Balaji Phosphates IPO Subscription Status and Updates

The Balaji Phosphates Limited IPO received a tepid response from investors at the start of Day 1, with a subscription of only 0.18 times in total. 

The company is offering shares in a price range of Rs 66–70, with a minimum lot size of 2,000 shares. This Rs 50.11 crore IPO comprises a fresh issue worth Rs 41.58 crore (59.4 lakh shares) and an offer for sale (OFS) of Rs 8.53 crore (12.18 lakh shares).

Stay tuned for the latest updates on the Balaji Phosphates Limited IPO subscription status as the day progresses.

Balaji Phosphates Limited IPO Subscription Status - Day 1 

The Balaji Phosphates Limited IPO has been subscribed 0.18 times at the start of its opening day. The anchor investors have subscribed 1.00 times, the retail category saw a subscription of 0.21 times, while Non-Institutional Investors (NIIs) subscribed 0.27 times. Meanwhile, Qualified Institutional Buyers (QIBs) have yet to subscribe to this IPO.

Company Overview of Balaji Phosphates IPO 

Balaji Phosphates is an Indian company who are engaged in manufacturing and supplying Single Super Phosphate (SSP) in powder and granulated forms, NPK Granulated and Mixed Fertilizers, and Zinc Sulphate, which are used in agricultural soils to enhance plant growth and development. SSP addresses phosphorus deficiencies, zinc sulphate corrects the zinc deficiencies, and NPK fertilizers supply a balanced mixture of nitrogen, phosphorus, and potassium, which will overall promote the harvesting of the finest crop growth and production. 

Balaji Phosphates Limited’s manufacturing unit is in Madhya Pradesh, India, which covers approximately 12,600 sq.mts. Their products cater to the farmers who support local agricultural growth in Andhra Pradesh, Chhattisgarh, Madhya Pradesh, Maharashtra, and Telangana. 

Strengths of Balaji Phosphates IPO

• Balaji Phosphates Limited has good hands-on experience in the fertilizer trade industry, where customer needs and profitability are met. A good market reputation has led the company to have an upper hand on the supply of raw materials, which has positively impacted its supply chain.

• The company’s presence in 5 prominent cities in India has led to their reflection on their commitment to adapt to the various local requirements and a diverse customer base. 

• The company has a competitive advantage in terms of location as the factory is strategically located in the heart of Madhya Pradesh (within the Dewas Industrial Area). It makes the logistics cost-efficient and helps in responding to customer demand more efficiently. 

• The company’s management is in the hands of dedicated team members who are specialised in their respective domains and whose vision and commitment is to take the company towards a successful path. 

• The company’s quality assurance ensures that the standard quality is met in relevant chemical compositions, which will boost the customer’s confidence. 

Risks of Balaji Phosphates IPO

• Balaji Phosphates Limited has relied on the import of raw materials like Sulphuric Acid and Rock Phosphate from countries such as Egypt, Morocco, and Jordan. Key factors like trade policies, tariffs, and geopolitical disruptions can lead to a disturbance in availing these important raw materials. 

• The company has seen negative cash flows in the past due to the gap in working capital, high capital expenditures, and interest payments. Any adverse situation of having a negative cash flow in the future could affect the operations of the company. 

• The company is involved in foreign currency trade payables, which may lead to exchange rate risks. 

• The company has some outstanding litigations, like regulatory action against the company and group companies, and also tax proceedings against the promoters and directors. Any negative outcome from these litigations will lead to an adverse effect on the business and its operations. 

• The company has not received any long-term contracts with the customers/distributors and is operating solely on the orders received on hand. This could lead to a drop in revenue and profitability if the order flow is not well-maintained. 

• The company’s primary portion of the revenue is earned by a limited number of customers. This will adversely affect the financial performance of the company if it fails to retain prominent customers. 

Balaji Phosphates IPO Financial Overview

• The company’s revenue from operations has grown consistently, which indicates increased sales. The growth from 2022 to 2023  was rapid, as it saw a hike of 16.9%. But the growth from 2023 to 2024 was at a slower pace, as it only saw a hike of 4.8%.

• The PAT margin saw a massive jump from 2022 to 2023 (+90%), but the margin from 2023 to 2024 decreased by 0.20%, which could be a result of higher tax payments. 

• The Return On Equity (ROE) has significantly increased in 2023, which means the profitability of the company is good, and the shareholders' returns are also strong. However, a decline in 2024 shows lower profits relative to equity. 

• The Return On Capital Employed (ROCE) has improved in 2023, which indicates that the capital has been efficiently utilised. However, the drop in 2024 may suggest that there is high capital investment or declining profitability. 

Balaji Phosphates IPO Details

• IPO Date: February 28, 2025, to March 4, 2025

• Price Band: Rs.66 to Rs.70

• Lot Size: 2,000 shares

• Total Issue Size: 71,58,000 shares
  (amounting to Rs.50.11 Cr)

• Fresh Issue: 59,40,000 shares

(amounting to Rs.41.58 Cr)

• Offer For Sale: 12,18,000 shares of Rs 10

(amounting to Rs.8.53 Cr)

• Allotment Date: March 5, 2025

• Listing Date: March 7, 2025

How to Apply for Balaji Phosphates IPO

• Visit the Rupeezy app or Rupezy DOCK.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per lot size. 

• Submit to complete the order.