Shree Tirupati Balajee Agro Trading IPO Launch Dates Announced

Shree Tirupati Balajee Agro Trading has officially announced the launch dates for its Initial Public Offering (IPO). The subscription for the IPO will open on September 5, 2024, and will conclude on September 9, 2024.

According to company sources, 50% of the issuance is allocated for Qualified Institutional Buyers (QIBs), while retail investors and non-institutional investors (NIIs) will receive the remaining allocation. Notably, 35% of the total issuance is earmarked specifically for retail investors.

The allocation results for the Shree Tirupati Balajee IPO are expected to be finalized on September 10, 2024. Subsequently, the shares are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on September 12, 2024.

The price band for the IPO has been set between ₹78 and ₹83 per equity share, with a minimum lot size requirement of 180 shares. Retail investors will need to make a minimum investment of ₹14,940.

Pnb Investment Services Ltd and Unistone Capital Pvt Ltd are serving as the book running lead managers for the IPO, while Link Intime India Private Ltd is the registrar for the issue. The total size of the Shree Tirupati Balajee IPO is ₹169.65 crore, comprising an offer to sell 0.57 crore shares valued at ₹47.23 crores along with a new issuance of 1.48 crore shares valued at ₹122.43 crores.

Utilization of proceeds from the new issuance will be directed towards the repayment and/or prepayment of certain outstanding loans taken by the company and its subsidiaries, as well as for financing increased working capital needs.

Shree Tirupati Balajee Agro specializes in manufacturing Flexible Intermediate Bulk Containers (FIBCs) and various industrial packaging materials, including tapes, woven bags, and narrow fabric. The company distributes its products both in India and internationally.

As for financial performance, Shree Tirupati Balajee Agro reported a 74% increase in Profit After Tax (PAT) and a 16% rise in revenue from March 31, 2023, to March 31, 2024.

The company operates in a competitive landscape with established players such as Kanpur Plastipack Ltd, Rishi Techtex Ltd, Jumbo Bag Ltd, and others.

Binod Kumar Agarwal is the primary promoter of Shree Tirupati Balajee Agro, holding an 88.38% stake in the company, which is expected to reduce to 65.42% post-issue.

Key raw materials include polypropylene granules, low-density polyethylene (LDPE), and high-density polyethylene (HDPE), whose costs are susceptible to fluctuations in crude oil prices. The company also faces challenges related to foreign exchange fluctuations and potential raw material price increases.

Currently, the grey market premium for Shree Tirupati Balajee Agro shares stands at +30, indicating that shares are anticipated to trade at ₹104 upon listing, a 25.3% increase over the upper band of the issue price of ₹83.