Tirupati Balajee Agro Trading IPO Oversubscribed 6.36x on Day 1! Retail Investors Lead as GMP Jumps — Check Price Band, Registrar, and More

The IPO of Tirupati Balajee Agro Trading was a big hit on its first day of bidding, as it was oversubscribed 6.36 times by 5 PM on Thursday. Retail investors showed the most interest, subscribing 7.92 times. Non-institutional investors (NIIs) followed, making bids for 1.61 crore shares, which is 5.25 times the 30.66 lakh shares reserved for them. Qualified institutional buyers (QIBs) also participated, subscribing 4.46 times.

In the grey market, Tirupati Balajee Agro Trading’s shares saw a jump in premium. The GMP (grey market premium) increased from Rs 21 on Wednesday to Rs 35 on Thursday, indicating a 42% premium in the unlisted market.

The IPO consists of a fresh issue of 1.47 crore shares worth Rs 122 crore and an offer for sale (OFS) of up to 56.9 lakh shares. It closes on September 9. The allocation is divided as 50% for QIBs, 35% for retail investors, and 15% for non-institutional investors.

Funds raised from the IPO will be used for debt repayment, investment in the company’s subsidiaries (HPPL, STBFL, and JPPL), working capital needs, and general corporate purposes.

Tirupati Balajee Agro Trading IPO Details

• Price Band: Rs 78-83 per share
• Lot Size: 180 shares per lot
• Issue Closes: September 9
• Use of Proceeds: Debt repayment, investments, and working capital.

Analyst Review

Experts suggest that investors should carefully consider the company’s debt situation before investing. Swastika from Investmart commented that long-term investors might find the IPO appealing due to the company’s market position and plans to reduce debt. However, she advised a detailed review of the company’s debt and cash flow risks.

About the Company

Tirupati Balajee Agro Trading is involved in producing and selling industrial packaging products such as flexible intermediate bulk containers (FIBCs), woven sacks, woven fabric, and narrow fabric tapes. It has a leading position in the FIBC sector, both in India and overseas.

The company’s revenue grew by 13% in FY24, reaching Rs 540 crore, with profit after tax increasing by 74% to Rs 36 crore, mainly due to higher domestic sales.

Lead Managers and Listing

PNB Investment Services and Unistone Capital are the lead managers for the IPO, and Link Intime India is the registrar. The company’s shares will be listed on both the BSE and NSE.