Shree Tirupati Balajee Agro Trading Company Limited (STB) is a leading manufacturer and supplier of Flexible Intermediate Bulk Containers (FIBC) in India. The company has established itself as a prominent exporter in the global market, offering customized bulk packaging solutions for various industries.

IPO Details and Subscription Period

The Shree Tirupati Balajee Agro Trading IPO is a Book Built Issue amounting to ₹169.64 Crores, consisting of a Fresh Issue of 14.75 Lakh Shares worth ₹122.42 Crores and an Offer for Sale of 5.69 Lakh Shares totaling ₹47.22 Crores. The subscription period for the IPO opens on September 05, 2024, and closes on September 09, 2024. The shares are expected to be listed on BSE and NSE around September 12, 2024, with the allotment process being finalized on September 11, 2024.

Share Price Band and Lot Size

The share price band for STB IPO is set between ₹78 and ₹83 per share. The minimum lot size is 180 shares, requiring a retail investment of ₹14,940. High-Net-Worth Individuals (HNIs) must invest in a minimum of 14 lots (2,520 shares), amounting to ₹209,160.

Grey Market Premium

The Grey Market Premium (GMP) for Shree Tirupati Balajee IPO is estimated to be in the range of ₹30 to ₹35. While GMP provides an estimate of potential listing gains, it is important to note that it does not guarantee the final listing price. GMP is influenced by market demand and supply in an unregulated manner.

Subscription Status

As of September 09, 2024, at 06:15 PM, the Shree Tirupati Balajee Agro Trading IPO has been subscribed 124.74 times on its last day of the subscription period. For the latest updates on the subscription status, investors can check the BSE website.

Allotment Status

The allotment status for Shree Tirupati Balajee IPO will be available on September 11, 2024. Investors can check their allotment status by visiting the registrar’s website and entering their application number, PAN, or DP Client ID.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated as follows:

₹31,45.36 Lakhs for repayment and/or prepayment of certain outstanding borrowings.

₹20,82.14 Lakhs for investment in subsidiaries HPPL, STBFL, and JPPL for repayment and/or prepayment of borrowings.

₹13,50.00 Lakhs for funding incremental working capital requirements.

₹10,74.00 Lakhs for investment in subsidiaries HPPL, STBFL, and JPPL for working capital requirements.

General corporate purposes.

Financial Performance and Valuation

Shree Tirupati Balajee has demonstrated strong financial performance with revenue increasing from ₹45,378.77 Millions in FY22 to ₹55,282.11 Millions in FY24. EBITDA and PAT have also shown substantial growth. The IPO is priced 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, while the post-issue P/E ratio is 18.77x, compared to an industry P/E ratio of 30.74x. The company’s ROCE for FY24 is 16.29% and ROE for FY24 is 20.84%, indicating strong financial metrics.

Investment Recommendation

The Shree Tirupati Balajee Agro Trading IPO offers potential listing gains estimated at 35% - 40%. Given the company’s solid financial performance and reasonable valuation, we recommend considering the IPO for both short-term gains and long-term investment.

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