Balaji Phosphates IPO booked 19% on Day 1; check issue size, price band & more

The initial public offering (IPO) of Balaji Phosphates Ltd witnessed a weak demand on the first day of bidding on Friday, February 28. The NSE SME issue was booked only 19% on Day 1.

The phosphates manufacturer’s public offer is open for subscription till Tuesday, March 4. The company aims to raise ₹50.11 crore from the primary market through its maiden share sale.

At the end of the bidding at 5 pm, the issue attracted applications for 11.58 lakh shares against 62.28 lakh shares on offer.

Balaji Phosphates IPO received bids for 6.10 lakh shares from the retail investors against 27.2 lakh shares reserved for the category. The retail portion of the IPO was booked 22%. The Non-Institutional Investors (NIIs) booked only 27% of their allocated quota of 20.4 lakh shares. The NIIs applied for 5.74 lakh shares. The Qualified Institutional Buyers (QIBs) segment did not receive any bid compared to 14.68 lakh shares set aside for the category.

Ahead of the launch of its IPO, Balaji Phosphates raised a total of ₹4 crore from anchor investors. Its anchor bid date was February 27, 2025. According to the circular on the stock exchanges, the company allotted 5.72 lakh equity shares to two anchor investors at an issue price of ₹70 per piece, including a share premium of ₹60 each.

Here’s a look at all the key details about the issue for the investors interested in applying for the shares of Balaji Phosphates Ltd.

Balaji Phosphates IPO price band and other details

The Balaji Phosphates IPO includes a fresh issuance of 59.4 lakh shares, worth ₹41.58 crore, along with an offer-for-sale (OFS) of 12.18 lakh shares, aggregating up to an amount of ₹8.53 crore.

The company has set the IPO price band between ₹66 to ₹70 per share. Investors must purchase a minimum lot size of 2,000 shares.

Arihant Capital Markets Ltd will act as the book-running lead manager for the Balaji Phosphates IPO, with Skyline Financial Services Private Ltd serving as the registrar. Nnm Securities Private Ltd is the market maker for the offering.

Balaji Phosphates IPO key dates

The IPO allotment status is expected to be finalised on Wednesday, March 5. Refunds will be issued on Thursday, March 6, and the allottees will also receive shares in the demat accounts on the same day. The company has proposed to list shares on the NSE SME platform on Friday, March 7.

About Balaji Phosphates and use of IPO proceeds

Balaji Phosphates is a prominent manufacturer of phosphate-based fertilisers, offering products such as Single Super Phosphate (SSP), NPK Granulated & Mixed fertilisers, and Zinc Sulphate under the brands ‘BPPL’ and ‘Ratnam’.

These products improve soil fertility and support plant growth by compensating deficiencies like zinc, phosphorus, potassium, and nitrogen. Its products are sold in states like Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Maharashtra, and Telangana. Its manufacturing facility is situated in Dewas, Madhya Pradesh.

The company operates a manufacturing facility in Dewas, Madhya Pradesh. As of March 31, 2024, the unit had an annual production capacity of 120,000 MT for Single Super Phosphate, 3,300 MT for Zinc Sulphate, and 49,500 MT for NPK Granulated & Mix.

The money raised will be used to meet capital expenditure requirements, working capital needs and corporate general purposes.

As per its RHP, the fertiliser producer will allocate ₹19 crore or 45.69% of the funds generated through the IPO towards its own working capital needs. It will invest 30.95% of the proceeds, translating to ₹12.87 crore for a warehouse, along with facility upgrades at a subsidiary’s factory.

Further, a portion of the net proceeds will be utilised for corporate purposes and strategic initiatives.

For the financial year ended March 31, 2024, Balaji Phosphates’ revenue from operations was recorded at ₹151.54 crore compared to ₹144.54 crore in the preceding fiscal year (FY23). The company’s profit after tax (PAT) for FY24 stood at ₹6.04 crore, remaining flat compared to ₹6.08 crore in FY23.