The Shree Tirupati Balajee Agro Trading IPO is set to raise ₹169.65 crore and is the second mainboard IPO in September. Here are 10 important things to know before considering this IPO:
- IPO Structure: The IPO includes 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 company’s promoter, Binod Kumar Agarwal, is selling part of his stake.
- Investment Details: Retail investors must bid for a minimum of 180 shares (1 lot) and can bid for up to 13 lots. The minimum bid amount is ₹14,940, and the maximum is ₹1,94,220.
- Allocation: 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs).
- Company Overview: Shree Tirupati Balajee Agro manufactures and sells flexible packaging products, including large bags and woven sacks. These products are used in various industries such as chemicals, food, and agriculture.
- IPO Goals: The company plans to use the funds to repay some debts, boost working capital, and cover general corporate expenses. They aim to use up to ₹57 crore for debt repayment.
- Revenue: The company has significant export revenue, which makes up over 60% of its total revenue. It exports to more than 38 countries.
- Manufacturing Units: The company operates five units in central India, which helps with efficient distribution and cost-effective operations.
- Promoter’s Stake: Binod Kumar Agarwal, the promoter, holds nearly 90% of the company’s shares.
- Competition: The company competes with large and small firms in the packaging industry, including Kanpur Plastipack Ltd. and Jumbo Bag Ltd.
- Financials: For the six months ending September 30, 2023, the company earned ₹200.77 crore. In the fiscal year 2023, its revenue increased by 7.04% to ₹475.43 crore, and profit grew by 51.36% to ₹20.72 crore.
Risks: Potential risks include regulatory changes affecting plastic products, fluctuations in raw material costs, and possible anti-dumping duties.
Important Dates: IPO allotment is expected on September 10, 2024, with shares listing on the NSE and BSE on September 12, 2024.
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