Indian Phosphate shares made a remarkable debut on the NSE, trading at Rs 178.70, a significant 80.51% premium over the issue price of Rs 99. The scrip initially listed at Rs 188.10, showcasing a 90% premium over its initial public offer (IPO) price. However, the stock has now reached its lower limit of 5% over the listing price, indicating some profit booking from early investors.

The shares saw a trading range between Rs 197.50 and Rs 178.70, with a substantial 18.95 lakh shares changing hands during the session. This activity underscores the strong interest in Indian Phosphate's market performance post-IPO.

Indian Phosphate's IPO, which opened for bidding on 26 August 2024 and closed on 29 August 2024, was a resounding success, being subscribed 186.47 times. This overwhelming response from the market reflects investor confidence in the company’s growth prospects and the attractive price band of Rs 94 to Rs 99 per share.

The IPO included a fresh issue of 68,04,000 equity shares, leading to a dilution in promoter and promoter group shareholding from 100% pre-issue to 72.77% post-issue. The company aims to utilize the net proceeds from the IPO to meet working capital requirements and fund the establishment of a new manufacturing facility at SIPCOT Industrial Park Phase-I, Kudikadu Village, Cuddalore District, Tamil Nadu. This facility will focus on the production of Sulphuric Acid, LABSA 90%, and Magnesium Sulphate. Additionally, the funds will be used for general corporate purposes, strengthening the company’s financial position for future growth.

Ahead of its listing, Indian Phosphate raised Rs 19.09 crore from anchor investors on 23 August 2024. The company allotted 19.28 lakh shares at Rs 99 per share to 13 anchor investors, securing a solid financial base before the public offering.

Indian Phosphate is a leading producer of Linear Alkylbenzene Sulphonic Acid (LABSA 90%), an anionic surfactant widely used in detergent powders, cakes, toilet cleaners, and liquid detergents. The company also manufactures single super phosphate (SSP) fertilizer and granules single super phosphate (GSSP) fertilizer, which meet India's fertilizer control order standards. These fertilizers, available in powder, granulated form, and fortified with zinc and boron, play a crucial role in the agriculture industry, enhancing crop yield and soil health.

The company operates from its manufacturing facility located in Umarda, Girwa district, Udaipur, Rajasthan, strategically positioned near the supply of essential raw materials like Sulphuric Acid 98% and Rock Phosphate. Indian Phosphate sources Linear Alkylbenzene (LAB) from major suppliers such as IOCL, Nirma, and Reliance Industries. As of 31 March 2024, Indian Phosphate employed a total of 105 employees, ensuring efficient operations and consistent product quality.

For the fiscal period ending 31 March 2024, Indian Phosphate reported a revenue from operations of Rs 704.17 crore and a net profit of Rs 13.47 crore. This financial performance highlights the company’s strong market position and its potential for sustained growth in the highly competitive chemical and fertilizer industry.

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