September 3, 2024
New Delhi, India
Indian Phosphate shares made an impressive debut on the NSE SME, listing at ₹188.10 per share, reflecting a 90% premium over the IPO issue price of ₹99 per share. The stellar listing was driven by strong demand in the initial public offering (IPO), which aligned with market expectations.
IPO Performance and Listing Highlights:
The Indian Phosphate IPO saw heavy demand, leading to a listing that met the grey market premium (GMP) prediction of ₹125 per share. However, due to NSE’s 90% price control cap on SME IPO listings, the shares began trading at a 90% premium. The IPO was open for bidding from August 26 to August 29, with allotment finalized on August 30, and shares listed on September 3.
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The IPO, priced between ₹94 and ₹99 per share, raised ₹67.36 crore at the upper end of the price band. The company intends to use the proceeds to set up a new manufacturing facility, meet working capital requirements, and for general corporate purposes.
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Strong Subscription Details:
Indian Phosphate’s IPO was oversubscribed by 267.89 times, with the retail category receiving 243.02 times subscription, the Qualified Institutional Buyers (QIB) category seeing 181.58 times, and the Non-Institutional Investors (NII) portion being booked 441.01 times. Beeline Capital Advisors Pvt Ltd acted as the book-running lead manager, while Bigshare Services Pvt Ltd served as the IPO registrar.
Company Overview and Future Plans:
Established in 1998, Indian Phosphate is a manufacturer of Linear Alkyl Benzene Sulfonic Acid (LABSA), a widely used anionic surfactant in detergents and cleaning products. The company also produces Single Super Phosphate (SSP) and Granules Single Super Phosphate (GSSP) in both powder and granule forms.
The proceeds from the IPO will be allocated to set up a new manufacturing facility at SIPCOT Industrial Park, Tamil Nadu, for the production of Sulphuric Acid, LABSA, and Magnesium Sulphate. Additionally, the funds will support working capital needs and general corporate activities.
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