Key details on the Indian Phosphate IPO, including its date, price range, and allotment information
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Table of Contents
- Company Overview
- Company Strategy
- Details on IPO Date and Price Band
- IPO Objective
- Market Lot Information on Indian Phosphate IPO
- Allotment Dates for Indian Phosphate IPO
- Application Process of IPO
- Financial Analysis of Company
- IPO Valuation
- Competitor Analysis
- Promoters And Management
- Registrar for Indian Phosphate IPO
- Offer Lead Manager
- Company Address
Company Overview
Indian Phosphate is a prominent manufacturer of phosphatic fertilizers used in the agricultural requirements of the country. The company engages in high-quality phosphate products to improve the practice of farming and gain high yields by increasing soil fertility. The company has strategic distribution outlets in many states of India, which makes it easier for farmers to obtain nutrients for their produce.
Company Strategy
The company strategy aims for product diversification through the supply of basic chemicals and fertilizers to reduce financial risk and establishing a new facility in different geographical locations to optimize logistics and have better access to raw material supplies, eventually improving efficiency in production and distribution. Further, its financial strategy includes significant capital expenditure to increase the capacity of production, working capital management, and possible debt reduction to assist in long-term growth and gain a competitive advantage in the market.
Details on IPO Date and Price Band
| IPO Open: | August 26, 2024 |
| IPO Close: | August 29, 2024 |
| IPO Size: | Approx INR 67.36 Crores (68,04,000 Equity Shares) |
| Fresh Issue: | Approx INR 67.36 Crores (68,04,000 Equity Shares) |
| Face Value: | INR 10 Per Equity Share |
| IPO Price Band: | INR 94 to INR 99 Per Equity Share |
| IPO Listing on: | NSE SME |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
IPO Objective:
The main objective of Indian Phosphate Limited is to set up a new manufacturing unit within the SIPCOT Industrial Park, Tamil Nadu, that will engage in producing sulfuric acid, LABSA 90%, and magnesium sulfate, enhancing production capabilities and product diversification. Furthermore, the company will utilize the funds from the IPO to satisfy its working capital needs for running day-to-day business. The rest of the proceeds will be used for general corporate purposes to fund growth and development.
Market Lot Information on Indian Phosphate IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (1,200 shares) for INR 1,18,800
- Retail Maximum: 1 lot (1,200 shares) for INR 1,18,800
- S-HNI Minimum: 2 lots (2,400 shares) for INR 2,37,600
Allotment Dates for Indian Phosphate IPO
Indian Phosphate IPO open date is August 26 and the IPO close date is August 29. The IPO allotment date is August 30 and the listing date is September 3.
| IPO Open Date: | August 26, 2024 |
| IPO Close Date: | August 29, 2024 |
| Basis of Allotment: | August 30, 2024 |
| Refunds: | September 2, 2024 |
| Credit to Demat Account: | September 2, 2024 |
| IPO Listing Date: | September 3, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the Indian Phosphate. On the other hand, the IPO forms are also available for download on the NSE websites which the candidates can fill and submit.
Financial Analysis of the Company
Financials in INR Crores.
| Year | Revenue | Expense | PAT |
| 2022 | 558.39 | 536.65 | 16.17 |
| 2023 | 770.93 | 748.54 | 16.60 |
| 2024 | 706.26 | 687.25 | 13.47 |
Indian Phosphate Limited’s financial performance over the past three years shows steady revenue growth but also fluctuating profitability. In 2022, the company reported revenue of INR 558.39 crores, expenses of INR 536.65 crores, and a Profit After Tax (PAT) of INR 16.17 crores. In 2023, revenue increased significantly to INR 770.93 crores, with expenses rising to INR 748.54 crores, resulting in a slightly higher PAT of INR 16.60 crores. In 2024, revenue decreased to INR 706.26 crores, with expenses at INR 687.25 crores and PAT at INR 13.47 crores. The company has managed to maintain positive PAT despite the fluctuations in revenue and expenses.
IPO Valuation (FY 2024)
The company’s EPS stands at a value of INR 7.41 with a Return on Net Worth (RoNW) of 16.63% and a Net Asset Value (NAV) per share of INR 44.54 in the financial year 2024. The IPO price band ranges from INR 94 to INR 99 with the issues of 68,04,000 equity shares to raise INR 67.36 crores and a face value of INR 10 per share to raise funds for establishing a new manufacturing facility, meeting working capital needs, and supporting general corporate purposes to enhance production capacity and business growth.
| Earnings Per Share (EPS): | INR 7.41 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 16.63% |
| Net Asset Value (NAV): | INR 44.54 per Equity Share |
Competitor Analysis
Here is the competitor of Indian Phosphate:
Rama Phosphates Limited
Rama Phosphates Limited is a renowned phosphate-producing organization in India catering to the needs of the agricultural segment by manufacturing and supplying phosphatic fertilizers and chemicals. The company started its operations in 1984 and deals mainly in the manufacture of Single Super Phosphate which plays an essential role in boosting of fertility of the soil and thus Agricultural production. Further, Rama Phosphates manufactures several chemicals such as Sulphuric Acid & Oleum chemicals utilized in diverse areas. The company has advanced manufacturing capable of producing quality agriculture products.
Promoters And Management
- Mr. Ravindra Singh
- Mrs. Mamta Arora
- Mr. Rushil Arora
Offer Lead Manager
Beeline Capital Advisors Pvt Ltd
Beeline Capital Advisors Pvt. Ltd. is an investment banking firm that operates in India and deals with capital markets. They provide all sorts of banking services, such as M&A services, equity/fundraising, and financial management. Beeline Capital Advisors’ approach involves a focus on providing services to clients based on their profound understanding of market analysis and financial structuring to deliver high-value solutions to investors.
Conclusion
The Indian Phosphate IPO has a promising investment opportunity for those interested in the agricultural sector. Opening on August 26, 2024, and closing on August 29, 2024, the IPO aims to raise INR 67.36 crore with shares priced between INR 94 and INR 99 each. Funds will support new manufacturing capabilities and working capital needs, with a focus on enhancing production and distribution efficiency. With a solid financial track record and strategic growth plans, Indian Phosphate is positioned for future success, making this IPO worth considering for potential investors.
