Balaji Phosphates Ltd, a manufacturer of NPK Granulated & Mixed Fertilizers and Zinc Sulfate (21%), is launching its Initial Public Offering (IPO). The company primarily focuses on Phosphate Fertilizers, including Single Super Phosphate (SSP) in both powder and granulated forms, adhering to the Fertilizer Control Order of India standards.

Balaji Phosphates IPO Details

• IPO Size: ₹ 50.11 Crores

• Fresh Issue: 59.40 Lakh Shares (₹ 41.58 Crores)

• Offer for Sale: 12.18 Lakh Shares (₹ 8.53 Crores)

• Price Band: ₹ 66 - ₹ 70 per share

• Market Capitalization: ₹ 166.44 Crores (at upper price band)

• Lot Size: 2,000 shares

• Retail Investment Minimum: ₹ 1,40,000 (1 lot)

• HNI Investment Minimum: ₹ 2,80,000 (2 lots)

• Listing: NSE SME

• Lead Manager: Arihant Capital Markets Ltd

• Registrar: Skyline Financial Services Pvt. Ltd.

• Market Maker: Nnm Securities Pvt. Ltd.

IPO Subscription & GMP

• Subscription Period: February 28 - March 4, 2025

• Allotment Date: March 5, 2025

• Listing Date: March 7, 2025

• Live Subscription (March 3, 2025, 5:30 PM): 0.65x subscribed

• Grey Market Premium (GMP): ₹ 0 (No premium expected)

Financial Performance

Balaji Phosphates has demonstrated steady revenue growth over the years.

Valuation & Performance Metrics

• Pre-Issue EPS: ₹ 3.39 | Post-Issue EPS: ₹ 2.54

• Pre-Issue P/E: 20.65x | Post-Issue P/E: 27.56x (Industry P/E: 15x)

• ROCE: 16.70% | ROE: 18.89% | RoNW: 17.26%

• Annualized EPS: ₹ 5.57 | PE Ratio: 12.57x

Anchor Investors & Allocation

Balaji Phosphates raised ₹ 8.57 Crores from Anchor Investors at ₹ 70 per share. The company allocated 12,24,000 equity shares to these investors.

IPO Allotment & Listing Guide

Investors can check their IPO allotment status via the registrar's website by:

1. Visiting the IPO allotment status page.

2. Selecting Balaji Phosphates IPO from the list.

3. Entering Application No., PAN, or DP Client ID.

4. Clicking Submit to view allotment results.

Use of IPO Proceeds

The net proceeds from the IPO will be used for:

1. Capital expenditure: ₹ 12.87 Crores

2. Working capital requirements: ₹ 19.00 Crores

3. General corporate purposes

Balaji Phosphates IPO Review & Investment Outlook

• Financial Growth: The company has shown consistent revenue and profit growth, but margins remain under pressure.

• Valuation: At a 27.56x post-issue P/E, the IPO is fully priced compared to the industry average of 15x.

• GMP & Listing Outlook: With zero GMP, weak listing gains are expected.

• Long-term Potential: Competitive industry, margin pressure, and overvaluation raise concerns.

Review: Avoid for Listing Gains

Given the high valuation and weak demand in the grey market, investors should avoid Balaji Phosphates IPO for short-term gains. Long-term investors should assess the company’s post-listing performance before making commitments.

The Upcoming IPOs in this week and coming weeks are  NAPS Global.

The Current active IPO are Balaji Phosphates.

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