Demand was driven by retail investors, whose category was subscribed 16 times, followed by non-institutional investors with 14 times. The portion reserved for institutional investors was subscribed 14.4 times.
Approximately 50% of the public offering is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.
The proceeds of the fresh issue will be used for repayment of debt, investment in subsidiaries HPPL, STBFL and JPPL, for repayment of borrowings, for meeting additional working capital requirements, for financing working capital requirements and for general corporate purposes.
Shree Tirupati Balajee GMP
In the grey market, the company’s shares are trading at a GMP of Rs 40, indicating a 49% upside potential.
Shree Tirupati Balajee Agro Trading IPO Price Band
The company has set a price range of Rs 78-83 for the public offer, where investors can bid for 180 shares in one lot and multiples thereafter.
Shree Tirupati Balajee Agro Trading IPO Review
Analysts advised investors to carefully assess the company’s debt-to-equity ratio and subscribe to the issue from a long-term perspective. “Given the company’s market leadership and debt reduction potential, long-term investors may consider subscribing to the IPO. However, careful assessment of debt and cash flow risks is essential,” Swastika Investmart said.
Other details
Shree Tirupati Balajee is engaged in the business of manufacturing and selling Flexible Intermediate Bulk Containers (FIBC) i.e. Flexible Big Bags and other industrial packaging products like Woven Sacks, Woven Fabrics and Narrow Fabric Tapes in the domestic market of India and abroad.
The company is a market leader in FIBC and industrial packaging and has a strong financial performance with consistent growth and improving margins.
Its consolidated operating income rose 13% to Rs 540 crore in fiscal 2024, mainly due to higher revenue from domestic product sales. Profit after tax rose 74% to Rs 36 crore in the same period.
PNB Investment Services and Unistone Capital are the lead managers of the issue, while Link Intime India is the registrar of the offer. The equity shares are proposed to be listed on the Boston Stock Exchange and the New York Stock Exchange.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of Economic Times)
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