Shree Tirupati Balajee Agro Trading Company Limited (STB) is a leading manufacturer and supplier of Flexible Intermediate Bulk Containers (FIBC) in India, as well as one of the fastest-growing exporters in the sector. The company has established itself as the premier destination for world-class FIBC products and solutions, catering to a wide range of bulk packaging requirements for discerning global clients.

The company has launched its Initial Public Offering (IPO), which comprises a Book Built Issue amounting to ₹169.64 crores. The IPO consists of a Fresh Issue of 14.75 lakh shares worth ₹122.42 crores and an Offer for Sale (OFS) of 5.69 lakh shares totaling ₹47.22 crores. Investors can subscribe to the Shree Tirupati Balajee IPO from September 5, 2024, to September 9, 2024.

The price band for the IPO is set between ₹78 and ₹83 per share, with a minimum lot size of 180 shares. Retail investors are required to invest at least ₹14,940, while High-Net-Worth Individuals (HNIs) must purchase 14 lots (2,520 shares) amounting to ₹209,160.

The book-running lead managers for the IPO are PNB Investment Services Limited and Unistone Capital Private Limited, with Link Intime India Private Limited acting as the registrar for the issue. The shares will be listed on both the BSE and NSE, with a tentative listing date of Thursday, September 12, 2024.

Live Subscription Status and Allotment

As of 06:15 PM on September 9, 2024, the Shree Tirupati Balajee Agro Trading IPO live subscription status shows the IPO was subscribed 124.74 times on the final day of its subscription period. This strong subscription reflects the high level of interest from investors across retail, HNI, and institutional categories.

The IPO allotment date is expected to be Wednesday, September 11, 2024. Investors can check their allotment status through the registrar’s website by following these steps:

Go to the IPO allotment status page.

Select Shree Tirupati Balajee Agro Trading Company Limited IPO from the dropdown list of available IPOs.

Enter the application number, PAN, or DP Client ID.

Submit the details to view the allotment status.

By checking the allotment status, investors will be able to confirm if they have been allotted shares and can proceed accordingly with their investment decisions.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Shree Tirupati Balajee Agro Trading IPO is expected to range between ₹30 and ₹35 per share, indicating potential listing gains of 35% to 40%. It is important to note that GMP is unofficial and speculative, with no formal trading taking place prior to the IPO listing. While GMP offers insights into investor sentiment, the final listing price is determined by market dynamics and company performance upon listing on the stock exchanges.

Financial Performance

Shree Tirupati Balajee Agro Trading has demonstrated steady financial growth over the past few fiscal years, reflecting the company’s strong position in the FIBC market. The company's revenue increased from ₹45,378.77 million in FY22 to ₹47,813.65 million in FY23, and saw a significant jump to ₹55,282.11 million in FY24, showcasing the company’s increasing market demand and growth in export opportunities.

Similarly, the company's EBITDA improved from ₹4,051.35 million in FY22 to ₹5,074.43 million in FY23, and further surged to ₹7,507.04 million in FY24, signaling robust operational efficiency and higher profit margins.

Profit After Tax (PAT) also grew substantially, rising from ₹1,365.90 million in FY22 to ₹2,071.80 million in FY23, and more than doubling to ₹3,607.27 million in FY24, demonstrating a healthy trajectory of profitability.

For the Shree Tirupati Balajee Agro Trading IPO, the company is issuing shares at a pre-issue EPS of ₹5.74 and a post-issue EPS of ₹4.42. The pre-issue P/E ratio stands at 14.48x, while the post-issue P/E ratio is 18.77x, which is significantly lower than the industry average P/E ratio of 30.74x. This suggests that the IPO is attractively priced, offering value for both retail and institutional investors.

In addition, the company’s Return on Capital Employed (ROCE) for FY24 stands at 16.29%, while the Return on Equity (ROE) is 20.84%, which are solid metrics indicating the company’s ability to generate strong returns on its capital base and shareholders' equity.

Objectives of the IPO

The funds raised from the Fresh Issue of the Shree Tirupati Balajee Agro Trading IPO will be utilized for the following key purposes:

₹3,145.36 lakhs will be allocated for the repayment or prepayment of certain outstanding borrowings, helping to improve the company’s financial leverage.

₹2,082.14 lakhs will be invested in subsidiaries HPPL, STBFL, and JPPL for the repayment or prepayment of their borrowings.

₹1,350.00 lakhs will be used to fund the incremental working capital requirements of the company.

₹1,074.00 lakhs will be invested in the subsidiaries for funding their working capital requirements.

The remainder of the proceeds will be used for general corporate purposes, giving the company flexibility to pursue future growth opportunities.

Shree Tirupati Balajee Agro Trading IPO Review and Recommendation

Shree Tirupati Balajee Agro Trading Company Limited is managed by a professional team, with Mr. Binod Kumar Agarwal as the Promoter and Managing Director. Mr. Agarwal, a qualified Chemical Engineer with over three and a half decades of experience, has been instrumental in positioning the company as one of the strongest manufacturers and suppliers of FIBC in India and a rapidly growing exporter globally.

The company’s financial performance, driven by rising revenues, EBITDA, and PAT, highlights its strong operational efficiency and market positioning. With the demand for bulk packaging solutions continuing to rise, Shree Tirupati Balajee Agro is well-positioned to capitalize on both domestic and international opportunities in the FIBC market.

For further updates on similar issues and investment opportunities, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for stock market trading insights and the Finance Saathi Telegram Channel for regular updates on share markets and IPOs.

Start your stock market journey by opening a free demat account with Choice Broking FinX.