Shree Tirupati Balajee Agro Trading Company Limited is a leading manufacturer and supplier of FIBC (Flexible Intermediate Bulk Containers), offering world-class bulk packaging solutions. As one of the fastest-growing exporters in the Indian market, Shree Tirupati Balajee stands at the forefront of the FIBC industry, catering to a wide range of global customers.

Shree Tirupati Balajee Agro Trading Company IPO Overview

The Initial Public Offering (IPO) of Shree Tirupati Balajee Agro Trading Company Limited is a Book Built Issue worth ₹169.64 crore, consisting of a Fresh Issue of ₹122.42 crore and an Offer for Sale (OFS) worth ₹47.22 crore. The subscription window opens on 05 September 2024 and closes on 09 September 2024. Investors can expect the allotment to be finalized on 11 September 2024, with the shares set to list on both BSE and NSE on 12 September 2024.

Price Band and Investment Details

The share price band has been set at ₹78 to ₹83 per equity share, and the minimum lot size is 180 shares. Retail investors will need to invest a minimum of ₹14,940, while HNIs (High-Net-Worth Individuals) must invest in at least 14 lots (2,520 shares), amounting to ₹209,160.

Financial Performance of Shree Tirupati Balajee

Shree Tirupati Balajee has demonstrated strong financial growth over recent years. The company’s revenue grew from ₹45,378.77 million in FY22 to ₹55,282.11 million in FY24, showing a steady increase. Similarly, EBITDA surged from ₹4,051.35 million in FY22 to ₹7,507.04 million in FY24, indicating efficient operational management. The company’s PAT rose from ₹1,365.90 million in FY22 to ₹3,607.27 million in FY24, reflecting robust profitability.

Valuation Metrics

For this IPO, Shree Tirupati Balajee Agro Trading Company has 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, 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%, highlighting strong returns and suggesting that the IPO is reasonably priced.

Objectives of the IPO

Proceeds from the IPO’s Fresh Issue will be utilized for the following objectives:

₹3,145.36 lakh for repayment or prepayment of outstanding borrowings.

₹2,082.14 lakh for investment in subsidiaries (HPPL, STBFL, and JPPL) for repayment of borrowings.

₹1,350.00 lakh for funding incremental working capital requirements.

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

Remaining proceeds will be allocated for general corporate purposes.

Grey Market Premium (GMP) and Expected Listing Gains

The Grey Market Premium (GMP) for the Shree Tirupati Balajee IPO is expected to be between ₹30 and ₹35, indicating the potential for listing gains of 35% to 40%. While the GMP reflects strong investor interest, it’s important to remember that the Grey Market is unregulated, and actual price discovery will occur upon listing on the stock exchange.

How to Check Shree Tirupati Balajee IPO Allotment Status

Investors can check their IPO allotment status after 11 September 2024 using the following steps:

Visit the IPO allotment status page on the registrar's website.

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 view your allotment status.

Following these steps will allow investors to quickly verify their share allocation.

Should You Invest in Shree Tirupati Balajee Agro Trading Company IPO?

With consistent revenue and profit growth, Shree Tirupati Balajee Agro Trading Company Limited presents a compelling investment opportunity. The company's competitive pricing, strong financial metrics, and potential for listing gains make this IPO attractive to both retail investors and HNIs. The company’s solid position as a market leader in the FIBC sector, coupled with its global reach, further strengthens its investment appeal.

Investors looking for both short-term listing gains and long-term growth potential should consider applying for this IPO. The company’s use of proceeds, aimed at reducing debt and supporting operational expansion, bodes well for its future growth prospects.

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