Schedule of Indian Phosphate
| Issue open date | 26 Aug 2024 |
| Issue close date | 29 Aug 2024 |
| UPI mandate deadline | 29 Aug 2024 (5 PM) |
| Allotment finalization | 30 Aug 2024 |
| Refund initiation | 02 Sep 2024 |
| Share credit | 02 Sep 2024 |
| Listing date | 03 Sep 2024 |
| Mandate end date | 13 Sep 2024 |
| Lock-in end date for anchor investors (50%) | 30 Sep 2024 |
| Lock-in end date for anchor investors (remaining) | 28 Nov 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Indian Phosphate
Established in 1998, the company produces Linear Alkyl Benzene Sulfonic Acid (LABSA 90%), an anionic surfactant used in cleaning products. It also manufactures Single Super Phosphate (SSP) and Granules Single Super Phosphate (GSSP), fortified with Zinc and Boron, for agricultural use. The company’s manufacturing facility is located in Girwa district, Udaipur, Rajasthan, in proximity to sources of key raw materials such as sulphuric acid and rock phosphate, essential for its production processes. The company operates in several states including Punjab, Bihar, Gujarat, and Haryana.
Financials of Indian Phosphate
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹67.36 crores |
| Fresh Issue | ₹67.36 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| New Facility at SIPCOT for LABSA, Sulphuric acid, and Magnesium sulphate | 33.18 (49.26%) |
| Working Capital requirements | 24.90 (36.97%) |
| General corporate purposes | 9.28 (13.77%) |
Strengths
- Cost-effective operations: The company leverages over three decades of experience in cost-efficient sourcing and manufacturing, which helps reduce operational costs and optimize supply chain management.
- Strong quality assurance: The company has a well-equipped testing division and an in-house NABL-approved laboratory that ensures stringent quality control throughout the manufacturing process.
- Experienced management team: The management team has extensive expertise in the fertilizer and chemical industries, driving growth and strategic decision-making.
Risks
- Corporate guarantee exposure: The company has extended a ₹105 crore corporate guarantee for a group company, Elysian Hotels. If the group company defaults, the lender could enforce the guarantee, severely affecting the company’s financial position, cash flows, and reputation.
- Single customer dependency: The company is heavily dependent on Hindustan Unilever Limited, contributing 78.66% of revenue in FY 2024. Any reduction in business from this customer could severely impact the company’s financial health and growth prospects.
- Agriculture sector dependency: The fertilizer business is highly dependent on the agricultural sector, which is affected by factors such as weather, monsoons, and cropping patterns. Adverse developments could reduce demand for fertilizers and impact revenue.
- Logistics and transportation risk: Reliance on third-party logistics providers poses risks of disruptions, delays, or rising costs, which could increase operational expenses and affect the timely delivery of products.