Balaji Phosphates Limited, a leading manufacturer of phosphate fertilizers, is launching its Initial Public Offering (IPO) on February 28, 2025, with a price band of ₹66 to ₹70 per share. The IPO will be available for subscription until March 4, 2025, and the allotment will be finalized on March 5, 2025. Investors can expect the shares to be listed on the NSE SME exchange on March 7, 2025.

The IPO size amounts to ₹50.11 crores, consisting of a fresh issue of ₹41.58 crores and an offer for sale (OFS) worth ₹8.53 crores. Arihant Capital Markets Limited is the Book Running Lead Manager (BRLM), while Skyline Financial Services Private Limited serves as the registrar. NNM Securities Private Limited has been appointed as the market maker.

Company Overview and Business Model

Balaji Phosphates Ltd specializes in NPK Granulated and Mixed Fertilizers and Zinc Sulfate (21%). However, its primary focus remains on phosphate-based fertilizers, particularly Single Super Phosphate (SSP), which is produced in both powder and granulated forms. The company strictly adheres to the Fertilizer Control Order (FCO) of India standards.

The manufacturing plant is located in Industrial Area No.1, Dewas, Madhya Pradesh, and has a production capacity of 120,000 MTPA for SSP and 3,300 MTPA for Zinc Sulfate. With SSP being the key revenue driver, the company plays a crucial role in the agricultural sector.

Balaji Phosphates IPO Investment Details

• Lot Size: The minimum investment lot for retail investors is 2,000 shares, requiring an investment of ₹1,40,000. High-Net-Worth Individuals (HNIs) need to invest in 2 lots (4,000 shares), amounting to ₹2,80,000.
• Market Capitalization: At the upper price band of ₹70 per share, the company's market capitalization will stand at ₹166.44 crores.
• Anchor Investors: The company raised ₹8.57 crores from anchor investors on February 27, 2025, with shares allocated at ₹70 per share.

Balaji Phosphates IPO Subscription Status & GMP

The Grey Market Premium (GMP) for Balaji Phosphates IPO is currently reported at ₹0, indicating no unofficial price movement before listing. However, GMP trends may change depending on demand and market conditions.

Balaji Phosphates IPO Subscription Timeline

How to Check Balaji Phosphates IPO Allotment Status

Investors can check their IPO allotment status by following these steps:

1. Visit the Registrar’s Website (Skyline Financial Services Pvt. Ltd.).
2. Select "Balaji Phosphates IPO" from the list of available IPOs.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to view allotment status.

Balaji Phosphates Financial Performance

Balaji Phosphates has shown steady revenue growth over the years. Below are key financial highlights:

• The company's Return on Capital Employed (ROCE) for FY24 stands at 16.70%, while Return on Equity (ROE) is 18.89%.
• The Pre-Issue EPS is ₹3.39, and Post-Issue EPS is ₹2.54, indicating dilution in earnings.
• The Pre-Issue P/E Ratio is 20.65x, and the Post-Issue P/E Ratio is 27.56x, which is higher than the industry average of 15x.

Utilization of IPO Proceeds

Balaji Phosphates aims to use the net proceeds from the IPO as follows:

1. ₹1,287.90 Lakhs for capital expenditure.
2. ₹1,900.00 Lakhs for working capital requirements.
3. The remaining funds will be utilized for general corporate purposes.

Balaji Phosphates IPO Review: Should You Invest?

Considering the company's financial performance, valuation, and industry trends, the IPO appears to be fully priced. The high P/E ratio compared to industry standards suggests that the stock may not offer substantial listing gains.

Additionally, the zero GMP indicates weak grey market demand, which may affect listing-day performance. Investors seeking short-term listing gains may avoid this IPO, while long-term investors should evaluate growth potential before making a decision.

Final Verdict

• Short-Term Investors: The IPO may not provide significant listing gains due to high valuation.
• Long-Term Investors: Given the steady financials and phosphate fertilizer industry growth, investors should assess the company's future potential before committing.

With its strong market presence, experienced management, and steady growth, Balaji Phosphates Limited IPO remains an option for investors looking for exposure to the agricultural fertilizer sector. However, given the current valuation, caution is advised before making investment decisions.

The Upcoming IPOs in this week and coming weeks are Balaji Phosphates.

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