Shares of Shree Tirupati Balajee Agro Trading Company Ltd made a decent start on its stock market debut on September 12 after listing at Rs 92.90, a premium of 12 percent over the issue price of Rs 83 per share on the Bombay Stock Exchange (BSE).
The listing gains, however, miss grey market estimates where shares were trading at a premium of almost 33 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
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Over three days, the Rs 169.65-crore public offer, a mix of a fresh issue and an offer for sale, was subscribed a staggering 124.74 times overall, with retail investors subscribing 73.22 times, Qualified Institutional Buyers (QIBs) subscribing 150.87 times, and Non-Institutional Investors (NIIs) subscribing 210.12 times.
Balajee garnered Rs 50.9 crore from six institutional investors via anchor book on September 4. Investors NAV Capital Emerging Star Fund, Chanakya Opportunities Fund I, and Next Orbit Growth Fund III invested Rs 10 crore each in the Madhya Pradesh-based company.
Established in 2001, the company manufactures and sells Flexible Intermediate Bulk Containers (FIBCs), i.e., large flexible bags, and other industrial packaging products such as woven sacks, woven fabric, narrow fabric, and tapes in the Indian domestic market and overseas. The company offers customized products and caters to the bulk packaging needs of clients from various industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil.
The company plans to use the net proceeds from the Fresh Issue for several purposes, including the repayment or prepayment, in part or full, of certain outstanding borrowings. Additionally, funds will be invested in its subsidiaries—HPPL, STBFL, and JPPL—to repay or prepay borrowings and meet their working capital requirements. The company also aims to fund its own incremental working capital needs and allocate a portion of the proceeds for general corporate purposes.
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