lot Size:
- Price Band- Rs. 66 To Rs. 70 per share
- Lot Size: 1 Lot has 2000 shares
Reservation Details:
- Qualified Institutional Buyers (QIB): Up to 30% of the offer
- Non-Institutional Investors (NII): At least 30% of the offer
- Retail Individual Investors (RII): At least 40% of the offer
Key Parties Involved:
- Book Running Lead Manager: Arihant Capital Markets Ltd
- Registrar: Skyline Financial Services Private Ltd
- Market Maker: NNM Securities Private Limited
Financial Performance
The financial strength of a company is crucial for investors considering an IPO investment. Balaji Phosphates has demonstrated stable financial performance, with consistent revenue growth and profitability. As per the Restated Financial Statements:
- Revenue Growth: The company has witnessed significant growth in revenue over the past three financial years.
- Profitability: The company has maintained a steady profit margin, ensuring strong financial stability.
- Capital Structure: The IPO proceeds are expected to be utilized for business expansion, working capital, and general corporate purposes.
A detailed analysis of the company’s financial performance can be found in the prospectus, highlighting key metrics such as EBITDA, PAT (Profit After Tax), and Return on Equity (ROE).
Promoters of the Balaji Phosphate Company
Balaji Phosphates Limited is promoted by Mr. Alok Gupta and Mr. Mohit Airen, who have been instrumental in the company’s growth and operational efficiency.
- Mr. Alok Gupta: A seasoned entrepreneur with extensive experience in the phosphate industry. His leadership has played a vital role in the company’s expansion and strategic decision-making.
- Mr. Mohit Airen: A business strategist focused on financial management and operational excellence. His expertise in scaling businesses has contributed to the company’s success.
Both promoters have a significant shareholding in the company and are actively involved in its strategic initiatives.
Risks and Challenges
While the IPO presents an exciting investment opportunity, investors should be aware of potential risks:
- Market Volatility: Since this is the company’s first public issue, there is no historical market price for its shares.
- Industry Risks: The company’s performance is subject to fluctuations in raw material prices and demand cycles in the phosphate industry.
- Regulatory Risks: Compliance with SEBI regulations and environmental laws may impact operations and costs.
- Competitive Landscape: The company operates in a competitive sector, requiring continuous innovation and efficiency improvements.
Balaji Phosphates Limited is headquartered in Indore, Madhya Pradesh, India. The company’s registered and administrative offices are located at:
Registered Office: 305, Utsav Avenue, 12/5, Ushaganj Jaora Compound, Indore (M.P.) 452001
Administrative Office: 305, Utsav Avenue, 12/5, Ushaganj Jaora Compound, Indore (M.P.) 452001
The primary manufacturing facility is situated in Dewas, Madhya Pradesh, with the following address:
Factory Address: 23B – 24A, Industrial Area No.1, A.B. Road, Dewas (M.P.) 452001
This facility specializes in producing various fertilizers, including Single Super Phosphate (SSP) in both powder and granulated forms, NPK Granulated and Mixed Fertilizers, and Zinc Sulphate. As of March 31, 2024, the plant’s installed production capacities are:
- Single Super Phosphate (SSP): 120,000 metric tons per annum
- Zinc Sulphate: 3,300 metric tons per annum
- NPK Granulated & Mixed Fertilizers: 49,500 metric tons per annum
These facilities collectively support the company’s mission to provide quality agricultural products and services across various regions.
Summary
The IPO of Balaji Phosphates Limited presents an attractive opportunity for investors looking to invest in a growth-oriented company with a strong market presence. With a well-defined business model, stable financials, and experienced promoters, the company is well-positioned to leverage market opportunities. However, investors should conduct thorough due diligence and consider the associated risks before making an investment decision.
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Disclaimer:
This blog is written only for educational and news purposes, investing in SME IPO is very risky take the independent advice from your financial advisor before investing. Here we are giving the information only about the company’s performance, Please verify the details before investing.