Indian Phosphate
Book Building issueSME₹67.36 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹67.36 Cr
1 lot at cut-off
₹1,18,800
Lot size
1,200shares
Open
26 Aug 2024
Close
29 Aug 2024
Allotment
30 Aug 2024
Listing
03 Sep 2024
Listing performance
Issue price
₹99
Listed at
₹188.10
Listing-day close
₹178.70
Latest price
₹73.65
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
-25.61%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Aug 2024 – 29 Aug 2024
- Listing date
- 03 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹99 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹67.36 Cr
- Market cap at offer price
- ₹247 Cr
- Promoter holding
- 100.00% → 72.77% pre-issue → post-issue
- ISIN
- INE0DHF01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- Plot 638, Sector-11, Udaipur City, Girwa, Girwa-, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 19,28,400 | — | — |
| Market maker | 3,73,200 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹99
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,18,800 |
| S-HNI (min) | 2 | 2,400 | ₹2,37,600 |
| S-HNI (max) | 8 | 9,600 | ₹9,50,400 |
| B-HNI (min) | 9 | 10,800 | ₹10,69,200 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
19,28,400
Anchor portion
₹19.09 Cr
at ₹99 per share
Valuation and performance
Valuation at offer price
₹99 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.65 | 4.84 |
| P/E (×) | 14.89 | 20.45 |
| Price to book (×) | 2.23 | — |
| Market cap | — | ₹247 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 16.63%
- ROCE
- 20.93%
- Debt / equity
- 0.50
- PAT margin
- 1.91%
- NAV per share
- ₹44.54
- Price to book
- 2.23
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Indian Phosphate
Indian Phosphate Limited, incorporated on December 14, 1998, is a manufacturing company engaged in the production of Linear Alkylbenzene Sulphonic Acid (LABSA 90%), an anionic surfactant used in detergent formulations, and Single Super Phosphate (SSP) and Granules Single Super Phosphate (GSSP) fertilizers manufactured to Fertilizer Control Order standards. The company also produces fortified SSP products with zinc and boron. Operating from a facility in Umarda, Girwa district, Udaipur, Rajasthan, close to raw material supplies, the company sources Linear Alkylbenzene from IOCL, Nirma, and Reliance Industries. Over the past five years, the company has focused on fortified SSP products, now generating over 80% of SSP as fortified variants. The company is planning expansion with a new manufacturing facility in Tamil Nadu for LABSA, Sulphuric Acid, and Magnesium Sulphate production.
Company Analysis
from RHPIndian Phosphate Limited manufactures Linear Alkylbenzene Sulphonic Acid (LABSA 90%), Single Super Phosphate (SSP) fertilizer, and fortified fertilizer products, operating in the chemicals and agricultural inputs sectors.
Indian Phosphate Limited, incorporated on December 14, 1998, is a manufacturing company engaged in the production of Linear Alkylbenzene Sulphonic Acid (LABSA 90%), an anionic surfactant used in detergent formulations, and Single Super Phosphate (SSP) and Granules Single Super Phosphate (GSSP) fertilizers manufactured to Fertilizer Control Order standards. The company also produces fortified SSP products with zinc and boron. Operating from a facility in Umarda, Girwa district, Udaipur, Rajasthan, close to raw material supplies, the company sources Linear Alkylbenzene from IOCL, Nirma, and Reliance Industries. Over the past five years, the company has focused on fortified SSP products, now generating over 80% of SSP as fortified variants. The company is planning expansion with a new manufacturing facility in Tamil Nadu for LABSA, Sulphuric Acid, and Magnesium Sulphate production.
