Balaji Phosphates Limited IPO

Balaji Phosphates Ltd

₹1,32,000 /2000 sharesMinimum Investment

Balaji Phosphates Limited IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
--₹70.00₹75.00₹5.00 (7.14%)

Balaji Phosphates Limited IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
28 Feb ‘25 - 4 Mar ‘25₹1,32,0002,000₹66 - ₹70
Issue SizeIPO Doc
50.11Cr
RHP PDF

Subscription rate

As of 04 Mar'25, 04:00 PM
Qualified Institutional Buyers0.97x
Non-Institutional Investor1.40x
Retail Individual Investor0.84x
Total0.90x

About Balaji Phosphates Limited

Balaji Phosphates Limited is engaged in the manufacture and supply of fertilisers, including single super phosphate (SSP) in both powder and granulated forms, NPK granulated and mixed fertilisers, and zinc sulphate. These fertilisers conform to the Fertiliser Control Order of India and are marketed under the brand names ‘RATNAM’ and ‘BPPL.’ The company supplies its products to retailers, wholesalers, and state-owned cooperatives, with farmers as the end users. Balaji Phosphates sources key raw materials such as rock phosphate from countries including Jordan, Morocco, and Egypt, while locally procuring beneficiated rock phosphate (BRP) and sulfuric acid. It operates a manufacturing unit in Dewas, Madhya Pradesh.;
Founded in
1996
Managing director
Mr Mohit Airen
Parent organisation
Balaji Phosphates Ltd

Strengths & Financials of Balaji Phosphates Limited

Strengths
Risks
Balaji Phosphates has been operating in the fertiliser industry for several years. The company claims to have an established network of quality dealers and raw material suppliers.
Balaji Phosphates’ manufacturing unit is located in the Dewas industrial area of Madhya Pradesh, which is centrally positioned to serve key agricultural regions.
The company claims to have an in-house testing laboratory equipped with electronic analytical balances, pH metres, sieve shakers, muffle furnaces, water distillation plants, and magnetic stirrers. This laboratory is used to conduct quality control tests on raw materials and finished products.
The company has seen a consistent increase in revenue from operations. Revenue from operations increased from Rs 123.65 crore in FY22 to Rs 144.54 crore in FY23 to Rs 151.55 crore in FY24.
The company’s revenue is highly dependent on the agricultural sector, which in turn is influenced by factors such as rainfall, soil quality, water availability, and government policies. Any reduction in cultivated land, erratic monsoons, or shifts in cropping patterns can lead to lower demand for fertilisers and negatively affect the company’s business, results of operations, and financial condition.
The company relies on imported rock phosphate as well as locally procured BRP and sulfuric acid. Any increase in global commodity prices, supply chain disruptions, or geopolitical tensions affecting these imports could raise production costs and impact profitability.
A significant portion of fertiliser sales in India depends on government subsidies provided to farmers. Any reduction or withdrawal of these subsidies, delays in payments under the direct benefit transfer (DBT) system, or changes in minimum support prices (MSP) for crops can decrease fertiliser demand and negatively impact the company’s business and financial performance.
The company primarily operates in Madhya Pradesh, Chhattisgarh, Maharashtra, Telangana, and Andhra Pradesh. Any economic, political, or social disruptions in these states could impact distribution channels, affect product sales, and negatively impact the company's overall financial performance.
The company, its subsidiaries, promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of January 31, 2025, the company had outstanding financial indebtedness of Rs 39.67 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.
The company makes trade payments in foreign currencies, particularly US dollars, for imported raw materials. In FY24, FY23, and FY22, the company incurred foreign exchange losses of Rs 0.03 crore, Rs 0.15 crore, and Rs 0.05 crore, respectively. Any further depreciation of the Indian rupee could increase the company’s costs, negatively impacting profitability.
Balaji Phosphates has experienced negative cash flows in the past. For FY24 and FY23, the company reported negative cash flows from operating activities of Rs 3.48 crore and Rs 3.63 crore, respectively. Any continued negative cash flows could impact the company’s liquidity, ability to fund operations, and overall financial stability.
A major portion of the company’s revenue comes from its top key customers. Any failure to retain these key customers, expand the customer base, or a loss of business from these clients can adversely affect the company’s business and financial standing.

Balaji Phosphates Limited Financials

*All values are in Rs. Cr
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Application Details of Balaji Phosphates Limited IPO

Apply asPrice bandApply upto
Regular66 - 70₹2 - 5 Lakh
High Networth Individual66 - 70₹2 - 5 Lakh
For Balaji Phosphates Limited IPO, eligible investors can apply as Regular.