Balaji Phosphates Limited IPO, a Book Built Issue amounting to ₹50.11 Crores, has successfully closed its subscription period on March 4, 2025, with a final subscription of 1.33 times. The IPO, which included a Fresh Issue of 59.40 Lakh shares worth ₹41.58 Crores and an Offer for Sale (OFS) of 12.18 Lakh shares totaling ₹8.53 Crores, is now set for allotment finalization on March 5, 2025, and a tentative listing on NSE SME on March 7, 2025.

Balaji Phosphates IPO Price Band, Lot Size & Market Capitalization

The price band for the Balaji Phosphates IPO was ₹66 to ₹70 per share. Based on the upper price band of ₹70 per share, the Market Capitalization of Balaji Phosphates Limited is estimated at ₹166.44 Crores.

The lot size of the IPO was 2,000 shares per lot, requiring a minimum investment of ₹1,40,000 for retail investors. High-Net-Worth Individuals (HNIs) were required to invest in a minimum of two lots (4,000 shares), amounting to ₹2,80,000.

Balaji Phosphates IPO Subscription Status & Anchor Investors

Balaji Phosphates IPO saw a subscription of 1.33 times on its final day, indicating moderate investor interest. The company also secured ₹8.57 Crores from Anchor Investors at a price of ₹70 per share. The Anchor Investor bid date was February 27, 2025, and the company allotted 12,24,000 equity shares to these investors.

Grey Market Premium (GMP) & Expected Listing Gains

The Grey Market Premium (GMP) of Balaji Phosphates IPO was reported at ₹0, indicating no listing gain expectations. The GMP is based on market sentiment and unofficial trading in the grey market, which fluctuates based on demand and supply. Investors should note that GMP is purely speculative and does not guarantee actual listing performance.

IPO Allotment Date & Steps to Check Status Online

The IPO allotment date is set for March 5, 2025. Investors can check their allotment status through the Registrar's official website, Skyline Financial Services Private Limited.

How to Check Balaji Phosphates IPO Allotment Status Online:

1. Visit the IPO allotment status page on the Registrar's website
2. Select "Balaji Phosphates Limited IPO" from the dropdown menu
3. Enter your Application Number, PAN, or DP Client ID
4. Click Submit to check your allotment status

Company Overview & Business Model

Balaji Phosphates Limited is engaged in the manufacturing of NPK Granulated & Mixed Fertilizers and Zinc Sulfate (21%), specializing in Phosphate Fertilizers such as Single Super Phosphate (SSP) in powder and granulated forms. The company operates under the Fertilizer Control Order of India standards.

The company has a manufacturing facility in Dewas, Madhya Pradesh, with an installed capacity of 120,000 MTPA SSP and 3,300 MTPA Zinc Sulfate. The key revenue driver for the company is SSP fertilizers, catering to the growing demand in the Indian agriculture sector.

Promoters & Leadership

Balaji Phosphates is led by Alok Gupta and Mohit Airen.

• Mohit Airen (47) – Managing Director: A Commerce graduate with a Master’s in Business Economics from Devi Ahilya Vishwavidyalaya, Indore, and a Microsoft Certified Professional, he has over 20 years of corporate experience in the fertilizer industry.
• Alok Gupta – Director: A Commerce graduate from Devi Ahilya University, Indore (1997), he has more than 20 years of business experience and has been with the company since September 16, 2013.

Financial Performance & Valuation Metrics

The revenues from operations for Balaji Phosphates for recent fiscal periods are as follows:

• ₹5,484.66 Lakh (as of August 31, 2024)
• ₹15,168.02 Lakh (FY 2024)
• ₹14,464.12 Lakh (FY 2023)
• ₹12,411.72 Lakh (FY 2022)

The company has demonstrated steady revenue growth, with EBITDA figures of ₹572.55 Lakh (as of Aug 31, 2024), ₹1,209.70 Lakh (FY24), ₹1,167.20 Lakh (FY23), and ₹792.35 Lakh (FY22).

The Profit after Tax (PAT) for these periods is:

• ₹414.65 Lakh (Aug 31, 2024)
• ₹604.05 Lakh (FY24)
• ₹608.76 Lakh (FY23)
• ₹319.08 Lakh (FY22)

Key Performance Indicators & Valuation

• Pre-Issue EPS: ₹3.39
• Post-Issue EPS: ₹2.54
• Pre-Issue P/E Ratio: 20.65x
• Post-Issue P/E Ratio: 27.56x
• Industry P/E Ratio: 15x
• Return on Capital Employed (ROCE) FY24: 16.70%
• Return on Equity (ROE) FY24: 18.89%
• Return on Net Worth (RoNW) FY24: 17.26%

Based on these metrics, Balaji Phosphates IPO appears fully priced, with a high post-issue P/E ratio compared to the industry average.

Should You Invest in Balaji Phosphates IPO?

While Balaji Phosphates has shown steady financial growth, the valuation appears on the higher side, and the GMP suggests no significant listing gains. Given the moderate subscription demand and fully priced valuation, experts recommend avoiding the IPO for listing gains or long-term investment purposes.

Conclusion

Balaji Phosphates IPO has closed with a final subscription of 1.33x, with shares set to be listed on NSE SME on March 7, 2025. The IPO raised ₹8.57 Crores from Anchor Investors, but the lack of GMP and high P/E ratio suggest cautious investor sentiment. Investors should carefully evaluate the risks before investing in Balaji Phosphates IPO.

The Current active IPO is NAPS Global.

The Closed IPOs is Balaji Phosphates.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Update.