The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading Company Limited opened for subscription on Thursday looking to raise Rs 169.65 crore.
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Shree Tirupati Balajee Agro Trading Company Limited, established in October 2001, specialises in manufacturing and selling Flexible Intermediate Bulk Containers (FIBCs), or large flexible bags, along with other industrial packaging products like woven sacks, woven fabric, narrow fabric, and tapes.
Shree Tirupati Balajee’s IPO is a book-built issue comprising a fresh issue of 1.48 crore shares totalling Rs 122.43 crore and an offer for sale of 57 lakh shares amounting to Rs 47.23 crore.
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The price band is set at Rs 78 to Rs 83 per share, with a minimum application lot of 180 shares, requiring a retail investment of Rs 14,940. For sNII, the minimum lot size is 14 lots (2,520 shares) amounting to Rs 209,160, while for bNII, it is 67 lots (12,060 shares) amounting to Rs 1,000,980.
Should you subscribe?
An IPO report from Master Capital Services Limited said that growing demand over the years, especially from the chemicals, construction, and food agriculture sectors has helped the FIBC sector reach healthy capacity utilisation levels, resulting in players going for capacity expansion.
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Further, the FIBC industry grew at a CAGR of 1.8% during 2020-2023, owing to continuous innovations and process improvement across the value chain and steady traction due to continuous improvement in product quality.
“The company plans on taking advantage of this situation by focusing on its core competencies along with optimum utilisation of its capacity. The company also intends to develop a new product line following the trends of the market and using its vast product portfolio along with enhancing its technological capabilities to create a Global and Domestic presence. Investors looking to invest can invest in the IPO for the medium to long term,” said Master Capital Services Limited.
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Latest GMP for Shree Tirupati Balajee IPO
The Grey Market Premium (GMP) for Shree Tirupati Balajee IPO is Rs 30 as of September 4, 2024. With a price band of Rs 83, the estimated listing price is around Rs 113, indicating a potential gain of 36.14% per share.
The allotment is expected to be finalised on September 10, 2024, with the listing on BSE and NSE tentatively scheduled for September 12, 2024.
