Introduction Indian Phosphate Limited, a key player in the production of chemicals and fertilizers, has launched its Initial Public Offering (IPO). The company specializes in manufacturing Linear Alkyl Benzene Sulfonic Acid (LABSA 90%), an anionic surfactant widely used in detergents and cleaning products. This IPO presents an opportunity for investors to participate in a company with a robust market presence and expansion plans.
IPO Details
- IPO Dates: The IPO opened on August 26, 2024, and will close on August 29, 2024.
- Price Band: ₹94 to ₹99 per share.
- Lot Size: The minimum investment requires 1,200 shares, amounting to ₹1,18,800.
- Issue Size: The IPO aims to raise ₹67.36 crore through the issuance of 68,04,000 shares.
- Listing Date: The shares are expected to be listed on the NSE SME platform on September 3, 2024.
Purpose of the IPO The funds raised from this IPO will be utilized for:
- Setting up a new manufacturing facility in Tamil Nadu for the production of Sulphuric Acid, LABSA 90%, and Magnesium Sulphate.
- Meeting working capital requirements.
- General corporate purposes.
Subscription Status As of August 28, 2024, the IPO has been significantly oversubscribed:
- Qualified Institutional Buyers (QIB): 8.90 times
- Non-Institutional Investors (NII): 61.71 times
- Retail Investors: 131.58 times This high subscription rate indicates strong investor interest in the company.
Indian Phosphate Limited’s IPO offers a promising investment opportunity, backed by strong subscription rates and clear objectives for fund utilization. Investors should consider this IPO as part of a diversified portfolio, particularly if they are interested in the chemical and fertilizer industry. The company’s expansion plans and robust market demand for its products make it a compelling option in the current IPO landscape.
