Madhya Pradesh-based Shree Tirupati Balajee Agro Trading Company is planning to raise funds via initial public offering. It has filed draft papers with the capital markets regulator SEBI on December 28, as per the papers published on January 2.
The IPO comprises a fresh issue of 1,30,65,000 equity shares by the company, and an offer-for-sale (OFS) of 36,45,000 equity shares by promoter Binod Kumar Agarwal.
It is is holding company of Shree Tirupati Balajee FIBC which is listed on the NSE Emerge, and also holding company of Jagannath Plastics, and Honourable Packaging.
Promoter Binod Kumar Agarwal holds 88.38 percent shareholding in the company, while the remaining 11.6 percent shares are held by the public including Jitendra Rasiklal Sang, and Ample Vyapaar.
With manufacturing units in Pithampur, Madhya Pradesh, the flexible intermediate bulk container jumbo bags maker will utilise net fresh issue money for repaying debts availed by itself and subsidiaries (Honourable Packaging, Shree Tirupati Balajee FIBC, and Jagannath Plastics), amounting to Rs 61.89 crore.
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Further, Rs 24.24 crore will be used for working capital requirements, and the remaining money will be set aside for general corporate purposes.
The total borrowings on its books were Rs 224.2 crore on a consolidated basis, as of September 2023.
The flexible intermediate bulk containers (FIBC) produced by the company are designed to handle loads ranging from 500 kg to 2,500 kg. These bags are generally used in various industries including construction, agriculture, industrial products, chemicals, fertilizers, cement, mining, animal feed, and processed food.
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Shree Tirupati Balajee Agro Trading Company, which also exports its FIBC and woven products to over 38 countries including Australia, New Zealand, USA, Canada, Chile, Sweden, France, UK, Germany, Spain, Malaysia, and Singapore, reported net profit at Rs 20.7 crore for the financial year ended March FY23, increasing sharply from Rs 13.7 crore in previous year.
During the same period, the revenue from operations increased from Rs 444.2 crore, to Rs 475.4 crore, while the net profit for the six months period ended September FY24 stood at Rs 20.25 crore on revenue of Rs 200.76 crore.
PNB Investment Services and Unistone Capital are the book running lead managers to the public issue.
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