Shree Tirupati Balajee Agro Trading Company is going to be the second initial share sale from the mainboard segment in September, after Gala Precision Engineering' IPO. Here are 10 key things to know before subscribing the issue:
1) IPO Date
The public issue will open for subscription on September 5 and the last day for bidding will be September 9. The anchor book will be launched for a day on September 4.
2) Price Band
The Madhya Pradesh-based company has fixed price band for its public issue at Rs 78-83 per share.
3) IPO Size
Shree Tirupati Balajee Agro targets to mobilise Rs 169.65 crore through its maiden share sale of 2.04 crore equity shares at the upper price band.
The IPO comprises a fresh issue of 1.47 crore equity shares worth Rs 122.42 crore by the company, and an offer-for-sale of 56.9 lakh equity shares worth Rs 47.23 crore by promoter Binod Kumar Agarwal.
4) Shareholding
According to the Red Herring Prospectus filed with the SEBI, the company has 51 shareholders with Binod Kumar Agarwal being a promoter hold 88.38 percent shares. The remaining 11.62 percent stake is held by public shareholders.
The flexible intermediate bulk containers maker will spend Rs 52.27 crore out of the net fresh issue proceeds for repaying its debt. Further, Rs 24.24 crore will be utilised for working capital requirements, and the remaining fresh issue money for general corporate purposes.
It had a total debt of Rs 245.33 crore on its books on a consolidated basis as of May 2024.
The offer-for-sale money will go to Binod Kumar Agarwal, the selling shareholder.
6) IPO Lot Size
Investors can bid for a minimum of 180 equity shares and in multiples of 180 shares thereafter. The minimum investment by retail investors would be Rs 14,940 per lot (180 shares), while Rs 1,94,220 will be their maximum investment in Shree Tirupati Balajee IPO (13 lots - 2,340 shares) as they can invest up to Rs 2 lakh in IPO.
The company has reserved half of its public issue size for qualified institutional buyers (QIB), 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
With five manufacturing units, Shree Tirupati Balajee Agro Trading Company manufactures flexible intermediate bulk containers (FIBCs) i.e. large flexible bags and other industrial packaging products. Its products are used by several industries such as chemicals, agrochemicals, food mining, waste disposal, agriculture, lubricants and edible oil.
It operates business through subsidiaries Honourable Packaging (HPPL), Shree Tirupati Balajee FIBC (STBFL), and Jagannath Plastics (JPPL).
The FIBC segment accounted more than 51 percent of its revenue in the fiscal 2024, woven fabrics & narrow fabric business 21.3 percent, and little more than 4 percent business come from woven sacks and tape divisions. Other products including liner, container liner, thread, multi-filament yarn, and filler cord etc contributed 18.5 percent to revenue.
Shree Tirupati Balajee Agro recorded profit at Rs 36.1 crore for the year ended March 2024, increasing significantly by 74.1 percent compared to previous fiscal, driven by healthy operating performance and higher other income. Other expenses were also lowered to Rs 70.34 crore, from Rs 85.3 crore during the same period.
Revenue in the fiscal 2024 grew by 13.5 percent to Rs 539.7 crore compared to previous year, while EBITDA (earnings before interest, tax, depreciation and amortisation) jumped by 29 percent on-year to Rs 61.9 crore with margin rising by 137 bps to 11.47 percent for the year ended March 2024.
It compares with listed peers like Commercial Syn Bags, Emmbi Industries, and Rishi Techtex.
9) Allotment and Listing Dates
The basis of allotment of IPO shares will be finalised by the company on September 10. Participants to be investing in the IPO can check the allotment status on that day.
Eligible investors will get the company's IPO shares in their demat accounts by September 11, while these shares will be traded on the BSE and NSE effective September 12.
PNB Investment Services, and Unistone Capital are acting as the merchant bankers to the issue, while Link Intime India is the registrar to the offer.
10) Shree Tirupati Balajee Agro IPO GMP
Shree Tirupati Balajee IPO shares traded at around 10 percent premium over the upper price band in the grey market, the market observers said. The grey market is an unofficial market for trading in the IPO shares till their listing on the bourses.
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