Shree Tirupati Balajee IPO final day bidding: Should you apply?

By the final day of bidding, Shree Tirupati Balajee's initial public offering (IPO) witnessed overwhelming interest and robust subscriptions.

The IPO, valued at ₹169.65 crore, opened for bidding on September 5 and will close on September 6. The price band was set at ₹78-83 per share.

About the IPO

Shree Tirupati Balajee's IPO comprises a fresh issue of 1.48 crore shares aggregating ₹122.43 crore and an offer for sale of 0.57 crore shares aggregating ₹47.23 crore. The minimum lot size for an application was 180 shares, and the minimum investment required by retail investors was ₹14,940.

The IPO closed with overwhelming demand, with the issue subscribed 50.59 times till 1:30 pm on Day 3 of bidding.

The IPO received bids for 72.38 crore shares against the 1.43 crore shares on offer. Specifically, the subscription breakdown was notable across different segments: the retail investor segment saw a 45.53 times subscription, and Non-Institutional Investors booked 116.92 times. The Qualified Institutional buyers segment saw a bidding of 9.69 times.

The company will credit the equity shares on September 11 into the Demat accounts of investors who have received the allotment. Refunds for rejected applications will also be processed the same day. Shree Tirupati Balajee IPO is slated to list on BSE and NSE on Thursday, September 12, 2024.

The company plans to use the net proceeds from the fresh issue for several key purposes, including the partial or full repayment of certain outstanding borrowings, investments in its subsidiaries HPPL, STBFL, and JPPL for debt repayment, and funding their working capital needs. Additionally, the proceeds will be used to meet the company’s own incremental working capital requirements and for general corporate purposes.

PNB Investment Services Ltd and Unistone Capital Pvt Ltd are the book-running lead managers of the Shree Tirupati Balajee IPO. Link Intime India Private Ltd is the registrar for the issue.

About the Company

Shree Tirupati Balajee Agro Trading Company Limited, established in October 2001, specializes in manufacturing and selling Flexible Intermediate Bulk Containers (FIBCs) and other industrial packaging products, such as woven sacks, fabrics, narrow fabric, and tapes. The company caters to the bulk packaging needs of industries like chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil domestically and internationally.

Operating through subsidiaries such as Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL), the company reported 16 per cent revenue growth and a 74 per cent rise in profit after tax (PAT) for the fiscal year ending March 31, 2024, compared to the previous year.

Review

"The company is in the business of manufacturing and marketing of FIBCs and other industrial packaging products. It posted steady growth in its top and bottom lines for the last three fiscals. Based on FY24 earnings, the issue appears relatively fully priced. Well-informed investors may park funds for the medium to long term," Dilip Davda of Chittorgarh.com said.

Shree Tirupati Balajee IPO GMP today

The IPO's grey market premium (GMP) today is ₹60 per share, indicating an expected listing price of ₹143, a premium of 72.29 per cent from its issue price of ₹83. The GMP jumped from ₹40 on September 8.