Balaji Phosphates Limited is coming up with an IPO consisting of a fresh issue of 59,40,000 shares worth INR 41.58 crores and an offer to sell 12,18,000 existing shares worth INR 8.53 crores. The company aims to fund capital and working expenses while efficiently supporting general corporate purposes. 

Balaji Phosphates IPO – Important Dates 

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Balaji Phosphates Limited IPO – Company Profile 

Balaji Phosphates Limited manufactures and supplies SSP (powder/granulated), NPK fertilisers, and Zinc Sulphate under ‘RATNAM’ and ‘BPPL’ brands, adhering to Fertilizer Control Order standards, catering to retailers, wholesalers, cooperatives, and farmers. 

Their phosphate fertilisers, including SSP, zinc sulfate, and NPK blends, enhance soil fertility, correct deficiencies, and boost crop yield. They serve farmers across Madhya Pradesh, Chhattisgarh, Maharashtra, Telangana, and Andhra Pradesh, supporting sustainable agriculture. 

They ensure quality through rigorous testing of raw materials and finished fertilisers in their in-house lab. Equipped with advanced instruments, they conduct physical and chemical tests, packaging products in durable HDPE bags for safe transport and storage. 

Balaji Phosphates Ltd IPO Fundamental Analysis 

Balaji Phosphates Limited’s financial analysis reveals a mixed performance. Revenue showed growth, while equities increased. Profitability and RoNW declined, impacting investor confidence. Liquidity strengthened, but lower inventory turnover suggests slower sales or inefficiencies. EPS showed slight improvement. 

• Revenue Trend: The revenue increased from ₹14,454.24 lakhs in March 2023 to ₹15,154.63 lakhs in March 2024. The revenue for the current year’s 5-month period ending August 2024 is INR 5,337.06 lakh. 
• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio remained the same. 
• Profitability: The profit after tax (PAT) decreased from ₹608.76 lakh in March 2023 to ₹604.05 lakh in March 2024, undermining investor confidence. The profit for the period ending August 2024 is ₹414.65 lakh. 
• Earnings per Share (EPS): The diluted EPS increased from ₹3.42 in March 2023 to ₹3.39 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending September 2024 is ₹2.32. 
• Return on Net Worth (RoNW): The RoNW has decreased from 21.02% to 10.59%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

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Balaji Phosphates IPO Financial Analysis 

Balaji Phosphates Limited IPO Peer Comparison 

Balaji Phosphate Ltd shows stable performance with consistent EPS. Coromandel International Ltd leads with strong earnings and returns. Paradeep Phosphate Ltd maintains moderate growth, while Rama Phosphate Ltd faces negative earnings and declining returns. 

Balaji Phosphates Ltd IPO Objective 

The main objective of Balaji Phosphates Limited is to meet the capital expenditure working capital requirements. 

1. Funding capital expenditure requirement for Construction of a warehouse, installation of EOT Crane and upgradation of specific equipment: The company intends to utilise INR 12.88 crores for warehouse expansion, equipment upgrades, and efficiency improvements to address storage constraints, enhance production capacity, reduce downtime, and optimise procurement costs amid cyclical business challenges. 

2. To meet the working capital requirements: The company plans to utilise INR 19.00 crores from the issue proceeds to meet its growing working capital needs, supporting SSP and GSSP fertiliser production while funding the balance through borrowings and internal accruals. 

3. General corporate purposes: The company will deploy funds for general corporate purposes, including business development, salaries, rent, administration, insurance, repairs, taxes, and other operational expenses essential for sustaining and expanding its business activities. 

Balaji Phosphates IPO Risks And Challenges 

Balaji Phosphates Limited’s risk includes dependency on the agricultural sector, climate variability, supply chain disruptions for key raw materials, price volatility, and regulatory changes. Strategies include supplier diversification and local sourcing to mitigate operational challenges. 

• The company’s business depends on the agricultural sector, which is influenced by climate, monsoons, water supply, crop prices, and credit availability. Changes in cropping patterns, fertiliser alternatives, and low agricultural prices may impact demand and profitability. 

• The company relies on imported Rock Phosphate and Sulfuric Acid, facing risks from supply chain disruptions, price volatility, and geopolitical factors. Strategies include diversifying suppliers and exploring local sourcing to mitigate potential operational challenges. 

• The company’s operations are susceptible to weather conditions, pest infestations, and climate change. Adverse weather can impact crop demand, sales timing, and product mix, while stricter environmental regulations may increase operational costs. 

Balaji Phosphates Ltd IPO – Industry & Market Potential 

Global fertiliser consumption is expected to recover by 4% to 192.5 Mt in FY 2023, with South Asia (+5% N, +9% P, +12% K) and Latin America (+7%) leading the rebound. Key drivers for FY 2024-2027 include affordability, climate change, and regulations. 

Between FY 2024 and FY 2027, fertiliser demand will see strong growth in Africa (+17%), West Asia (+10%), and EECA (+13%), while Oceania (+7%) recovers from El Niño impacts and East Asia experiences moderate expansion (+2-4%). 

India’s agriculture sector, employing ~55% of the population, contributes ~18% to GDP. Growing demand, rising incomes, and advanced technologies are driving its expansion, projected to reach $24 billion by 2025, with food grain production at 149.92 million tonnes in FY23. 

Balaji Phosphates Limited IPO – Type of Offer 

Balaji Phosphates Limited plans a fresh issue of 59,40,000 shares, seeking INR 41.58 crores to fund capital and working expenses while supporting general corporate purposes efficiently. Additionally, the company proposes an offer to sell 12,18,000 existing shares worth INR 8.53 crores. 

1. Fresh Issue: The company will issue 59,40,000 new shares to raise capital, aiming to collect INR 41.58 crores. The company intends to utilise the proceeds from the fresh issue to fund capital and working expenses while supporting general corporate purposes efficiently.
2. Offer for sale: Balaji Phosphates Limited is offering to sell 12,18,000 existing shares worth INR 8.53 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:

Balaji Phosphates IPO Offer Size 

The offer size of Balaji Phosphates Limited is INR 50.11 crores, consisting of a fresh issue of 59,40,000 shares worth INR 41.58 crores and an offer to sell 12,18,000 existing shares worth INR 8.53 crores. The company aims to fund capital and working expenses while efficiently supporting general corporate purposes. 

Balaji Phosphates Limited IPO Allotment Structure 

Balaji Phosphates Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 3,58,000 shares are reserved for market makers.

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 3,58,000 shares, are reserved for market makers. 

Read more about Balaji Phosphates IPO Day 1 Subscription Status

How to apply for the Balaji Phosphates IPO?

To apply for the Balaji Phosphates Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Balaji Phosphates Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Balaji Phosphates Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more about Balaji Phosphates IPO Day 2 Subscription Status

How do you check Balaji Phosphates IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Balaji Phosphates Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Balaji Phosphates Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Balaji Phosphates Limited IPO:

● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Balaji Phosphates Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more about Balaji Phosphates IPO Allotment Status

Balaji Phosphates Ltd IPO Offer Registrar

The registrar for the Balaji Phosphates Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

SKYLINE FINANCIAL SERVICES PRIVATE LIMITED 

D-153 A, 1st Floor Okhla Industrial Area, 

Phase-I New Delhi – 110020, 

Delhi, India 

Tel No.: 011-40450193-97 

Email: [email protected]

Website: www.skylinerta.com 

Balaji Phosphates SME IPO – FAQs