Balaji Phosphates shares list at 7% premium on NSE SME platform; check details

Balaji Phosphates made a decent debut on the stock exchanges on Friday, March 7, with its shares listing at a premium of 7% over the issue price.

Balaji Phosphates Ltd shares opened for trading at ₹75 apiece on the NSE Emerge platform, reflecting gains of 7% over the issue price of ₹70 per share. Soon after listing, the stock rallied up to 4% to hit the day’s high at ₹78 apiece.

Within five minutes of trade, more than 3.96 lakh shares changed hands on the NSE Emerge platform. The total turnover stood at ₹2.97 crore, and the company's market valuation reached ₹178.33 crore.

At the listing price of ₹ 75 per share, the value of a single lot of equity shares bagged by IPO investors was ₹ 1,50,000 (₹75 x 2,000). The IPO investors would have made a listing gain of ₹10,000 per lot as the minimum investment in a single lot was ₹1,40,000 (₹ 70 x 2,000) at the upper price band.

Farm nutrients producer Balaji Phosphates launched its IPO on February 28 to raise ₹50.11 crore from investors. The NSE SME issue comprised a fresh issuance of 59.4 lakh shares and an offer-for-sale (OFS) of 12.18 lakh shares. The IPO price was fixed at ₹66 to ₹70 per share and the lot size was 2,000 shares.

On the closing day on March 4, the initial public offering was booked 1.26 times. The IPO garnered applications for 78.9 lakh shares against 62.28 lakh shares on offer.

The retail individual investors’ quota was subscribed 1.08 times as bids for 29.6 lakh shares were received against 27.2 lakh shares on offer. The Non-Institutional Investors’ (NIIs) quota was subscribed 1.51 times with applications for 30.84 lakh shares against 20.4 lakh shares on offer. The Qualified Institutional Buyers’ (QIBs) category was booked 1.26 times as applications for 18.46 lakh were received against 14.68 lakh shares set aside for the segment.

Earlier in the pre-bid round, Balaji Phosphates IPO mobilised ₹4 crore from anchor investors. The company allotted 5,72,000 shares to Veloce Opportunities Fund and Eminence Global Fund PCC.

Balaji Phosphates Ltd manufactures and supplies Single Superphosphate (SSP), Mixed Fertilizers, Zinc Sulphate, and NPK Granulated. It sells products under the ‘RATNAM’ and ‘BPPL’ brand names to wholesalers, retailers, and cooperatives. The company supplies products in the markets of Chhattisgarh, Maharashtra, Madhya Pradesh, Telangana, and Andhra Pradesh. It has a production plant at Dewas in Madhya Pradesh.

According to Balaji Phosphates RHP, the IPO proceeds of ₹12.87 crore will be used to set up a warehouse at its subsidiaries’ plant premises and upgrade existing facilities. The company has earmarked ₹19 crore for meeting working capital requirements.

Balaji Phosphates Ltd posted a net profit of ₹4.15 crore for the April-August period of FY 2024-25. Its revenue from operations stood at ₹54.85 crore during the period.

The company reported a profit after tax of ₹6.04 crore in 2023-24 against ₹6.09 crore in FY 2022-23. Its revenue stood at ₹151.68 crore in FY24 against ₹144.64 crore in the preceding financial year.