Indian Phosphate Limited IPO
- IPO Date26 Aug, 2024 to 29 Aug, 2024
- Listing Date03 Sep, 2024
- Face Value₹10 per share
- Issue Price₹94 to ₹99 per share
- Lot Size1200 Shares
- Minimum Investment₹1,18,800
- Listing AtNSE SME
- Total Issue Size68,04,000 Shares
(aggregating up to ₹67.36 Cr) - Fresh Issue68,04,000 Shares
(aggregating up to ₹67.36 Cr)
- Offer for Sale-
- Issue TypeBook Built Issue IPO
- Share holding pre issue1,81,85,609
- Shareholding post issue2,49,89,609
IPO Dates
Closing Date
29 Aug, 2024
Initiation of Refunds
02 Sep, 2024
Listing Date
03 Sep, 2024
26 Aug, 2024
Opening Date
30 Aug, 2024
Basis of Allotment
02 Sep, 2024
Credit of Shares
Indian Phosphate Limited Lot Size
Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹1,18,800 |
| HNI (Min) | 2 | 2400 | ₹2,37,600 |
| Retail (Max) | 1 | 1200 | ₹1,18,800 |
Indian Phosphate Limited Promoter Holding
Mr. Ravindra Singh, Mrs. Mamta Arora, and Mr. Rushil Arora are the promoters of the company.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 100% | - |
Indian Phosphate Limited COMPANY INFORMATION
Indian Phosphate IPO is a book built issue of Rs 67.36 crores. The issue is entirely a fresh issue of 68.04 lakh shares. Indian Phosphate IPO opens for subscription on August 26, 2024 and closes on August 29, 2024. The allotment for the Indian Phosphate IPO is expected to be finalized on Friday, August 30, 2024. Indian Phosphate IPO will list on NSE SME with tentative listing date fixed as Tuesday, September 3, 2024. Indian Phosphate IPO price band is set at ₹94 to ₹99 per share. The minimum lot size for an application is 1200 Shares. The minimum amount of investment required by retail investors is ₹118,800. The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹237,600. Beeline Capital Advisors Pvt Ltd is the book running lead manager of the Indian Phosphate IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Indian Phosphate IPO is Spread X Securities. Refer to Indian Phosphate IPO RHP for detailed information.
Indian Phosphate Limited, established in 1998, produces Linear Alkyl Benzene Sulfonic Acid LABSA 90%, commonly known as LABSA, an anionic surfactant used in the formulation of all types of washing powders, cakes, toilet cleaners, and liquid detergents.
The company also manufactures “Single Super Phosphate” (SSP) and “Granules Single Super Phosphate” (GSSP) which are manufactured and supplied in powder and granule form as per the norms of the Fertilizer Control Regulation of India and are fortified with Zinc and Boron.
The Company's manufacturing facility is located in Girwa district, Udaipur, Rajasthan, close to the two raw materials (a) sulphuric acid 98% and (b) rock phosphate used in the manufacture of the products. The other important raw material, linear alkyl benzene (LAB), is sourced from IOCL, Vadodara, Nirma Ltd, Vadodara and Reliance Industries Ltd, Patalganga.
Indian Phosphate Limited has a presence in major states like Punjab, Bihar, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Himachal Pradesh, West Bengal, and Uttarakhand.
As of March 31, 2024, the company had 105 employees.
Indian Phosphate Limited IPO
The IPO of Indian Phosphate Limited is generating considerable attention in the market. Investors are keen on understanding the company’s potential, growth prospects, and the financial details that could influence their decision. In this analysis, we’ll break down the key elements of the IPO, focusing on its strengths and weaknesses, while providing a well-rounded view of what you need to consider before investing.
Overview of Indian Phosphate Limited
Indian Phosphate Limited is a significant player in the fertilizer industry, focusing on the production and supply of phosphatic fertilizers. The company has built a strong market presence through consistent growth, strategic partnerships, and efficient operations.
Key IPO Details
The following details are important for potential investors:
- IPO Size: The offering is designed to raise substantial capital for the company.
- Price Band: The price band for the shares is within a competitive range, aimed at attracting retail investors.
- Purpose: The funds raised are primarily targeted toward expanding production capacity, reducing debt, and enhancing operational efficiencies.
Pros of Investing in Indian Phosphate Limited IPO
- Strong Market Position: Indian Phosphate Limited has a solid presence in the phosphatic fertilizer segment.
- Growth Potential: The company is expanding its production capacity, which could boost revenue in the coming years.
- Favorable Industry Trends: The agricultural sector's demand for fertilizers remains robust, providing a stable growth path.
- Experienced Management: The leadership team brings years of industry expertise, guiding the company’s steady growth.
Strategic Initiatives and Expansion Plans
The company has set its eyes on expanding production facilities to meet growing demand, enhancing its market share. Additionally, Indian Phosphate Limited is focusing on innovative solutions to improve fertilizer quality, which could translate to better margins and profitability.
Cons and Risks of Investing in Indian Phosphate Limited IPO
- Market Competition: The fertilizer industry is competitive, with major players holding significant market share, which could challenge the company’s growth.
- Regulatory Risks: Changes in government policies or environmental regulations could impact operations.
- Debt Levels: While the IPO proceeds will be used to reduce debt, the current debt levels are notable.
- Profit Margins: The company's profit margins are susceptible to fluctuations in raw material costs, especially in a volatile global market.
Financial Health and Revenue Concerns
The company’s financial health appears stable but not without concerns. Potential investors should weigh the company's current debt levels against its revenue projections. Additionally, the cost of raw materials and operational expenses are key factors that could impact profitability in the medium to long term.
Final Verdict: Should You Invest?
Investing in Indian Phosphate Limited’s IPO could be a good opportunity for those who believe in the long-term growth potential of the agricultural sector. However, considering the risks, such as market competition and regulatory changes, cautious investors should perform their due diligence.
Key Takeaways for Investors
- Long-Term Growth: If you have a long-term horizon and are willing to endure potential short-term volatility, this IPO could align with your goals.
- Balanced Risk: With both growth potential and significant risks, this investment might suit those with a balanced risk appetite.
FAQs About Indian Phosphate Limited Ipo
Indian Phosphate Limited IPO will open on 26 Aug, 2024 and close on 29 Aug, 2024. Investors must apply within this period to participate.
The Indian Phosphate Limited IPO price band is set between ₹94.00 and ₹99.00 per share. The minimum lot size is 1200, requiring an investment of at least ₹118800.00.
The Indian Phosphate Limited IPO shares are expected to be listed on 03 Sep, 2024, subject to regulatory approvals and final allotment.
You can track your Indian Phosphate Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Indian Phosphate Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.