Balaji Phosphates IPO sees 58% subscription on day 2

Balaji Phosphates IPO

The initial public offering of Balaji Phosphates recorded a 58 percent subscription till the second day of bidding, i.e. March 3. The issue will close on March 4.

Investors have bid for 38.38 lakh shares, compared to the offer size of 65.86 lakh shares via 820 applications, the subscription data published on the NSE showed.

In the previous session, i.e. first day of bidding, it was subscribed 17 percent.

The phosphate fertilisers manufacturer targets to raise Rs 50.11 crore through maiden public issue of 71.58 lakh shares. The IPO consists of fresh issue of 59.4 lakh shares and an offer-for-sale of 12.18 lakh shares by promoters.

Of which, it has already mobilised Rs 4 crore via anchor book by allotting 5.72 lakh shares to institutional investors at the upper end of price of Rs 66-70 per share.

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These fresh issue funds will be utilised for capital expenditure, working capital requirements, and general corporate purposes.

Madhya Pradesh-based Balaji Phosphates manufactures single super phosphate (SSP) in powder and granulated forms, NPK granulated and mixed fertilisers and zinc sulphate, under the brand Ratnam and BPPL.

Arihant Capital Markets is acting as the sole merchant banker to the issue.