Shree Tirupati Balajee Agro IPO: GMP Signals Strong Listing, Investors Eye Big Gains on Sept 12

Shree Tirupati Balajee Agro Trading’s shares will debut on the Indian stock exchanges on Thursday, September 12. Before the listing, the company’s shares are showing a strong grey market premium (GMP) of ₹40, according to investorgain.com.

Based on the upper price range of the IPO and the current GMP, the expected listing price of Shree Tirupati Balajee Agro shares is around ₹123 per share. This is 48% higher than the IPO price of ₹83. The grey market premium shows how much investors are willing to pay above the IPO price. As this is a mainboard IPO, there’s no limit on how much the shares can rise on listing day.

The IPO, valued at ₹169.65 crore, was open for subscription from September 05 to September 09, 2024, with a price range of ₹78 to ₹83 per share.

The issue included a fresh issue of 1.48 crore shares worth ₹122.43 crore and an offer for sale of 0.57 crore shares worth ₹47.23 crore. The IPO was in high demand, with an overall subscription rate of 124.74 times.

Non-institutional investors were especially active, subscribing 210 times the available shares, while Qualified Institutional Buyers (QIBs) also showed strong interest with a subscription rate of 150.57 times. Retail investors subscribed to their portion 73.22 times, as per data from Chittorgarh.

Use of IPO Funds

The company plans to use the funds from the fresh issue, after covering expenses, to pay off some of its outstanding loans. This includes loans for the company itself and its subsidiaries like Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Ltd (STBFL), and Jagannath Plastics Pvt Ltd (JPPL).

Additionally, the funds will be used to meet the company’s growing need for working capital and for general corporate purposes.

About Shree Tirupati Balajee Agro

Shree Tirupati Balajee Agro is a company that produces and sells Flexible Intermediate Bulk Containers (FIBCs), which are large, flexible packaging bags. They also make other industrial packaging products like woven sacks, fabrics, and tapes. The company sells its products both in India and internationally.

They provide customized packaging solutions for industries such as chemicals, agriculture, food, mining, waste disposal, lubricants, and edible oils. Their FIBCs can handle loads ranging from 500 kg to 2,500 kg.

With over 20 years of experience, the company runs five manufacturing units. Their business is managed through subsidiaries: Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL).