Upcoming IPO: Balaji Phosphates IPO opens on February 28; issue price band set at ₹66-70 apiece; check GMP | Stock Market News

Upcoming IPO: Balaji Phosphates Ltd IPO will open for subscription on Friday, February 28, and close on Tuesday, March 4. Balaji Phosphates IPO price band has been fixed in the range of ₹66 to ₹70 per equity share of face value of ₹10 each. Bids can be made for a minimum of 2,000 equity shares and in multiples of 2,000 equity shares thereafter.

The allocation of equity shares is as follows: the QIB Anchor Portion has been assigned a maximum of 12,24,000 equity shares; Qualified Institutional Buyers will receive up to 8,16,000 equity shares; Non-Institutional Investors will be allocated at least 20,40,000 equity shares; Retail Individual Investors will receive no less than 27,20,000 equity shares; and the Market Maker will be allotted 3,58,000 equity shares.

The firm is involved in producing and supplying Single Super Phosphate (SSP) in both powdered and granulated forms, alongside NPK Granulated and Mixed Fertilizers and Zinc Sulphate, all complying with the standards set by the Fertilizer Control Order of India. The company markets its products under the brand names ‘RATNAM’ and ‘BPPL’ to a wide array of clients, including retailers, wholesalers, and state-owned cooperatives, with farmers being the ultimate consumers of these products.

The company also has a 99.98% subsidiary named Jyoti Weighing Systems Pvt. Ltd. (JWSPL), which was formed on June 26, 1979, in accordance with the share purchase agreement dated October 5, 2020. JWSPL produces weighbridges with a capacity of up to 633MT and operates a facility in Dewas, adjacent to the company’s manufacturing site.

As per red herring prospectus (RHP), the company’s listed peers are Coromandel International Ltd (with a P/E of 30.57), Paradeep Phosphate Ltd (with a P/E of 77.23), and Rama Phosphate Ltd.

In the fiscal year 2024, the company recorded a revenue of ₹15,154.63 lakhs, an EBITDA of ₹1,209.70 lakhs, and a PAT of ₹604.05 lakhs. For the five-month period ending August 24, the company reported a revenue of ₹5,337.06 lakhs, EBITDA of ₹572.55 lakhs, and a PAT of ₹414.65 lakhs.

Balaji Phosphates IPO details

Balaji Phosphates IPO worth ₹50.11 crore, consists of a fresh issue of 59,40,000 equity shares, aggregating to ₹41.58 crore. There’s offer for sale (OFS) component of 12,18,000 equity shares totalling to ₹8.53 crore.

The funds generated from the IPO will be used for capital expenditures to set up a warehouse at the subsidiary’s factory, enhance existing facilities, cover working capital needs, and support general corporate objectives. The anchor portion is set to begin on February 27, 2025, and the issue will conclude on March 04, 2025.

“Our IPO represents a significant step forward, enabling us to expand our market presence, optimise productivity, and strengthen our foothold in the fertilizer industry, as well as foster the growth of our subsidiary. The funds raised will further support our expansion, enhance operational efficiency, and drive technological advancements. This IPO is more than just a financial milestone—it is a step toward sustainable growth, empowering us to drive long-term progress,” said Mohit Airen, Managing Director of Balaji Phosphates Ltd.

Arihant Capital Markets Limited is the Book Running Lead Manager for this issue, while Skyline Financial Services Private Limited serves as the Registrar for the issue.

Balaji Phosphates IPO GMP today

Balaji Phosphates IPO GMP or grey market premium was ₹0, which meant shares were trading at their issue price of ₹70 with no premium or discount in the grey market according to investorgain.com

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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