Indian Phosphate Limited IPO GMP: Investors are greatly interested in the Indian Phosphate Limited Initial Public Offering (IPO) owing to its high oversubscription and the company’s plans for growth. The subscription period has now ended and this calls for an examination of what the IPO means for investors as well as where Indian Phosphate Limited stands in the market. This blog offers all-embracing analysis of the firm, its financial standing, and future prospects.
Table of Contents
About Indian Phosphate Limited ipo gmp:
In 1998, Indian Phosphate Limited was founded and has since then become one of the foremost contenders in chemical and fertiliser sectors within India. The company is known as a manufacturer of Linear Alkyl Benzene Sulfonic Acid (LABSA) 90%, an important surfactant that is used in making different types of household cleaners such as washing powders, toilet cleaners, liquid detergents etc. The reason as to why LABSA is important in manufacturing of detergents is because it has high efficacy for cleaning purposes and can effectively break down dirt plus its biodegrades thus being eco-friendly.
Moreover, Indian Phosphate Limited also produces Single Super Phosphate (SSP) and Granules Single Super Phosphate (GSSP). These types of fertilisers play significant roles in improving soil fertility which results in higher crop yields. Essential minerals like Zinc and Boron are included in these fertilisers to assist plant growth through SSP and GSSP.
The production unit of the company sits at the right point within Girwa, Udaipur in Rajasthan. Its proximity to two important inputs that aid in producing the goods makes it suitable. These are 98% sulphuric acid and also rock phosphate. The producers of the third most essential input linear alkyl benzene (LAB) include Indian Oil Corporation Limited (IOCL), Nirma Ltd., and Reliance Industries Ltd. With such an environment, Indian Phosphate Limited is able to produce cheaply since they can easily access these raw materials and there are established supply chains. This has enabled a growing market for their products.
Business Areas of Indian Phosphate Limited IPO GMP
Indian Phosphate Limited operates in two primary business segments:
- Chemical Production:
- LABSA 90%, the company’s primary product, is a vital ingredient used in making various detergents and cleaning products. It is mostly preferred due to its high efficiency in removing stains and being eco-friendly. Because of its know-how in LABSA production, Indian Phosphate Limited has become a primary supplier for bigger multinational corporations such as Hindustan Unilever Limited (HUL), with whom it has maintained a relationship since 2009.
- Fertiliser Production:
- SSP and GSSP fertilisers are also manufactured by Indian Phosphate Limited. These products are available in both powder and granule forms, and they are fortified with nutrients to improve their effectiveness. The major role of SSP is to replenish phosphorus in soil which is vital for growing plants. Furthermore, there are fortified versions with Zinc and Boron that would help in charged deficiency towards micro-elements resulting in better harvests. Indian Phosphate’s fertilisers have important uses in Agriculture States among India such as Punjab, Gujarat and Uttar Pradesh.
Geographical Presence OF Indian Phosphate Limited
Indian Phosphate Limited has a substantial presence in several Indian states, including:
- Punjab
- Bihar Gujarat
- Haryana
- Madhya Pradesh
- Maharashtra
- Rajasthan
- Uttar Pradesh
- Himachal Pradesh
- West Bengal
- Uttarakhand
This extensive geographical footprint guarantees that the company’s products are available to a vast number of customers, including important agricultural hubs.
Financial Performance Over the Last Year OF Indian Phosphate Limited IPO GMP
Indian Phosphate Limited had significant challenges during the fiscal year 2023-2024. In comparison to the previous fiscal year, the company’s revenue decreased by 7% and its profit after tax (PAT) decreased by 27%. Several factors have contributed to this reduction, including higher raw material costs, market instability, and supply chain disruptions.
Below is a detailed breakdown of the company’s financials over the last four years:
| Financial Metric | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Total Assets (₹ Lakhs) | 25,518.6 | 17,407.45 | 10,789.93 | 6,313.71 |
| Revenue (₹ Lakhs) | 71,757.81 | 77,093.2 | 55,838.56 | 41,501.81 |
| Profit After Tax (₹ Lakhs) | 1,210.21 | 1,659.53 | 1,616.61 | 509.44 |
| Net Worth (₹ Lakhs) | 8,099.06 | 6,751.8 | 5,092.27 | 3,475.66 |
| Reserves and Surplus (₹ Lakhs) | 6,280.56 | 6,480.37 | 4,820.84 | 3,204.23 |
| Total Borrowing (₹ Lakhs) | 4,023.17 | 1,535.48 | 1,830.58 | 434.04 |
Revenue vs. Profit After Tax (PAT)
The table above demonstrates a consistent increase in assets over the previous four years, with total assets rising from ₹6313.71 lakhs in 2021 to ₹25,518.6 lakhs in 2024. Yet, the decrease in revenue and profit after tax for the last financial year suggests there were some operational stumbling blocks, which may have been caused by changing market situations.
Key Financial Ratios OF Indian Phosphate Limited
- Return on Equity (ROE): 18.14%
- Return on Capital Employed (ROCE): 20.93%
- Return on Net Worth (RoNW): 16.63%
- Price to Book Value (P/BV): 2.23
- PAT Margin: 1.91%
This company’s potential to create profit bearing in mind the investors’ equity plus total capital utilised is represented by the performance indicators herein described. Notwithstanding challenges experienced during preceding fiscal year; Financial ratios for Indian Phosphate Ltd remain sound demonstrating its solid business concept.
