Shree Tirupati Balajee Acquires 73,000 Shares in Shree Tirupati Balajee FIBC

Team Finance Saathi

20/Nov/2024

What’s covered under the Article:

Shree Tirupati Balajee Agro Trading acquires 73,000 shares of subsidiary, Shree Tirupati Balajee FIBC.
The acquisition is completed for ₹5.84 crore, raising the holding to 0.72%.
A related party transaction at arm’s length, expanding its footprint in the FIBC and packaging industry.

On November 19, 2024, Shree Tirupati Balajee Agro Trading Company Limited successfully acquired 73,000 equity shares of its subsidiary, Shree Tirupati Balajee FIBC Limited. The acquisition aligns with the company’s ongoing efforts to consolidate its position within the FIBC (Flexible Intermediate Bulk Container) and packaging sector.

Acquisition Details

The acquisition was completed for a total consideration of ₹5.84 crores (INR 5,84,15,330), acquiring 0.72% of the total shareholding in Shree Tirupati Balajee FIBC Limited.
The acquisition was conducted on an arm’s length basis, as Shree Tirupati Balajee Agro Trading is both the promoter and holding company of the target entity.
The cash consideration ensures full control over the 73,000 equity shares acquired in the subsidiary.

Financials and Industry Impact

Shree Tirupati Balajee FIBC Limited operates in the FIBC and packaging industry, dealing in products such as bulk bags, woven sacks, poly tarpaulin, and box bags. The target company has consistently reported solid financials:

FY 2023-24 turnover: ₹16,110.81 Lakhs
FY 2022-23 turnover: ₹17,624.21 Lakhs
FY 2021-22 turnover: ₹19,776.37 Lakhs

Despite a slight decline in turnover, the acquisition enables Shree Tirupati Balajee Agro Trading to enhance its influence in the industry, contributing to strategic growth in a crucial market.

Regulatory Compliance and Transaction Details

The acquisition was disclosed to SEBI under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, adhering to the latest circulars.
No government or regulatory approvals were needed for the transaction, which was completed without any issues.

Future Prospects

This acquisition strengthens Shree Tirupati Balajee Agro Trading’s holding in the subsidiary, positioning the company for further expansion in the FIBC and packaging sectors. This move also secures the company’s interest in Shree Tirupati Balajee FIBC Limited, known for its expertise in bulk container products and packaging solutions.

The company aims to continue its strategic growth through acquisitions and investment in the industry, ensuring that it remains competitive in the market.

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