Balaji Phosphates IPO Date, Price, GMP, Review, Details

Established in 1996 as Balaji Phosphate Private Limited, the company transitioned to a public limited entity in September 2023. Headquartered in Kanpur, Uttar Pradesh, Balaji Phosphates specializes in manufacturing Single Super Phosphate (SSP), NPK Granulated Fertilizers, and Zinc Sulphate under the brands ‘RATNAM’ and ‘BPPL’.

Its 12,600-square-meter manufacturing facility in Dewas, Madhya Pradesh, serves five key states: Madhya Pradesh, Chhattisgarh, Maharashtra, Telangana, and Andhra Pradesh. The company adheres to stringent quality standards through an in-house laboratory and complies with the Fertilizer Control Order (FCO).

IPO Related Details

Key Offer Parameters

Capital Structure

• Pre-Issue Paid-Up Capital: ₹17.82 Crores
• Post-Issue Paid-Up Capital: ₹23.76 Crores
• Market Capitalization: ₹166.44 Crores (Post-IPO)

IPO Timeline

Promoter Details

The IPO includes an Offer for Sale (OFS) of 12.18 lakh shares by promoters:

• Mr. Alok Gupta: 6,09,000 shares
• Mr. Mohit Airen: 6,09,000 shares

Post-IPO, the promoters’ combined stake will reduce marginally, retaining significant control to ensure continuity in strategic decision-making.

Lot Size and Investment Range

IPO Reservation Quota

Financial Performance

Key Financial Metrics (₹ in Lakh)

Production Capacity Utilization

Objects of the Issue

1. Capacity Expansion: Upgrade infrastructure to enhance SSP and Zinc Sulphate production.
2. Working Capital: Maintain liquidity for raw material procurement and operational expenses.
3. General Corporate Purposes: Fund R&D initiatives and market expansion.

Upcoming Plans

• Capacity Utilization: Target 75% utilization for SSP by FY26 through supply chain optimization.
• Product Diversification: Introduce customized NPK blends to cater to regional soil needs.
• Backward Integration: Explore partnerships for local sourcing of Rock Phosphate to reduce import dependency.

Strengths and Risks

Strengths

1. Regional Dominance: Strong distribution network across five agriculturally critical states.
2. Quality Assurance: In-house lab ensures compliance with FCO standards.
3. Experienced Leadership: Proven track record in scaling operations and managing market cycles.

Risks

1. Agricultural Dependency: Revenue tied to monsoon patterns and crop prices.
2. Raw Material Volatility: 60% reliance on imported Rock Phosphate exposes margins to currency fluctuations.
3. Regulatory Changes: Subsidy revisions or environmental regulations could impact profitability.

Company Contact Details

IPO Registrar and RHP/DRHP Links

Shreenath Paper Products IPO Date, Price, GMP, Review, Details

Nukleus Office Solutions IPO Date, Review, Price, Allotment Details

Frequently Asked Questions (FAQs)

1. What is the IPO price band?
   The price band is ₹66–₹70 per share, with a lot size of 2,000 shares.
2. How can retail investors apply?
   Through ASBA-enabled bank accounts via UPI mandates on platforms like Angel One or Upstox.
3. What is the post-IPO market capitalization?
   ₹166.44 Crores, based on the upper price band.
4. What are the key risks?
   Dependency on agricultural cycles and imported raw materials.
5. When will shares be credited to Demat accounts?
   By March 6, 2025, post-allotment.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult financial advisors and review the RHP before participating in the IPO. Market investments carry risks, including capital loss, and past performance does not guarantee future returns.