Balaji Phosphates Limited IPO

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Balaji Phosphates Limited is engaged in the manufacture and supply of phosphate-based fertilizers, catering to diverse agricultural needs. The company’s product portfolio includes:
i. Single Super Phosphate (SSP) – Powder & Granulated Forms               ii. NPK Granulated & Mixed Fertilizers
iii. Zinc Sulphate (ZnSO₄)

All products comply with the Fertilizer Control Order (FCO) of India, ensuring they meet the necessary agricultural standards.

Product Applications & Benefits

i. Single Super Phosphate (SSP)                                     ii. Zinc Sulphate (ZnSO₄)
iii. NPK Granulated & Mixed Fertilizers                         iv. Value-Added Fortified SSP

Market Reach & Distribution

The company markets its fertilizers under the brands “RATNAM” and “BPPL”, reaching:
i. Retailers & Wholesalers                    ii. State-Owned Cooperatives                          iii. Farmers (End-Users)

Primary Target Markets:
i. Madhya Pradesh                                 ii. Chhattisgarh                                                    iii. Maharashtra
iv. Telangana                                           v. Andhra Pradesh

These regions have a strong agricultural base, making them key contributors to Balaji Phosphates’ growth.

Conclusion

Balaji Phosphates Limited is a well-established player in India’s phosphate fertilizer market, catering to diverse agricultural needs. With a strong product portfolio, experienced leadership, a robust distribution network, and a commitment to quality, the company is well-positioned for sustained growth and expansion in the agricultural sector.

Objects of the Balaji Phosphates Limited IPO:

The company proposes to utilize the net proceeds from the Fresh Offer towards funding the following objects and achieve the benefits of listing on the NSE Emerge platform: i. To meet the capital expenditure requirements; ii. To meet the working capital requirements; and iii. General corporate purposes. Total number of share issue :- i. Fresh issue is 59,40,000 shares, ii. Offer for sale is 12,18,000 shares.
DRHP of Balaji Phosphates Limited IPO
RHP of Balaji Phosphates Limited IPO

Balaji Phosphates Limited IPO Details:

Open Date: Feb 28 2025
Close Date: Mar 04 2025
Total Shares: 71,58,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 50.11 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 66 - 70 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 07 2025

Promoters And Management:

Mohit Airen holds a Master's in Business Economics from Devi Ahilya Vishwavidyalaya, Indore, and is a Microsoft Certified Professional. With 20+ years of experience in managing corporate businesses, he has been associated with the company since September 16, 2013. His expertise includes client communication, collaboration, and expectations management. Alok Gupta, a Commerce graduate from Devi Ahilya University, Indore (1997), has 20+ years of experience in managing corporate businesses. He has been a Director of the company since September 16, 2013. Sunil Talwar was appointed as Director on April 8, 2023, to oversee marketing operations. With extensive experience in fertilizer marketing, he previously served as a consultant for the company for seven years.

Financials of Balaji Phosphates Limited IPO:

In Cr.
Particulars Aug 31, 2024 March 31, 2024 March 31, 2023 March 31, 2022
Revenue from Operations 53.37 151.54 144.54 123.65
Growth in Revenue 4.8% 16.90% 23.60%
GP Margins 34% 28.40% 30% 25.90%
EBITDA 5.72 12.09 11.67 7.92
EBITDA Margins 10.73% 8% 8.10% 6.40%
PAT 4.14 6.04 6.08 3.19
PAT Margins 7.80% 4% 4.20% 2.60%
ROCE 16.70% 19.80% 17.30%
D/E Ratio 0.91 0.95 0.91 0.87
Working Capital Cycle (Days) 341 107 102 69
CFOA -0.41 -3.48 -3.62 3.39

Comparison With Peers:

 
Companies Revenue EBITDA Margins PAT Margins D/E Ratio MCap P/E
Balaji Phosphates (FY 2024) 151.54 Cr. 8%% 4% 0.95 166.43 Cr. 27.55*
Coromandel International (TTM) 23,010 Cr. 11% 7% 0.06 49,062 Cr. 29.90
Paradeep Phosphate(TTM) 12,569 Cr. 8% 3.28% 1.16 7,312 Cr. 17.70
Rama Phosphate(TTM) 729 Cr. 4% 1.50% 0.33 318 Cr. 28.40
*Forward PE is 16.76 on the basis of FY 25 PAT. 

Recommendation on Balaji Phosphates Limited IPO:

Review and Recommendation of Balaji Phosphates IPO by team IZ is 3/10.

Lead Manager of Balaji Phosphates Limited IPO:

  1. Arihant Capital Markets Limited

Registrar of Balaji Phosphates Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Balaji Phosphates Limited 305, Utsav Avenue, 12/5 Usha Ganj Jaora Compound, Indore G.P.O., Indore- 452001 Phone: +919827090267 Email: balajiphosphate@gmail.com Website: https://www.balajiphosphates.com/2

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