Indian Phosphate shares make strong debut, lists with 90% premium at ₹188.1 apiece on NSE SME

Indian Phosphate Ltd made a bumper debut on the NSE SME platform on Tuesday, September 3, with its shares listing at a premium of 90% over the issue price.

According to exchange data, India Phosphate Ltd shares listed at ₹188.1 per share on the NSE SME platform, reflecting gains of 90% over the issue price of ₹99 per share.

The stock gained as much as 5% to hit the upper circuit limit at ₹197.5 apiece. But, soon the stock declined to the 5% lower circuit limit of ₹178.7 apiece amid profit booking.

More than 18.5 lakh shares of the company changed hands in early trade. The total traded value stood at ₹35 crore. The market capitalisation of the company stood at ₹446.56 crore.

The ₹67.36-crore public offer of chemicals and fertilisers producer Indian Phosphate Ltd was open for subscription from August 26 to August 29, on the NSE SME platform.

The book-built public offer was an entirely fresh issue of 68.04 lakh shares. The company fixed the price band at ₹94 to ₹99 per share. The minimum lot size was 1,200 shares and the minimum amount of investment required was ₹1,18,800 for retail investors.

At the close of bidding on August 29, the Indian Phosphate IPO was booked almost 268 times. Bids for 120.61 crore shares were received against around 45.02 lakh shares on offer for subscription.

Retail Investors’ portion was booked around 243 times while the Qualified Institutional Buyers’ (QIBs) quota was booked 181.58 times. The Non-Institutional Investors (NIIs) portion was booked 441.01 times.

Earlier, the company raised ₹19.09 crore from 13 fund schemes (anchor investors) ahead of the launch of the IPO for public investors.

Indian Phosphate is in the production of Linear Alkylbenzene Sulphonic Acid LABSA 90%, known as LABSA. The compound is used in the formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents. The company also manufactures “Single Super Phosphate” (SSP) fertiliser and “Granules Single Super Phosphate” (GSSP) Fertiliser. These nutrients are manufactured and supplied as per the standards of the Fertilizer Control Order of India in powder and granulated form as well as fortified with zinc and boron.

The company has proposed to utilise ₹33.18 crore of IPO proceeds to set up a new facility at SIPCOT Industrial Park, in Cuddalore District of Tamil Nadu, for manufacturing of LABSA 90%, Sulphuric Acid and Magnesium Sulphate.

The new Sulphuric Acid manufacturing facility will help expand the capacity of its existing product, LABSA, 90% and backward integrate its production. This will facilitate the company's service to its existing customers in Southern India with improved service levels and the shortest delivery time, as well as address their quantity requirements.