Market Debut: Shree Tirupati Balajee lists at ₹90 on NSE, a premium of 8.4% from IPO price

Shree Tirupati Balajee Agro Trading IPO listing: Shares of Shree Tirupati Balajee made a decent debut on the bourses today. It listed at ₹90 on NSE, a premium of 8.4 percent from its IPO price of ₹83. Meanwhile, on BSE, it debut at ₹92.9, a premium of 11.93 percent from issue price.

The initial public offering (IPO), valued at ₹169.65 crore, was open for subscription from September 5, 2024, to September 9, 2024, with a price set at ₹78-83 per share.

During the 3 days of bidding the IPO received overwhelming subscription and was bid 124.74 times overall. The issue received bids for 178.48 crore equity shares against 1.43 crore shares on offer. The retail category saw a subscription of 73.22 times, while NII quota was subscribed 210.12 times. The QIB portion also witnessed strong 150.87 times bids.

About the IPO

Shree Tirupati Balajee's IPO featured a fresh issue of 1.48 crore shares, amounting to ₹122.43 crore, alongside an offer for sale (OFS) of 0.57 crore shares, aggregating to ₹47.23 crore. Retail investors were required to purchase a minimum lot size of 180 shares, with the smallest investment starting at ₹14,940.

The company intends to use the net proceeds from the fresh issue to partially or fully repay certain outstanding debts, invest in its subsidiaries HPPL, STBFL, and JPPL for debt repayment and working capital, and meet its own incremental working capital needs and general corporate purposes.

PNB Investment Services Ltd and Unistone Capital Pvt Ltd are acting as the book-running lead managers for the IPO, ensuring smooth execution and investor participation. Link Intime India Private Ltd has been appointed as the registrar for the issue, overseeing the allocation and distribution process.

About the Company

Shree Tirupati Balajee Agro Trading Company Limited, founded in October 2001, specializes in the production and sale of Flexible Intermediate Bulk Containers (FIBCs) along with various industrial packaging solutions like woven sacks, fabrics, narrow fabric, and tapes. The company serves a wide range of industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil, both in domestic and international markets.

The company operates through its subsidiaries—Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL). For the fiscal year ending March 31, 2024, it achieved a 16 percent increase in revenue and a significant 74 percent growth in profit after tax (PAT) compared to the previous year.