Indian Phosphate Limited specializes in producing Linear Alkylbenzene Sulphonic Acid (LABSA 90%), an essential anionic surfactant used in a variety of cleaning products, including detergent powders, cakes, toilet cleaners, and liquid detergents. The company is gearing up for its Initial Public Offering (IPO), set to open from August 26, 2024, to August 29, 2024. This article delves into the IPO details, financial performance, and investment insights.

IPO Details

The Indian Phosphate IPO involves a Fresh Issue of ₹67.35 crores, with shares priced between ₹94 and ₹99. The minimum lot size for the IPO is 1,200 shares. Retail investors need to invest at least ₹118,800, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹237,600 for 2,400 shares. The allotment is expected to be finalized on August 30, 2024, with the listing set for September 3, 2024, on the NSE SME platform.

Grey Market Premium (GMP)

The Grey Market Premium for the Indian Phosphate Limited IPO is anticipated to range from ₹45 to ₹50. While GMP provides a sense of market sentiment, it is based on informal trading and does not guarantee the actual listing price. The premium reflects the demand and supply in the unregulated market, and should be used for informational purposes only.

Live Subscription Status

As of 2:10 PM on August 26, 2024, the IPO has been subscribed 6.24 times on its first day. This high level of subscription indicates strong investor interest. For real-time updates, investors can check the live subscription status on the NSE website.

Allotment Status

Investors can check their allotment status on the registrar's website starting August 30, 2024. To verify allotment:

Visit the IPO allotment status page.

Select Indian Phosphate Limited IPO from the dropdown list.

Enter the application number, PAN, or DP Client ID.

Submit the details to view the allotment status.

Company Overview

Indian Phosphate Limited is led by a proficient management team, including Mr. Ravindra Singh, a key promoter driving the company’s success. The company focuses on producing high-quality LABSA 90%, crucial for various cleaning products, and is set to expand its operations.

Also Read: Jay Bee Laminations Limited IPO subscribed 8.07 times on Day 2. Check GMP & details

Financial Performance

Indian Phosphate has demonstrated stable financial performance. Revenue increased from ₹55,838.56 Lakhs in FY22 to ₹70,625.53 Lakhs in FY24. EBITDA remained relatively stable, with figures of ₹2,362.15 Lakhs in FY22 and ₹2,303.42 Lakhs in FY24. PAT has been consistent, moving from ₹1,616.61 Lakhs in FY22 to ₹1,347.32 Lakhs in FY24.

The IPO offers shares with a pre-issue EPS of ₹7.41 and a post-issue EPS of ₹5.39. The pre-issue P/E ratio stands at 13.36x, while the post-issue P/E ratio is 18.36x, compared to the industry average of 41.31x. The company's ROCE for FY24 is 20.94%, and ROE is 18.14%, indicating solid performance and effective use of capital.

Investment Recommendation

Considering the financial stability and the Grey Market Premium, the Indian Phosphate Limited IPO appears to be fairly priced with potential listing gains of 45% - 50%. Investors seeking short-term gains or long-term investment opportunities should consider applying for this IPO. It's advisable to conduct thorough due diligence and assess risk tolerance before investing.

Conclusion

The Indian Phosphate Limited IPO offers a compelling investment opportunity with its strong financial track record and promising growth potential. Investors are encouraged to stay informed about the IPO's progress and make decisions based on their investment goals and risk profile.

Also Read: Premier Energies Limited IPO Subscribed 1.78, GMP Soars; Should you subscribe or skip

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