​Balaji Phosphates Limited, a prominent manufacturer in the fertilizer industry, has launched its Initial Public Offering (IPO) to raise ₹50.11 crore. The IPO opened on February 28, 2025, and is set to close on March 4, 2025. This article provides comprehensive details about the company’s IPO, including its business overview, financials, strengths, risks, and other key information.

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Company Overview

Incorporated on April 4, 1996, Balaji Phosphates Limited specializes in the production and supply of phosphate-based fertilizers. The company’s product portfolio includes:

• Single Super Phosphate (SSP): Available in both powdered and granulated forms, SSP is essential for enhancing phosphorus content in the soil, thereby improving crop yield.​

• NPK Granulated and Mixed Fertilizers: These fertilizers provide a balanced mix of Nitrogen, Phosphorus, and Potassium, crucial for plant growth.​

• Zinc Sulphate: Used to prevent and correct zinc deficiencies in crops, ensuring optimal growth and productivity.​

The company markets its products under the brand names ‘RATNAM’ and ‘BPPL’, catering to retailers, wholesalers, cooperatives, and directly to farmers. Its manufacturing unit is located in Dewas, Madhya Pradesh, covering an area of 12,600 square meters. Balaji Phosphates has a significant presence in states like Madhya Pradesh, Chhattisgarh, Maharashtra, Telangana, and Andhra Pradesh. ​

IPO Details

• Issue Size: The total issue size is ₹50.11 crore, comprising a fresh issue of 59.40 lakh equity shares aggregating to ₹41.58 crore and an Offer for Sale (OFS) of 12.18 lakh equity shares totaling ₹8.53 crore. ​

• Price Band: The shares are priced between ₹66 and ₹70 per equity share. ​

• Lot Size: Investors can bid for a minimum of 2,000 equity shares and in multiples of 2,000 shares thereafter.

• Key Dates:

  • IPO Opening Date: February 28, 2025​
  • IPO Closing Date: March 4, 2025​
  • Allotment Date: March 5, 2025​
  • Listing Date: March 7, 2025​

Financials

Balaji Phosphates has demonstrated consistent financial performance over the past few years:​

Note: Figures are approximate and sourced from the company’s financial statements. ​

Strengths

• Established Industry Presence: With over two decades in the fertilizer manufacturing sector, Balaji Phosphates has built a strong reputation and customer base.​

• Diverse Product Portfolio: The company’s range of products caters to various agricultural needs, enhancing soil health and crop yield.​

• Strategic Location: The manufacturing unit’s location in Dewas, Madhya Pradesh, offers logistical advantages, reducing freight costs and improving supply chain efficiency.

• Experienced Management Team: Led by professionals with extensive experience in the industry, the company benefits from strategic insights and effective decision-making.​

Risks

• Dependence on Agricultural Sector: The company’s performance is closely tied to the agricultural sector, which is influenced by factors like monsoon patterns, government policies, and commodity prices.​

• Regulatory Risks: Changes in environmental regulations and government policies related to the fertilizer industry could impact operations and profitability.​

• Market Competition: The fertilizer industry is competitive, with several established players. Maintaining market share and margins could be challenging.​

IPO Anchor Investors Details

As of the latest available information, specific details regarding anchor investors for Balaji Phosphates’ IPO have not been disclosed. Anchor investors are institutional investors who are allotted shares before the IPO opens to the public, providing confidence and stability to the issue. Potential investors are advised to monitor official announcements for updates on anchor investor participation.​

IPO Promoter Holding

The promoters of Balaji Phosphates Limited are Mr. Alok Gupta and Mr. Mohit Airen. Prior to the IPO, the shareholding pattern was as follows: