Unlisted shares of Indian Phosphate Ltd are trading Rs 135 higher in the grey market, signalling a whopping 136.36 per cent listing gain from the public issue.
Indian Phosphate IPO: The initial public offering (IPO) of Indian Phosphate Ltd will be closed on Thursday, August 29. The price band of the SME IPO was fixed at Rs 94-99 per share. Till 11:29 am on the final day of bidding on Thursday, the 67.36-crore IPO received a 91.32 times subscription, garnering bids for 41,11,50,000 shares as against 45,02,400 shares on offer.
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According to the latest data, the retail quota received a 145.18 times subscription, while the non-institutional investors category also got a 75.54 times subscription. The QIB category received an 8.90 times subscription on the first day of bidding.
The four-day Indian Phosphate IPO was opened for public subscription on August 26. Its price band has been fixed at Rs 94-Rs 99 apiece. The share allotment will likely be finalised on August 30, while its listing will take place on the NSE SME on September 3.
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Indian Phosphate IPO GMP Today
According to market observers, unlisted shares of Indian Phosphate Ltd are trading Rs 135 higher in the grey market than its issue price of Rs 99. The Rs 135 grey market premium or GMP means the grey market is expecting a whopping 136.36 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
Importantly, the NSE has capped the listing gains for SME IPOs at 90 per cent.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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Indian Phosphate IPO: More Details
The Indian Phosphate IPO is entirely a fresh issue of 68.04 lakh shares.
Indian Phosphate Limited, founded 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. The company also manufactures ‘Single Super Phosphate’ (SSP) and ‘Granules Single Super Phosphate’ (GSSP) which are manufactured and supplied in powder and granule form as per the norms of the Fertilizer Control Regulation of India and are fortified with Zinc and Boron.
Investors need to apply for a minimum of 1,200 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 1,18,000 [1,200 (lot size) x Rs 99 (upper price band)].
Beeline Capital Advisors Pvt Ltd is the book running lead manager of the Indian Phosphate IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Indian Phosphate IPO is Spread X Securities.
Indian Phosphate Limited’s revenue fell 7 per cent and its net profit dropped 27 per cent in the financial year 2023-24.
