Shree Tirupati Balajee Agro Trading Company Limited is a prominent player in the Flexible Intermediate Bulk Container (FIBC) sector. Established as one of the strongest manufacturers and suppliers of FIBC in India, the company is also rapidly growing as an exporter, catering to a diverse global clientele. Known for its world-class products, Shree Tirupati Balajee is dedicated to meeting the bulk packaging needs of various industries with customized solutions.

The upcoming IPO of Shree Tirupati Balajee is a Book Built Issue amounting to ₹169.64 Crores. This includes a Fresh Issue of 14.75 lakh shares, raising ₹122.42 Crores, and an Offer for Sale of 5.69 lakh shares, totaling ₹47.22 Crores. The subscription period for the IPO is from September 05 to September 09, 2024, with shares listed on both BSE and NSE. The allotment is expected to be finalized around Wednesday, September 11, 2024, and the shares are anticipated to list on Thursday, September 12, 2024.

The share price band for this IPO is set between ₹78 and ₹83 per equity share. Retail investors must invest a minimum of ₹14,940, while High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 14 lots (2,520 shares), amounting to ₹209,160. The book-running lead managers for this IPO are PNB Investment Services Limited and Unistone Capital Private Limited, with Link Intime India Private Limited serving as the registrar.

Shree Tirupati Balajee is managed by an experienced professional team led by Mr. Binod Kumar Agarwal, the Promoter and Managing Director. With over 35 years of experience as a qualified Chemical Engineer, Mr. Agarwal plays a crucial role in guiding the company's strategic direction.

Financial Performance

The company's financial performance showcases a robust growth trajectory. Revenue increased from ₹45,378.77 Million in FY22 to ₹55,282.11 Million in FY24. Similarly, EBITDA grew from ₹4,051.35 Million in FY22 to ₹7,507.04 Million in FY24, indicating improved operational efficiency. The Profit After Tax (PAT) also saw a rise from ₹1,365.90 Million in FY22 to ₹3,607.27 Million in FY24, reflecting strong profitability.

For the IPO, Shree Tirupati Balajee is offering shares with a pre-issue EPS of ₹5.74 and a post-issue EPS of ₹4.42. The pre-issue P/E ratio is 14.48x, and the post-issue P/E ratio is 18.77x, compared to the Industry P/E ratio of 30.74x. The company's Return on Capital Employed (ROCE) for FY24 is 16.29%, and the Return on Equity (ROE) is 20.84%, suggesting a favorable valuation for the IPO.

Objectives and Investment Potential

The funds raised from the Shree Tirupati Balajee IPO will be allocated towards:

₹3,145.36 Lakhs for the repayment and/or prepayment of outstanding borrowings.

₹2,082.14 Lakhs for investment in subsidiaries HPPL, STBFL, and JPPL to repay their borrowings.

₹1,350.00 Lakhs to meet incremental working capital requirements.

₹1,074.00 Lakhs for investment in subsidiaries for funding working capital needs.

General Corporate Purposes.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Shree Tirupati Balajee IPO is expected to be between ₹30 and ₹35, indicating potential listing gains of 35% to 40%. However, GMP is based on informal trading and should be used for informational purposes only.

Allotment Status

Investors can check the Shree Tirupati Balajee IPO allotment status on September 11, 2024. To verify:

Visit the IPO allotment status page.

Select Shree Tirupati Balajee Agro Trading Company Limited IPO from the dropdown menu.

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

Submit the details to check your allotment status.

This allows investors to quickly determine their allotment status and make informed decisions regarding their investments.

Conclusion

Shree Tirupati Balajee Agro Trading Company Limited offers a promising investment opportunity due to its strong market position, impressive financial growth, and reasonable IPO valuation. The company’s focus on FIBC manufacturing and its robust financial metrics make it an attractive choice for both short-term listing gains and long-term investments.

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