Shree Tirupati Balajee Agro Trading IPO Opens Tomorrow: Check Price Band, GMP & 10 Key Details Before You Invest

September 5, 2024

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The IPO for Shree Tirupati Balajee Agro Trading is opening for subscription on September 5 and will close on September 9. The company aims to raise about ₹170 crore through this public offering. Below are 10 key points you should know before investing:

What does Shree Tirupati Balajee Agro Trading do?

The company makes and sells flexible intermediate bulk containers (FIBCs), which are large flexible bags used for industrial packaging. They also make products like woven sacks, woven fabric, and narrow fabric tapes, selling them in both the Indian and overseas markets.

Industry Overview

The FIBC market in India has seen growth of about 38% over the past 10 years. In 2022, the industry’s capacity grew by 3.3% year-on-year, reaching 205.5 million units by the end of 2023. Although production declined by 3.3% in 2022, it rose by 8% in 2023.

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What is the current GMP (Grey Market Premium)?

According to analysts, the current GMP for Shree Tirupati Balajee Agro Trading is ₹21 in the unlisted market, indicating a 25% premium over the issue price.

IPO Size

The IPO includes a fresh issue of up to 1.47 crore shares and an offer for sale (OFS) of 56.9 lakh shares by Binod Kumar Agarwal.

Price Band

The price band for the IPO is set between ₹78-83 per share, and investors can bid for 180 shares per lot.

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IPO Structure

The public offer is divided into:

50% for qualified institutional buyers (QIBs)
35% for retail investors
15% for non-institutional investors

Financial Performance

For FY24, the company’s revenue grew by 13% to ₹540 crore, mostly from domestic sales. Its profit after tax increased by 74% to ₹36 crore in the same period.

IPO Proceeds

The funds from the IPO will be used to:

Repay debt
Invest in subsidiaries HPPL, STBFL, and JPPL
Meet working capital requirements
General corporate purposes

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Lead Managers

The IPO’s book-running lead managers are PNB Investment Services and Unistone Capital, and the registrar is Link Intime India.

Share Allotment and Listing Date

The share allotment is expected to be finalised by September 10, and the company is likely to list on the stock exchanges on September 12.

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