Indian Phosphate Limited IPO GMP Details
The Indian Phosphate Limited IPO is a book-built issue totaling ₹67.36 crores, with the entire issue comprising a fresh issue of 68.04 lakh shares. The IPO was open for subscription from August 26, 2024, to August 29, 2024. The company’s shares are expected to be listed on the NSE SME platform on September 3, 2024.
IPO Pricing and Lot Size
- Price Band: ₹94 to ₹99 per share
- Minimum Lot Size: 1,200 shares
- Minimum Investment Amount (Retail): ₹118,800
- Minimum Investment Amount (HNI): ₹237,600 for 2 lots
Subscription Details
The Indian Phosphate IPO was highly successful, with the issue being subscribed 260.90 times. The breakdown of subscriptions by investor category is as follows:
| Investor Category | Shares Offered | Subscription (Times) | Shares Bid For |
| Qualified Institutional Buyers (QIBs) | 12,86,400 | 181.58 | 23,35,89,600 |
| Non-Institutional Investors (NIIs) | 9,64,800 | 439.23 | 42,37,69,200 |
| Retail Investors (RIIs) | 22,51,200 | 229.81 | 51,73,38,000 |
| Total | 45,02,400 | 260.90 | 1,17,46,96,800 |
The overwhelming response, especially from NIIs and retail investors, demonstrates the market’s confidence in Indian Phosphate Limited’s growth prospects.
Indian Phosphate Limited Shareholding Pattern
Prior to IPO, 100% of the company’s shares were held by promoters Mr. Ravindra Singh, Mrs. Mamta Arora, and Mr. Rushil Arora. After IPO, however, new shares will be allocated to the public that effectively alters shareholding pattern. This dilutes the promoter stake even as it brings in more money for future company expansion plans.
Post-IPO Shareholding
- Pre-Issue Shareholding: 18,185,609 shares (100%)
- Post-Issue Shareholding: 24,989,609 shares
This post-issue dilution is necessary to raise funds for the company’s future projects, including the establishment of a new manufacturing facility.
Future Forecast and Growth Plans OF Indian Phosphate Limited IPO GMP
The IPO revenues would be utilised largely to develop a new manufacturing plant at the SIPCOT Industrial Park Phase-I in Kudikadu Village, Cuddalore District, Tamil Nadu. This new factory will specialise in the production of sulphuric acid, LABSA 90%, and magnesium sulphate.
Key Objectives of the IPO:
- Setting Up a New Manufacturing Facility:
- The new facility will enhance the company’s production capacity, allowing it to meet the growing demand for its products. The facility’s location in Tamil Nadu is strategic, given the proximity to key raw materials and major markets.
- Working Capital Requirements:
- A portion of the funds will be used to meet the company’s working capital needs. This will ensure smooth operations and the ability to respond to market demands promptly.
- General Corporate Purposes:
- The remaining funds will be allocated to general corporate purposes, which could include debt reduction, operational improvements, and other corporate initiatives.
Indian Phosphate Limited: Market Potential and Growth Prospects
Indian Phosphate Limited is well-positioned to capitalise on the growing demand for both chemical and fertiliser products in India. The Indian government’s focus on agriculture and the growing awareness of sustainable farming practices are expected to drive demand for SSP and GSSP fertilisers. Additionally, the increasing demand for household cleaning products presents a significant growth opportunity for LABSA.
The company’s long-standing relationship with HUL and its expansion into new markets with the upcoming manufacturing facility in Tamil Nadu are expected to drive revenue growth in the coming years. Furthermore, the company’s strong financial ratios and strategic growth plans make it an attractive investment for both institutional and retail investors.
Conclusion
Since its inception, this Indian Phosphate Limited IPO has been a big success as the offer was oversubscribed several times ahead of the deadline in most investor categories. Even though it encountered some financial problems last year, its strategic growth plans, strong market position and robust financial ratios indicate that there is hope for a more promising tomorrow.
For those investors who want to invest medium-term or longer term, Indian Phosphate Limited is an exciting option. This is due to good growth prospects resulting from the firms’ network within the industry and enduring presence in the market.
FAQs
- When was the Indian Phosphate IPO open for subscription?
- The IPO was open from August 26, 2024, to August 29, 2024.
- Is it possible to get a specific price range for an Indian Phosphates IPO?
- The price band was set at ₹94 to ₹99 per share.
- What will be the utilisation of funds from the IPO?
- The funds will be used to set up a new manufacturing facility, meet working capital requirements, and for general corporate purposes.
- Who are the primary promoters of Indian Phosphate Limited?
- The major promoters are Mr. Ravindra Singh, Mrs. Mamta Arora, and Mr. Rushil Arora.
- What is the listing date for the Indian Phosphate IPO?
- The shares are expected to list on September 3, 2024, on NSE SME.
- What is the minimum investment amount for retail investors?
- The minimum investment amount for retail investors is ₹118,800 for 1,200 shares.
- How was the IPO subscription received?
- The IPO was oversubscribed by 260.90 times, with significant interest from NIIs and retail investors.
- What are Indian Phosphate Limited’s future growth plans?
- The company plans to expand its production capacity by setting up a new manufacturing facility in Tamil Nadu and aims to capitalise on the growing demand for its products in both the chemical and fertiliser sectors.
In summary, Indian Phosphate Limited is at a pivotal point in its growth journey, with promising prospects ahead. Investors should keep a close watch on this company as it embarks on its next phase of expansion and growth
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
