Indian Phosphate IPO booked over 82 times on third bidding day, retail portion sees huge demand; check GMP

The initial public offering (IPO) of Indian Phosphate began on Monday, August 26 and concluded on Thursday, August 29. The price range for Indian Phosphate IPO shares is between ₹94 and ₹99 per share, with a face value of ₹10. Multiple shares are available, and at least 1200 shares are available for bidding.

The primary focus of the company is the production of Linear Alkylbenzene Sulphonic Acid (LABSA) at 90% purity, which is widely used as an anionic surfactant in the production of various detergent forms such as powders, cakes, toilet cleaners, and liquid detergents. Additionally, the company is involved in the manufacturing of both "Single Super Phosphate" (SSP) fertilizer and "Granules Single Super Phosphate" (GSSP) Fertilizer, meeting the standards set by the Fertilizer Control Order of India, available in powdered, granulated, and fortified forms with zinc and boron.

The manufacturing facility is located in Udaipur, Rajasthan, strategically positioned near the raw material supply sources. The company has established a strong presence in key states including Punjab, Bihar, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Himachal Pradesh, West Bengal, and Uttarakhand.

As per the red herring prospectus, the company's listed peer is Rama Phosphates Ltd.

Between March 31, 2024, and March 31, 2023, Indian Phosphate Limited's profit after tax (PAT) plummeted by -27% and its revenue by -7%, respectively.

Indian Phosphate IPO subscription status

Indian Phosphate IPO subscription status is 82.07 times, on day 3.

The retail portion was subscribed 132.55 times, and NII portion was booked 61.84 times. Qualified Institutions Buyers are booked 8.90 times.

The company has received bids for 36,95,02,800 shares against 45,02,400 shares on offer, according to data on chittorgarh.com

Indian Phosphate IPO subscription status is 12.10 times, on day 1, and the issue was booked 37.75 times on the second bidding day.

Indian Phosphate IPO details

The Indian Phosphate IPO, valued ₹67.36 crore, includes a fresh issuance of 6,804,000 equity shares with a face value of ₹10. There is no "offer for sale" component.

The proceeds from the new issue will be used for the following purposes: to fulfill working capital needs; to establish a new manufacturing plant in Tamil Nadu for the production of sulfuric acid, LABSA 90%, and magnesium sulphate; and for general corporate purposes.

The Indian Phosphate IPO's book running lead manager is Beeline Capital Advisors Pvt Ltd, while the issue's registrar is Bigshare Services Pvt Ltd. Spread X Securities is the market maker for the IPO of Indian Phosphate.

Indian Phosphate IPO GMP today

Indian Phosphate IPO grey market price is +135. This indicates Indian Phosphate share price were trading at a premium of ₹135 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Indian Phosphate share price was indicated at ₹234 apiece, which is 136.36% higher than the IPO price of ₹99.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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