Shree Tirupati Balajee Agro Trading IPO announces price band at ₹78-83 apiece

Shree Tirupati Balajee Agro Trading IPO price band: The Shree Tirupati Balajee Agro Trading Company Limited IPO price band has been fixed in the range of ₹78 to ₹83 per equity share of the face value of ₹10. The Shree Tirupati Balajee IPO date of subscription is scheduled for Thursday, September 5, and will close on Monday, September 9. The allocation to anchor investors for the Shree Tirupati Balajee IPO is scheduled to take place on Wednesday,September 4.

The floor price is 7.8 times and the cap price is 8.3 times of the face value of the equity shares. The upper end of the price band is 14.46 times as compared to the average industry peer group PE ratio of 30.74 times. The Shree Tirupati Balajee IPO lot size is 180 equity shares and in multiples of 180 equity shares thereafter.

Shree Tirupati Balajee Agro Trading IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Shree Tirupati Balajee Agro Trading IPO basis of allotment of shares will be finalised on Tuesday, September 10, and the company will initiate refunds on Wednesday, September 11, while the shares will be credited to the demat account of allottees on the same day following refund. Shree Tirupati Balajee share price is likely to be listed on BSE and NSE on Thursday, September 12.

The firm manufactures and sells Flexible Intermediate Bulk Containers (FIBCs), often known as huge flexible bags, as well as other industrial packaging materials such tapes, woven sacks, and woven fabric and thin fabric for both the domestic and international markets in India. By providing their FIBC products for transportation and packaging needs, the company offers customized products and meets the bulk packaging needs of its clients from a variety of industries, including chemicals, agrochemicals, food mining, waste disposal, agriculture, lubricants, and edible oil.

The company's services have been in operation for over 20 years, and they run five manufacturing units. The company conducts its business through its subsidiaries, namely Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL).

The company's listed peers are Commercial Syn Bags Ltd (with a P/E of 37.13), Emmbi Industries Ltd (with a P/E of 22.07), and Rishi Techtex Ltd (with a P/E of 33.01).

Between March 31, 2024, and March 31, 2023, Shree Tirupati Balajee Agro Trading Company Limited's profit after tax (PAT) climbed by 74% and its revenue by 16%.

Shree Tirupati Balajee Agro Trading IPO details

Shree Tirupati Balajee IPO, which is worth ₹170 crore, comprises a fresh issue of 1,47,50,000 equity shares and an offer-for-sale (OFS) of 56,90,000 equity shares by the promoter. Binod Kumar Agarwal is the company's promoter.

The company plans to use the net proceeds of the new offering to fund the additional working capital needs, general corporate purposes, and the repayment and/or prepayment, in full or in part, of some of the outstanding borrowings obtained by their company. They also plan to invest in their subsidiaries for these purposes.

The Shree Tirupati Balajee IPO's book running lead managers are PNB Investment Services Ltd and Unistone Capital Pvt Ltd, while the registrar is Link Intime India Private Ltd.

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