Indian Phosphate is scheduled to hit the market on August 26, 2024 and close on August 29, 2024. Indian Phosphate plans to raise around ₹67.36 Cr through an IPO with a sale of up to 6,804,000 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.
Indian Phosphate Limited, founded in 1998, specializes in the production of Linear Alkyl Benzene Sulfonic Acid (LABSA 90%), a key anionic surfactant utilized in various cleaning products such as washing powders, toilet cleaners, and liquid detergents. In addition to LABSA, the company also manufactures Single Super Phosphate (SSP) and Granules Single Super Phosphate (GSSP), adhering to the Fertilizer Control Regulation of India. These fertilizers are available in both powder and granule forms and are enriched with essential nutrients like Zinc and Boron.
The manufacturing facility is strategically located in the Girwa district of Udaipur, Rajasthan, allowing easy access to vital raw materials, including 98% sulphuric acid and rock phosphate. Linear alkyl benzene (LAB) is obtained from leading suppliers such as IOCL, Nirma Ltd, and Reliance Industries. Indian Phosphate Limited serves a broad market across several states, including Punjab, Bihar, Gujarat, and more. As of March 31, 2024, the company employed 105 individuals.
Indian Phosphate IPO Details
Indian Phosphate IPO opens on August 26, 2024, and closes on August 29, 2024. The Listing date for Indian Phosphate IPO is on September 3, 2024. The price band for IPO is ₹94 to ₹99 per share and lot size of 1200 Shares.
| IPO Date | August 26, 2024 to August 29, 2024 |
| Listing Date | September 3, 2024 |
| Price | ₹94 to ₹99 per share |
| Lot Size | 1200 Shares |
| Issue Size | ₹67.36 Cr |
| Face Value | ₹10 per share |
Indian Phosphate IPO Tentative Timetable
Indian Phosphate opening date is August 26, 2024 and close date is August 29, 2024. The IPO allotment date is August 30, 2024. Therefund initiation of IPO is on September 2, 2024. The credit of shares in demat account is on September 2, 2024. The listing date is on September 3, 2024.
| Event | Date |
|---|---|
| IPO Opening | August 26, 2024 |
| IPO Closing | August 29, 2024 |
| IPO Allotment Date | August 30, 2024 |
| Refund Initiation | September 2, 2024 |
| Shares Credit to Demat | September 2, 2024 |
| Lisiting Date | September 3, 2024 |
Indian Phosphate IPO Lot Size
Lot Size of this IPO is 1200 shares. A retail-individual investor can apply for up to 1 lots (1200 shares or ₹118,800).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 1200 | ₹118,800 |
| Retail(Maximum) | 1 | 1200 | ₹118,800 |
| HNI (Minimum) | 2 | 2400 | ₹237,600 |
Indian Phosphate IPO Promoter Holding
| Pre Issue Share Holding | 100.00% |
| Post Issue Share Holding |
Indian Phosphate IPO Review
Indian Phosphate Ltd. (IPL) has made a mark in the Indian chemical and fertilizer industry. It mainly produces Linear Alkyl Benzene Sulphonic Acid (LABSA) 90%, which is an important ingredient in detergents and soaps, along with Single Super Phosphate (SSP) fertilizers. LABSA brings in most of the company’s revenue, while fertilizers contribute a smaller share. IPL has a long-term partnership with Hindustan Unilever Ltd. (HUL), a big name in the fast-moving consumer goods (FMCG) market, which depends on IPL’s LABSA for its products. To meet growing demand, IPL has expanded its manufacturing facilities, with plants in Rajasthan and new ones coming up in Tamil Nadu and Maharashtra. The company is focusing on integrating its operations and expanding geographically to meet market needs, especially in the cleaning products segment.
Financially, IPL has shown steady revenue growth, although profits have fluctuated due to factors like changing raw material prices and natural disasters. In FY24, IPL reported total income of ₹706.26 crore and a net profit of ₹13.47 crore on its own, but the consolidated figures showed slightly lower profits. The company plans to launch its first IPO to raise ₹67.36 crore, which will help improve its working capital and fund its manufacturing expansion. A portion of the IPO proceeds will go towards setting up a new facility at SIPCOT Industrial Park to produce LABSA, Sulphuric Acid, and Magnesium Sulphate. After the IPO, IPL’s market value is expected to reach ₹247.40 crore, reflecting its goals to grow and strengthen its market position. However, the declining profit margins in recent years due to rising costs and other challenges need careful attention.
The IPO is priced at a P/E ratio of 18.37 based on standalone earnings and 20.45 for consolidated earnings, indicating that it is priced quite fully. Still, the company's plans for expansion, particularly the new chemical manufacturing facility for HUL, position IPL for good growth in the medium to long term. The strong partnership with HUL ensures a reliable revenue source and highlights IPL’s role as an important supplier in the FMCG sector. Investors looking for a medium to long-term investment may find this IPO appealing because of the potential for cost savings and better profits once the new facilities start operating. The reviewer recommends subscribing to the IPO, acknowledging the company’s solid market position, growth plans, and promising future, even though the current pricing seems a bit high.
Indian Phosphate IPO Subscription Status (Bidding Details)
Table not foundIndian Phosphate IPO Broker Recommendations
- Capital Market: To be updated soon
- Anand Rathi: To be updated soon
- SMC Global: To be updated soon
- Arihant Capital: To be updated soon
Indian Phosphate IPO FAQs
What is Indian Phosphate IPO?
Indian Phosphate is issuing 6,804,000 equity shares with a face value of ₹10 each, totaling up to ₹67.36 Cr. The shares are being offered at a price of ₹94 to ₹99 each, with a minimum order quantity of 1200 shares.
Bigshare Services Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Indian Phosphate IPO will open?
Indian Phosphate will open on August 26, 2024 for QIB, NII, and Retail Investors.
When Indian Phosphate IPO will end?
Indian Phosphate will end on August 29, 2024.
What is Indian Phosphate IPO Size?
Indian Phosphate IPO size is ₹67.36 Cr.
What is Indian Phosphate IPO Price Band?
Indian Phosphate price band is ₹94 to ₹99 per share.
What is the Indian Phosphate IPO Allotment Date?
Indian Phosphate allotment date is August 30, 2024.
What is the Indian Phosphate IPO Listing Date?
Indian Phosphate listing date is September 3, 2024. The IPO is to be listed on BSE and NSE.
How to Indian Phosphate IPO through Zerodha?
To apply for the IPO “Indian Phosphate” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Indian Phosphate IPO through Upstox?
To apply for the IPO “Indian Phosphate” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Indian Phosphate IPO Allotment Status?
For Indian Phosphate IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Indian Phosphate IPO GMP?
You can check out here: Indian Phosphate IPO GMP. Check all IPO GMP here.