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.
Business Areas of Indian Phosphate Limited IPO GMP 1. 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. 1. 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.
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.
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.
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%
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
Post-IPO Shareholding – Pre-Issue Shareholding: 18,185,609 shares (100%) Post-Issue Shareholding: 24,989,609 shares
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.