Specialty chemicalsAgrochemicalsFertilizer manufacturing
Objects of the Issue
- Setting up a new facility at SIPCOT Industrial Park, Phase – I, Cuddalore District ('C' District) Plot(s) - Plot No.C17/A, Tamil Nadu for manufacturing of LABSA 90%, Sulphuric Acid and Magnesium Sulphate ₹3,318.16 Lakhs p.25
- Working Capital Requirement ₹2,490.00 Lakhs p.25
- General Corporate Purpose p.25
- Setting up a new manufacturing facility at SIPCOT Industrial Park Phase-I, Kudikadu Village, Cuddalore District, Tamil Nadu for manufacturing of Sulphuric Acid, LABSA 90%, and Magnesium Sulphate ₹3,318.16 lakhs p.92
- To Meet Working Capital Requirements ₹2,490.00 lakhs p.92
- General Corporate Purposes p.92
- Not specified in this document section
Issue Structure
- Total Issue
- 6804000 Equity Shares of ₹10/- each
- Fresh Issue
- 6804000 Equity Shares of ₹10/- each aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Face Value
- ₹10/- each
Business Model
The company earns revenue through the manufacture and sale of LABSA 90% for use in detergent formulations and fortified and non-fortified Single Super Phosphate fertilizers for agricultural use. Revenue is derived from sales to end customers (primarily Hindustan Unilever Limited for LABSA products) and agricultural dealers for fertilizer products. The company also receives subsidy income from the Government of India on fertilizer sales.
Business Segments
An anionic surfactant used in the formulation of detergent powders, cakes, toilet cleaners and liquid detergents
Fertilizer manufactured and supplied as per Fertilizer Control Order standards in powder and granulated form, with and without fortification with zinc and boron, used in agriculture
Granulated form of Single Super Phosphate fertilizer, manufactured to Fertilizer Control Order standards, with fortification options including zinc and boron
An anionic surfactant used in the formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents. Also used in textile industry for washing and mercerizing cotton and in pesticides to improve spray quality.
Manufactured and supplied as per the standards of Fertilizer Control Order of India in powder and granulated form as well as fortified with zinc and boron. Used in agriculture industry.
Linear Alkylbenzene Sulphonic Acid (LABSA 90%) is an anionic surfactant used in formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents. It acts as an active matter in detergents and is also used in pesticides to improve spray quality and in textile industry for washing and mercerizing cotton.
Single Super Phosphate (SSP) is a phosphatic fertilizer manufactured by reacting rock phosphate with sulphuric acid, converting insoluble phosphate into soluble forms. SSP is used to replenish phosphorus (P) and sulphur (S) in soil for plant growth and improving soil health, available in powder and granulated forms, including fortified variants with zinc and boron.
Manufactures and supplies Single Super Phosphate fertilizer in powder and granulated form, fortified with zinc and boron, used in agriculture as per Fertilizer Control Order of India standards
Manufactures LABSA 90%, an anionic surfactant used in formulation of detergent powders, cakes, toilet cleaners, and liquid detergents; operates two sulphonation plants with combined capacity of 350 MT/day
Manufactures and sells spent sulphuric acid as a by-product or traded good
Linear Alkylbenzene Sulphonic Acid used in formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents
Single Super Phosphate (SSP) and Granules Single Super Phosphate (GSSP) fertilizer manufactured and supplied as per Fertilizer Control Order standards in powder and granulated form, fortified with zinc and boron
SWOT Analysis
Strengths
- • Strategic location with proximity to raw materials for both LABSA and SSP manufacturing(p.101)
- • Established production capability with significant LABSA capacity utilization(p.114)
- • Diversified product portfolio across detergent and fertilizer segments(p.101)
- • Stable financial performance with consistent profitability across periods(p.113)
- • Cost-effective manufacturing and strategic location with proximity to raw materials and transport infrastructure(p.156)
- • Quality assurance capabilities with NABL-approved in-house laboratory(p.156)
