Indian Phosphate Limited, established in 1998, produces Linear Alkyl Benzene Sulfonic Acid LABSA 90%, commonly known as LABSA, an anionic surfactant used in the formulation of all types of washing powders, cakes, toilet cleaners, and liquid detergents. They are also engaged in the manufacturing of fertilizers. Indian Phosphate IPO is for an aggregate amount of Rs 67.36 crores.

• Company is mainly engaged in the production of Linear Alkylbenzene Sulphonic Acid LABSA 90%, popularly known as LABSA,
• This is an anionic surfactant and it is used in the formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents.
• They are also engaged in the manufacturing of “Single Super Phosphate” (SSP) fertilizer and “Granules Single Super Phosphate” (GSSP) Fertilizer
• Company operates from its manufacturing facility located at Udaipur, Rajasthan which is in the close proximity of supply of both the raw materials (a) Sulphuric Acid 98% (b) Rock Phosphate used in manufacturing of products.0
• The other major raw material Linear Alkylbenzene (LAB) is sourced from IOCL, Vadodara, Nirma Ltd., Vadodara and Reliance Industries Ltd., Patalganga.
• Company furthermore also produces Zincated Single Super Phosphate – “Powder/Granules” and Zincated and boronated Single Super Phosphate – “Granules” by formulating zinc and boron into the granulator and powder hopper along with Single Super Phosphate powder in required proportion. The Department of Fertiliser and the Government of India encouraged the SSP sector to create value-added fortified SSP with zinc and boron content due to the deficiency of these elements in the soil.
• Promoters of Company are Mr. Ravindra Singh, Mrs Mamta Arora and Mr. Rushil Arora

Financials: Indian Phosphate IPO

Anchors

Indian Phosphate IPO: Salient Points

• Company is engaged in the business of fertiliser and chemical sector.
• Linear Alkyl Benzene Sulphonic Acid (LABSA) which is primarily used as raw materials for some of Fast-Moving Consumer Goods.
• Setting up Company is engaged in the business of fertiliser and chemical sector.a new facility at SIPCOT Industrial Park, Cuddalore , Tamil Nadu for manufacturing of LABSA 90%, Sulphuric Acid and Magnesium Sulphate from IPO proceeds.
• Has given Corporate Guarantee to the extent of Rs. 10500.00 Lakhs on behalf of one of the Group Companies i.e. Elysian Hotels Private Limited (“Borrower Company”) in favour of Canara Bank
• Significantly dependent on only single customer namely Hindustan Unilever Limited (HUL) for the revenues.

• IPhL has set up Solar Power plant for captive power requirement.
• They also have interest into mining of minerals as well as rock phosphate beneficiation. This business vertical is also poised for quantum leap through commissioning of its’ own recently acquired Mines in Madhya Pradesh.
• In their south based upcoming plant, production is likely to commence in 2025.
• c Since last 5 years focus is to produce fortified SSP with Zinc and Boron. As a result, they are currently generating more than 80% of SSP as fortified SSP.
• There was some downturn in revenues and profits in last year.
• .PE 2024: 18.4x
• I intend to apply in Indian Phosphate IPO subject to availability of funds. Company should do well with major client like HUL ,backward integration, new mining allocation and planned expansion.
• GMP as reported on social media has been Rs. 100 (110%)
• Beeline Capital Advisors Pvt Ltd is the Lead Manager to the issue. It has a fair to good record. Past issues handled by them include Positron Energy Limited, Ashapura Logistics Limited IPO, Sati Poly Plast Limited, V.L.Infraprojects Limited, Dindigul Farm Product Limited, United Cotfab Limited, Beacon Trusteeship Limited, Rulka Electricals Limited, Piotex Industries, Winsol Engineers, Emmforce Autotech Limited, Greenhitech Ventures Limited, TAC Infosec Limited IPO, KP Green Engineering Limited, Pratham EPC Projects, V R Infraspace, Rudra Gas Enterprise Limited, Fonebox Retail Limited, Konstelec Engineers, Australian Premium Solar, Indifra Limited, Benchmark Computer Solutions, Sheetal Universal Limited, Rajgor Castor Derivatives, Arvind and Company Shipping Agencies, Karnika Industries Limited, Hi-Green Carbon Limited, Kody Technolab Limited, Chavda Infra Limited, Vinsys IT Services Limited,Ahasolar Technologies, Pentagon Rubber, Remus Pharmaceuticals, Sotac Pharmaceuticals, RBM Infracon Limited, Transvoy Logistics, Dev Labtech, Viviana Power Tech, Vital Chemtech, Aristo Bio-Tech and Lifescience, Viaz Tyres, Vertexplus Technologies etc..
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.