Shree Tirupati Balajee Agro Trading Company refiles draft papers with higher IPO size

Shree Tirupati Balajee Agro Trading Company refiles IPO papers

Shree Tirupati Balajee Agro Trading Company has filed the draft red herring prospectus with the market regulator Sebi nearly three months after it had filed the papers for the first time for an initial share sale.

The public issue will comprise 2.04 crore shares with 1.47 crore fresh shares and an offer-for-sale (OFS) of 56.9 lakh shares by promoter Binod Kumar Agarwal, as per the March 20 draft IPO papers.

The Madhya Pradesh-based company had on December 28 last year filed the preliminary papers for an IPO of 1.67 crore equity shares and called it off later.

Promoter Agarwal holds 88.38 percent in the bulk packaging solutions provider and the remaining shares are owned by public shareholders such as Sachin Mohanlal Kakrecha, and Ample Vyapaar.

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Shree Tirupati Balajee Agro Trading Company manufactures flexible intermediate bulk containers (FIBCs) i.e. large flexible bags and other industrial packaging products (such as woven sacks, woven fabric and narrow fabric).

The company will utilise Rs 57.3 crore out of the net fresh issue proceeds for repaying debts, Rs 24.24 crore for working capital requirements, and the remaining amount for general corporate purposes. As per the previous prospectus, it was supposed to use Rs 61.89 crore for repaying debts.

On the financials front, the company has recorded a consolidated net profit of Rs 20.7 crore for the year ended March FY23, clocking a sharp rise of 51.4 percent over the previous year on the back of healthy operating numbers. Revenue from operations during the same period jumped 7 percent to Rs 475.4 crore.

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Its EBITDA (earnings before interest, tax, depreciation and amortisation) surged 55.5 percent on-year to Rs 48 crore with margin expansion of 314 bps to 10.1 percent for FY23. Net profit for six months period ended September FY24 was at Rs 20.25 crore on revenue of Rs 200.8 crore.

PNB Investment Services, and Unistone Capital are the book running lead managers to the issue, while Link Intime India is the registrar.