- • Experienced promoter with three decades of industry expertise(p.156)
- • Access to rock phosphate supply through government enterprise proximity and mining interests(p.148)
- • Backward integration strategy with shareholding in rock phosphate beneficiation company(p.146)
- • Established production capacity in phosphatic fertilizers and surfactants(p.181)
- • Diversified product portfolio spanning fertilizers and chemicals(p.181)
- • Strong revenue base and profitability(p.220)
- • Experienced promoter with 28+ years in phosphatic fertilizer and surfactants manufacturing(p.208)
- • Successfully expanded fortified fertilizer production to over 80%(p.182)
- • Recent capacity expansion and diversification initiatives(p.182)
- • Government support through subsidy schemes(p.233)
- • Established manufacturing presence in strategic locations with integrated facilities(p.271)
- • Diversified product portfolio spanning chemicals and fertilizers(p.271)
- • Significant installed capacity across LABSA and fertilizer production(p.272)
- • Government support through subsidies on SSP fertilizer products(p.276)
- • Operational infrastructure including pollution control and renewable energy(p.272)
Weaknesses
- • High customer concentration risk(p.33)
- • Extreme dependence on single customer(p.37)
- • No long-term supplier contracts(p.38)
- • No ownership of manufacturing facilities(p.39)
- • Significant contingent liabilities(p.34)
- • Corporate guarantee exposure(p.33)
- • Negative operating cash flow(p.39)
- • Outstanding litigation including criminal complaints(p.35)
- • High customer concentration risk with top customer representing 78.66% of revenue(p.114)
- • Declining revenue from operations with 8.39% contraction in FY 2023-24(p.113)
- • Significant reliance on few raw material suppliers with top supplier representing 34.15% of purchases(p.114)
- • Low operating margins with EBITDA margin of only 3.27%(p.113)
- • Negative operating cash flows in FY 2023-24 of ₹191.11 lakhs despite profitable operations(p.113)
- • High short-term borrowings of ₹3,883.34 lakhs indicating working capital strain(p.60)
- • Heavy dependence on government fertilizer subsidy policy(p.156)
- • High working capital intensity of the business(p.156)
- • Declining capacity utilization in SSP production(p.163)
- • Significant decline in revenue and margin compression in FY2024(p.157)
- • Significant short-term debt obligations(p.219)
- • Concentration of shareholding in promoter(p.222)
- • Working capital constraints evident in trade payables(p.219)
- • High reliance on raw material suppliers; LAB sourced from only three major suppliers(p.181)
- • Capital work-in-progress indicates incomplete capacity projects(p.228)
- • Subsidiary company operating at a loss(p.186)
- • Extreme dependence on limited customer base for revenue(p.283)
- • High reliance on few raw material suppliers(p.283)
- • Significant leverage and debt burden relative to equity(p.264)
- • Minimal cash reserve insufficient for operational contingencies(p.247)
- • Multiple pending criminal proceedings related to product quality(p.287)
- • Significant contingent liabilities including corporate guarantees(p.269)
Opportunities
- • Expansion of manufacturing capacity(p.41)
- • Product portfolio expansion(p.41)
- • Growth in fortified fertilizer demand(p.24)
- • Geographic expansion(p.49)
- • Capacity expansion for LABSA production with new facility planned for 100 MT/day(p.94)
- • Backward integration through proposed 200 MT/day Sulphuric Acid production facility(p.92)
- • Geographic expansion to South India with new manufacturing plant in Tamil Nadu to reduce delivery times(p.94)
- • Entry into new product category with Magnesium Sulphate manufacturing at 60 MT/day capacity(p.92)
- • Growth in agricultural sector supporting SSP fertilizer demand(p.101)
- • Geographic expansion into South Indian markets through Tamil Nadu facility(p.145)
- • Expansion into Maharashtra SSP production facility(p.145)
- • Government freight subsidy on SSP to reach remote states(p.146)
- • Backward integration into sulphuric acid production(p.145)
- • Venture into NPK complex fertilizer and new value-added products(p.157)
- • Fortified SSP demand growth with zinc and boron content(p.145)
