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Shree Tirupati Balajee Agro Trading IPO: Key Points to Know Before You Invest

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:

  1. 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.
  2. 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.
  3. Allocation: 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs).
  4. 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.
  5. 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.
  6. Revenue: The company has significant export revenue, which makes up over 60% of its total revenue. It exports to more than 38 countries.
  7. Manufacturing Units: The company operates five units in central India, which helps with efficient distribution and cost-effective operations.
  8. Promoter’s Stake: Binod Kumar Agarwal, the promoter, holds nearly 90% of the company’s shares.
  9. Competition: The company competes with large and small firms in the packaging industry, including Kanpur Plastipack Ltd. and Jumbo Bag Ltd.
  10. 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.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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