The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading will open for subscription on September 5. The issue closes on September 9. Through the public offer, the company plans to raise nearly Rs 170 crore. Here are 10 things to know about the Shree Tirupati Balajee Agro Trading IPO before subscribing to the issue.
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1) What is the business overview of Shree Tirupati Balajee Agro Trading?Shree Tirupati Balajee is engaged in the business of manufacturing and selling flexible intermediate bulk containers (FIBCs) i.e. large flexible bags and other industrial packaging products such as woven sacks, woven fabric, and narrow fabric tapes in the Indian domestic market and overseas.
2) What is the industry overview of Shree Tirupati Balajee Agro Trading?The FIBC market in India has grown by almost 38% in the last 10 years. The installed capacity of the FIBC Industry grew by around 3.3% year-on-year in 2022. It reached around 205.5 million units by the end of 2023. The production of the FIBC industry declined by around 3.3% year-on-year in 2022 but increased by 8% year-on-year in 2023.
3) What is the current GMP of Shree Tirupati Balajee Agro Trading?According to market analysts, the current GMP of Shree Tirupati Balajee Agro Trading is Rs 21 in the unlisted market, indicating a premium of 25% to the issue price.
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4) What is the size of Shree Tirupati Balajee Agro Trading IPO?The IPO includes a fresh issue of up to 1.47 crore shares and an offer for sale (OFS) of up to 56.9 lakh shares by Binod Kumar Agarwal.
5) What is the price band for Shree Tirupati Balajee Agro Trading IPO?The company has fixed a price band of Rs 78-83 for the public offer, where investors can bid for 180 shares in one lot.
6) What is the structure of Shree Tirupati Balajee Agro Trading IPO?About 50% in the public offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
7) How is the financial performance of Shree Tirupati Balajee Agro Trading?
The company’s consolidated revenue from operations increased 13% to Rs 540 crore for FY24, primarily due to an increase in revenues from the domestic sale of products. Profit after tax rose 74% to Rs 36 in the same period.
8) What are the objects of Shree Tirupati Balajee Agro Trading IPO?
The proceeds from the fresh issue will be used for repayment of debt, investment in the subsidiaries HPPL, STBFL, and JPPL for repaying borrowings, incremental working capital requirements, funding working capital requirements and general corporate purposes.
9) Who are the book-running lead managers for Shree Tirupati Balajee Agro Trading IPO?PNB Investment Services, and Unistone Capital are the book-running lead managers, while Link Intime India is the registrar to the offer.
10) When is the share allotment and listing date of Shree Tirupati Balajee Agro Trading IPO?
The share allotment for the IPO will likely be finalised on September 10 and the company is anticipated to list on stock exchanges on September 12.
