Balaji Phosphates Limited is launching an Balaji Phosphates Ltd IPO to raise fresh capital and allow existing shareholders to sell their stakes. The key details of the IPO are as follows:
Balaji Phosphates Limited, established on April 4, 1996, specializes in manufacturing and supplying phosphate-based fertilizers, including Single Super Phosphate (SSP) in both powdered and granulated forms, NPK Granulated and Mixed Fertilizers, and Zinc Sulphate.
These products, marketed under the brand names ‘RATNAM’ and ‘BPPL’, are designed to enhance soil health and crop yields by addressing phosphorus and zinc deficiencies in various soil types.
The company’s manufacturing facility is located in Dewas, Madhya Pradesh, covering 12,600 square meters, and it serves agricultural markets across Madhya Pradesh, Chhattisgarh, Maharashtra, Telangana, and Andhra Pradesh.
Balaji Phosphates Ltd IPO Key Dates:
- Issue Opening Date: February 28, 2025
- Issue Closing Date: March 4, 2025
- Basis of Allotment Finalization: March 5, 2025
- Listing Date: March 7, 2025
- Issue Size: The IPO comprises up to 71,58,000 equity shares with a face value of ₹10 each, including a fresh issue of up to 59,40,000 equity shares and an offer for sale of up to 12,18,000 equity shares by existing shareholders.
- Price Band: The shares are priced between ₹66 to ₹70 per equity share.
- Listing: The shares are proposed to be listed on the NSE.
- Allocation: The offer includes a reservation of 3,58,000 equity shares for the market maker portion.
Financially, Balaji Phosphates reported a revenue of ₹151.68 crores in 2024, up from ₹144.64 crores in 2023. The net profit for 2024 stood at ₹6.04 crores, slightly down from ₹6.09 crores in 2023.
Investors can apply for the IPO through ASBA online via their bank accounts. The minimum bid details and lot size are yet to be specified.
For more information, you can contact the company’s registered office at 305, Utsav Avenue, 12/5, Usha Ganj Jaora Compound, Indore G.P.O., Indore (Madhya Pradesh)- 452001, or via email at [email protected].
Who is the Owner of Balaji Phosphates Limited
Balaji Phosphates Limited is a private company incorporated on April 4, 1996. The current board of directors includes:
- Alok Gupta
- Mohit Airen
- Surabhi Agrawal
- Nupur Lodwal
These individuals are responsible for the company’s strategic direction and operations. Specific details regarding ownership stakes are not publicly disclosed. For the most accurate and up-to-date information, it’s advisable to consult the company’s official communications or regulatory filings.
About Balaji Phosphates Ltd
Balaji Phosphates Limited is an Indian company engaged in the manufacturing and supply of phosphate-based fertilizers. Established on April 4, 1996, the company plays a significant role in the agricultural sector by providing essential soil nutrients.
Key Details:
Products:
- Single Super Phosphate (SSP) (Powder & Granulated)
- NPK Granulated & Mixed Fertilizers
- Zinc Sulphate
Brand Names:
- Marketed under ‘RATNAM’ and ‘BPPL’
Manufacturing Facility:
- Located in Dewas, Madhya Pradesh
- Spread over 12,600 square meters
Market Presence:
- Operates in Madhya Pradesh, Chhattisgarh, Maharashtra, Telangana, and Andhra Pradesh
Financial Performance:
- Revenue (2024): ₹151.68 crores
- Net Profit (2024): ₹6.04 crores
Company Objective:
Balaji Phosphates aims to enhance soil health and agricultural productivity by addressing phosphorus and zinc deficiencies in various soil types.
Financial Performance:
In the fiscal year 2024, Balaji Phosphates reported a revenue of ₹151.68 crores, an increase from ₹144.64 crores in 2023. The net profit for 2024 was ₹6.04 crores, slightly down from ₹6.09 crores in 2023.
Investment Considerations:
The company’s consistent revenue growth indicates a stable market position. However, the marginal decline in net profit suggests potential challenges in managing expenses or market fluctuations. Investors should assess the company’s financial health, market trends in the fertilizer industry, and the broader economic environment before making investment decisions.
