Indian Phosphate shares debut with 90% premium over IPO price on NSE SME

The proceeds from the fresh issue will be utilized to set up a new manufacturing facility at SIPCOT Industrial Park

Shares of Indian Phosphate Limited made a lightning start on its stock market debut on September 3 after listing at Rs 188, commanding a premium of 90 percent over the price of Rs 99 on the NSE SME platform.

Prior to listing, shares of the company were trading with over 100 percent premium in the grey market. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

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The Rs 67.36-crore public offer, purely a fresh issue of 68 lakh shares, received robust investor interest after the IPO was subscribed over 266 times. Out of that, non-institutional investors led the surge, buying 440 times their allotted quota. Retail investors and qualified institutional buyers (QIBs) followed thereafter buying 240 and 181 times, respectively.

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Established in 1998, it produces Linear Alkyl Benzene Sulfonic Acid (LABSA), an anionic surfactant widely used in washing powders, soaps, toilet cleaners, and liquid detergents. The company also manufactures Single Super Phosphate (SSP) and Granules Single Super Phosphate (GSSP), available in powder and granule form.

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The proceeds from the fresh issue will be utilized 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 be used to meet working capital requirements and for general corporate purposes.

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