Shree Tirupati Balajee IPO Surges in Grey Market: GMP Jumps to ₹36 Amid Strong Investor Interest – Should You Apply Before Monday?

The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading Company Limited opened for bidding in the Indian market on Thursday, September 5, 2024. The IPO has seen strong interest from investors during the first two days of bidding. Due to this positive response, the grey market has also shown a bullish trend for the IPO. As per market experts, shares of Shree Tirupati Balajee are currently trading at a premium of ₹36 in the grey market.

GMP Today

Today, the grey market premium (GMP) for Shree Tirupati Balajee IPO is ₹36, an increase of ₹10 from Friday’s GMP of ₹26. Experts believe that the rise in GMP reflects positive sentiment despite a dip in the broader market, with the Nifty 50 index slipping below 25,000. They expect the grey market premium to further improve if the stock market trends reverse in the coming days.

IPO Subscription Status

After the first two days of bidding, the IPO has been subscribed 18.17 times overall. The retail investor portion was subscribed 21.42 times, while the non-institutional investor (NII) segment saw 28.56 times subscription. Qualified institutional buyers (QIBs) subscribed 4.69 times.

Should You Subscribe to Shree Tirupati Balajee IPO?

StoxBox, a leading financial firm, has given a “subscribe” rating to the IPO. They believe the issue is reasonably priced, with a price-to-earnings (P/E) ratio of 14.5x based on the company’s FY24 earnings. Considering the company’s growth strategy, focus on expanding both in domestic and global markets, and the promising future of the industry, they recommend a medium to long-term investment.

Master Capital Services also suggests investors buy into the IPO, especially given the rising demand in sectors like chemicals, construction, and food agriculture. The FIBC (Flexible Intermediate Bulk Containers) industry, where the company operates, has seen steady growth, and Shree Tirupati Balajee plans to expand its capacity and develop new products to take advantage of this trend. The company is well-positioned to grow, and the firm believes it’s a good investment for the medium to long term.

IPO Key Details

The bidding for this public issue closes on Monday, September 9, 2024. Under the ‘T+3’ listing rule, the IPO share allotment is expected to be finalized by Tuesday, September 10, 2024. The company’s shares are likely to be listed on the stock exchange on Thursday, September 12, 2024.