Balaji Phosphates Ltd IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Minimum) | 1 | 2,000 | ₹1,40,000 |
| Retail (Maximum) | 1 | 2,000 | ₹1,40,000 |
| HNI (Minimum) | 2 | 4,000 | ₹2,80,000 |
Balaji Phosphates Limited Financial Information
| Period Ended | 31 Aug 2024 | Mar 31 2024 | 31 Mar 2023 | Mar 31 2024 |
| Assets | ₹95.28 Crores | ₹88.48 Crores | ₹96.83 Crores | ₹82.35 Crores |
| Revenue | ₹54.85 Crores | ₹151.68 Crores | ₹144.64 Crores | ₹124.12 Crores |
| Profit After Tax | ₹4.15 Crores | ₹6.04 Crores | ₹6.09 Crores | ₹3.19 Crores |
| Net Worth | ₹39.15 Crores | ₹35 Crores | ₹28.97 Crores | ₹22.86 Crores |
| Reserves and Surplus | ₹21.31 Crores | ₹17.17 Crores | ₹20.05 Crores | ₹16.92 Crores |
| Total Borrowing | ₹35.58 Crores | ₹33.22 Crores | ₹26.32 Crores | ₹19.88 Crores |
Key Performance Indicator
| KPI | Values |
| ROE | 18.89% |
| ROCE | 16.7% |
| Debt/Equity | 0.95 |
| RoNW | 17.26% |
| PAT Margin | 4.00 |
| Price to Book Value | 3.57 |
Balaji Phosphates Ltd IPO Objects of the Issue
Balaji Phosphates Limited is launching an Initial Public Offering (IPO) with the primary objectives of:
- Raising Fresh Capital: The company aims to generate funds through the issuance of new equity shares.
- Providing an Exit Opportunity for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing current shareholders to divest a portion of their holdings.
- Repayment or Prepayment of Borrowings: Reducing the company’s debt obligations to strengthen the balance sheet.
- Funding Working Capital Requirements: Ensuring adequate liquidity for day-to-day operations and supporting business growth.
- General Corporate Purposes: Addressing miscellaneous corporate needs as they arise.
These objectives are outlined in the company’s Draft Red Herring Prospectus (DRHP) filed with regulatory authorities.
Strengths of Balaji Phosphates Ltd IPO:
1) Established Market Presence: Founded in 1996, Balaji Phosphates has a long-standing presence in the phosphate-based fertilizer industry, indicating experience and stability.
2) Diverse Product Portfolio: The company offers a range of products, including Single Super Phosphate (SSP) in both powdered and granulated forms, NPK Granulated and Mixed Fertilizers, and Zinc Sulphate. This diversity caters to various agricultural needs.
3) Strategic Manufacturing Location: Operating from a facility in Dewas, Madhya Pradesh, Balaji Phosphates is well-positioned to serve key agricultural markets in central India.
4) Recognized Brands: Products are marketed under the brand names ‘RATNAM’ and ‘BPPL’, which are known in the agricultural sector.
5) Consistent Revenue Growth: The company reported a revenue increase from ₹144.64 crores in 2023 to ₹151.68 crores in 2024, reflecting steady growth.
Risks of Balaji Phosphates Ltd IPO:
1) Fluctuating Profit Margins: Despite revenue growth, net profit slightly declined from ₹6.09 crores in 2023 to ₹6.04 crores in 2024, suggesting potential challenges in cost management or market pricing pressures.
2) Regulatory Dependencies: Operating in the fertilizer industry involves adherence to various government regulations and policies. Changes in these regulations can impact operations and profitability.
3) Market Competition: The fertilizer sector is competitive, with numerous players offering similar products. Maintaining market share requires continuous innovation and effective marketing strategies.
4) Agricultural Dependency: The company’s performance is closely tied to the agricultural sector, which can be affected by factors such as monsoon variability, soil health, and crop patterns.
5) Debt Obligations: While specific debt figures are not publicly disclosed, the company intends to use a portion of the IPO proceeds for repayment or prepayment of borrowings, indicating existing debt that needs to be managed.
Potential investors should weigh these strengths and risks carefully and consider consulting financial advisors to determine alignment with their investment objectives and risk tolerance.
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