Shree Tirupati Balajee Agro Trading Company Limited (STB) is a leading manufacturer and supplier of Flexible Intermediate Bulk Containers (FIBC) in India, recognized for its robust presence in both domestic and international markets. The company is preparing for a significant IPO with a total issue size of ₹169.64 Crores.

IPO Structure and Subscription Details: The Shree Tirupati Balajee IPO consists of a Fresh Issue of 14.75 Lakh Shares valued at ₹122.42 Crores and an Offer for Sale of 5.69 Lakh Shares totaling ₹47.22 Crores. The subscription window opens on September 05, 2024, and closes on September 09, 2024. The allotment is anticipated by September 11, 2024, with shares expected to list on BSE and NSE around September 12, 2024.

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

Grey Market Premium: The Grey Market Premium (GMP) for the Shree Tirupati Balajee IPO is currently estimated between ₹30 to ₹35. While GMP can offer insights into potential listing gains, it is based on informal trading and does not guarantee the final listing price. GMP is shared for educational purposes and reflects demand and supply dynamics in the unorganized market.

Live Subscription Status: As of 06:15 PM on September 09, 2024, the Shree Tirupati Balajee IPO has been subscribed an impressive 124.74 times on its last day of the subscription period. For real-time updates on the subscription status, visit the BSE website.

Allotment Information: The allotment of Shree Tirupati Balajee IPO shares is set to be finalized on September 11, 2024. Investors can check their allotment status on the Registrar’s website by entering their application number, PAN, or DP Client ID.

Objectives of the IPO: The proceeds from the Shree Tirupati Balajee IPO will be allocated towards:

₹31.45 Crores for repayment and/or prepayment of outstanding borrowings.

₹20.82 Crores for investment in subsidiaries (HPPL, STBFL, JPPL) for similar purposes.

₹13.50 Crores for funding incremental working capital requirements.

₹10.74 Crores for investment in subsidiaries for working capital needs.

General corporate purposes.

Company Overview and Financial Performance: Shree Tirupati Balajee is renowned for its superior FIBC products, catering to a wide range of global clients. The company's management team, led by Mr. Binod Kumar Agarwal, a Chemical Engineer with over 35 years of experience, drives its growth.

Financially, the company has shown consistent improvement. Revenue increased from ₹45,378.77 Millions in FY22 to ₹55,282.11 Millions in FY24. EBITDA rose from ₹4,051.35 Millions to ₹7,507.04 Millions over the same period, and PAT surged from ₹1,365.90 Millions to ₹3,607.27 Millions. These figures demonstrate solid financial health and growth potential.

For the Shree Tirupati Balajee IPO, the pre-issue EPS stands at ₹5.74 and the post-issue EPS at ₹4.42. The pre-issue P/E ratio is 14.48x, while the post-issue P/E ratio is 18.77x, compared to the industry average of 30.74x. The company's ROCE and ROE are 16.29% and 20.84% for FY24, respectively, indicating a fair pricing of the IPO.

IPO Review: Considering Shree Tirupati Balajee’s financial performance and valuation, the IPO is expected to offer 35% to 40% listing gains. This makes it an attractive option for investors looking for both short-term gains and long-term growth.

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