- • Expansion into government subsidy schemes for fortified fertilizers(p.182)
- • Downstream expansion strategy through mini-buffers and cooperative societies(p.183)
- • Geographic expansion through new plant projects(p.184)
- • Access to owned mineral resources(p.184)
- • Broadened manufacturing mandate to include new chemical products(p.183)
- • Capacity expansion into new geographic regions including Tamil Nadu and Maharashtra(p.295)
- • Potential for margin expansion through value-added fortified fertilizer products(p.271)
- • Government initiatives encouraging fortified fertilizer production(p.271)
- • Access to credit facilities enabling growth investments(p.273)
Threats
- • Agricultural sector dependency and monsoon risk(p.41)
- • Government subsidy reduction risk(p.41)
- • High competitive intensity(p.49)
- • Raw material price volatility(p.38)
- • Regulatory compliance risks(p.36)
- • Transportation and logistics dependency(p.43)
- • Single manufacturing facility concentration(p.41)
- • Seasonal and cyclical business nature(p.46)
- • Adverse revisions to India's credit ratings may restrict access to financing and increase borrowing costs(p.54)
- • Changes in taxation system including GST and GAAR create uncertainty in tax liabilities(p.54)
- • Rising inflation in India may limit ability to pass cost increases to customers, impacting margins(p.54)
- • Subject to environmental, health and safety regulations with potential for increased compliance costs(p.55)
- • Interest rate fluctuations could significantly increase debt servicing costs and impact operations(p.55)
- • Equity share price volatility post-listing with no established trading market prior to IPO(p.54)
- • Economic recession impacting fertilizer demand(p.156)
- • Natural calamities affecting operations and agricultural production(p.156)
- • Global economic slowdown and weak growth outlook(p.124)
- • Geopolitical tensions and conflict escalation risks(p.124)
- • Competition from numerous market players with low entry barriers(p.160)
- • Volatility in raw material and commodity prices(p.126)
- • Volatility in raw material prices and foreign exchange(p.181)
- • Dependence on government subsidy policy for fertilizer sales(p.231)
- • Agricultural sector cyclicality and monsoon dependency(p.181)
- • Outstanding income tax demands and show-cause notices(p.242)
- • Corporate guarantee exposure to related party(p.242)
- • Volatility in raw material prices driven by crude oil fluctuations(p.275)
- • Government subsidy reductions severely impacting fertilizer revenue(p.276)
- • Intense competitive market and pricing pressure(p.284)
- • Regulatory and quality compliance risks affecting sales(p.287)
- • Seasonality in fertilizer business dependent on agricultural cycles(p.283)
- • External economic shocks and macroeconomic uncertainties(p.273)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ravindra Singh | Promoter | 78.88% | — |
| Mamta Arora | Promoter | 10.06% | — |
| Rushil Arora | Promoter | 5.53% | — |
| Mr. Ravindra Singh | Promoter | 78.88% | 57.40% |
| Mrs. Mamta Arora | Promoter | 10.06% | 7.32% |
| Mr. Rushil Arora | Promoter | 5.53% | 4.02% |
| Mrs. Rushita Arora | Promoter Group | 5.53% | 4.02% |
| Ravindra Singh | Promoter | — | — |
| Devendra Singh | Promoter | — | — |
| Pritam Singh | Promoter | — | — |
| Mr. Ravindra Singh | Promoter | 89.23% | 78.88% |
| Mrs. Mamta Arora | Promoter | 10.06% | 10.06% |
| Mr. Rushil Arora | Promoter | 0.00% | 5.53% |
| Ravindra Singh | Promoter/Chairman cum Managing Director | 78.88% | — |
| Mamta Arora | Promoter | 10.06% | — |
| Rushil Arora | Promoter | 5.53% | — |
| Rushita Arora | Promoter | 5.53% | — |
Leadership
Ravindra Singh · Chairman cum Managing Director
Rushil Arora · Executive Director
Rohit Paragbhai Parmar · Chief Financial Officer
Khushboo Sharma · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Indian Phosphate IPO FAQs
What is the lot size of Indian Phosphate IPO?
The minimum lot size of Indian Phosphate IPO is 1,200 shares. One lot costs ₹1,18,800 at the cut-off price.
When does Indian Phosphate IPO open and close?
Indian Phosphate IPO opened for subscription on 26 Aug 2024 and closed on 29 Aug 2024.
What is the listing date of Indian Phosphate IPO?
Indian Phosphate IPO listed on 03 Sep 2024.