The initial public offering (IPO) of Indian Phosphate took place from August 26 to August 29, with shares priced between ₹94 and ₹99 each. The company, primarily focused on producing Linear Alkylbenzene Sulphonic Acid (LABSA) at 90% purity for various detergent forms, also manufactures “Single Super Phosphate” (SSP) and “Granules Single Super Phosphate” (GSSP) fertilizers. These fertilizers meet the standards set by the Fertilizer Control Order of India and are available in different forms, including fortified varieties.
Indian Phosphate’s manufacturing facility is strategically located in Udaipur, Rajasthan, close to raw material sources. The company has established a strong presence in several key states, including Punjab, Bihar, Gujarat, and Maharashtra, among others. Despite its regional strength, Indian Phosphate saw a decline in its financial performance, with a 27% drop in profit after tax and a 7% decrease in revenue between March 31, 2023, and March 31, 2024.
The IPO was well-received, with the subscription reaching 82.07 times on the third day. The retail portion was oversubscribed by 132.55 times, while the non-institutional investor (NII) portion was booked 61.84 times, and the Qualified Institutional Buyers (QIB) portion 8.90 times. The company received bids for 36,95,02,800 shares against the 45,02,400 shares on offer.
The IPO aims to raise ₹67.36 crore through the issuance of 6,804,000 equity shares, with no “offer for sale” component. The funds will be used for working capital, establishing a new manufacturing plant in Tamil Nadu for producing sulfuric acid, LABSA 90%, and magnesium sulfate, and for general corporate purposes.
The grey market premium (GMP) for Indian Phosphate shares is currently +₹135, indicating a strong demand. Based on this premium and the upper end of the IPO price band, the estimated listing price is ₹234 per share, representing a 136.36% increase over the IPO price of ₹99.
Beeline Capital Advisors Pvt Ltd is the book-running lead manager for the IPO, with Bigshare Services Pvt Ltd as the registrar and Spread X Securities as the market maker.