Shree Tirupati Balajee Agro IPO Opens Tomorrow: Key Dates & Must-Know Details Before You Invest

The Shree Tirupati Balajee Agro Trading IPO is set to begin on September 5, 2024, and will close on September 9, 2024. Here’s a breakdown of everything you need to know before subscribing:

1. Important Dates:
   • The IPO opens for subscription on September 5, 2024, and closes on September 9, 2024.
   • The allotment of shares is expected to happen on September 10, 2024.
   • The shares are likely to be listed on the BSE and NSE on September 12, 2024.
2. Subscription Details:
   • The price range for the IPO is set between ₹78 and ₹83 per share, with a face value of ₹10.
   • Investors need to apply for a minimum of 180 shares, which requires an investment of at least ₹14,940.
   • 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors.
3. Management and Registrars:
   • PNB Investment Services Ltd and Unistone Capital Pvt Ltd are managing the IPO, while Link Intime India Private Ltd is handling the registration.
4. Purpose of the IPO:
   • The company aims to raise ₹169.65 crore through this IPO.
   • The funds will be used for repaying loans, meeting increased working capital needs, and covering general corporate expenses.
5. Company Background:
   • Shree Tirupati Balajee Agro specializes in manufacturing Flexible Intermediate Bulk Containers (FIBCs), which are large, flexible bags used for industrial packaging.
   • The company also produces tapes, woven bags, woven fabric, and narrow fabric, catering to both domestic and international markets.
6. Financial Performance:
   • Between March 2023 and March 2024, the company’s revenue grew by 16%, while its profit after tax (PAT) increased by 74%.
7. Competitors:
   • The company faces competition from both large, established firms and smaller, local companies.
   • Key competitors include Kanpur Plastipack Ltd, Rishi Techtex Ltd, Jumbo Bag Ltd, EMMBI Industries Ltd, and Commercial Syn Bags Ltd.
8. Promoter Information:
   • Binod Kumar Agarwal, who currently holds an 88.38% stake in the company, will see his shareholding reduce to 65.42% post-IPO.
9. Key Risks:
   • The company’s primary raw materials are polypropylene granules, LDPE, and HDPE, which are linked to crude oil prices.
   • Any fluctuation in crude oil prices, foreign exchange rates, or supply shortages could negatively impact the company’s operations and profitability.
10. Grey Market Premium (GMP):
    • The grey market premium for Shree Tirupati Balajee Agro shares is currently ₹30.
    • This suggests that the shares could list at ₹104, which is about 25.3% higher than the upper price band of ₹83.

This IPO is generating interest in the market, with strong anticipation for a positive listing based on the current grey market activity. Investors should consider these factors before deciding whether to subscribe.