Balaji Phosphates Listing: Stock makes decent market debut, lists with 7% premium at ₹75

Balaji Phosphates IPO Listing: Balaji Phosphates made a decent debut on Dalal Street today, March 7, with its shares listing at ₹75 each on the NSE SME, a 7.14% premium over the issue price of ₹70. The stock, further gained momentum after listing, reaching ₹78, which is 11.40% higher than the IPO price.

The SME IPO, valued at ₹50.11 crore, was open for subscription from February 28, 2025, to March 04, 2025, with a price band of ₹70 per share. The issue is a combination of a fresh issue of 59.40 lakh shares aggregating to ₹41.58 crores and an offer for sale of 12.18 lakh shares aggregating to ₹8.53 crores.

The IPO received a muted response, with the issue subscribed only 1.21 times. The non-institutional investors' portion was subscribed 1.34 times, while the QIB portion saw a subscription of 1.26 times. According to exchange data, the retail portion was booked 1.09 times.

The proceeds from the IPO will be allocated for capital improvements to establish a warehouse at the subsidiary’s manufacturing site, upgrade current facilities, meet working capital requirements, and assist with overall corporate goals.

About the company

The company specializes in manufacturing and supplying Single Super Phosphate (SSP) in both powdered and granulated formats, as well as NPK granulated and mixed fertilizers and zinc sulfate, all of which adhere to the Fertilizer Control Order of India. It markets its products under the brands ‘RATNAM’ and ‘BPPL’ to various clients, including retailers, wholesalers, and state-owned cooperatives, with the ultimate users being farmers.

In the fiscal year 2024, the company achieved a revenue of ₹15,154.63 lakhs, an EBITDA of ₹1,209.70 lakhs, and a PAT of ₹604.05 lakhs. For the five-month period ending August 24, the company reported a revenue of ₹5,337.06 lakhs, an EBITDA of ₹572.55 lakhs, and a PAT of ₹414.65 lakhs.

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