The shares missed estimates on the grey market, where they were trading at a 33% premium. The grey market is an unofficial ecosystem where shares begin trading well before the subscription offer opens and continue trading until the listing day.
Before the IPO opening, the company raised ₹50.9 crore from six institutional investors including Investors NAV Capital Emerging Star Fund, Chanakaya Opportunities Fund I and Next Orbit Growth Fund III through the anchor portfolio.
The IPO was open for subscription from September 5 to September 9. Through the public offer, the company raised around ₹170 crore.
Shree Tirupati Balajee sold its shares in a fixed price range of ₹78-83 apiece, with 180 shares in one lot.
The offer included a fresh issue of ₹122.42 crore and an offer for sale (OFS) of shares worth ₹47.23 crore.
The funds raised from the fresh issue will be used for repayment of debt, working capital requirements and general corporate purposes, while OFS funds will be received by promoter Binod Kumar Agarwal.
Company Description
The company was originally incorporated as ‘Shree Tirupati Balajee Agro Trading Company Private Limited’, at Pithampur, Dhar, Madhya Pradesh, as a Private Limited Company.
They are 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 Fabrics, Tapes in the domestic market of India and abroad.
For the year ended March 2024, the company posted a profit of Rs 36 crore, up significantly by 74% over the previous year, driven by strong operating performance and higher incremental revenues. Incremental expenses also declined to Rs 70 crore, compared to Rs 85 crore in the same period.
The company’s revenue in FY24 rose 13.5% to ₹540 crore, compared to the previous year, while EBITDA (earnings before interest, tax, depreciation and amortisation) increased 29% year-on-year to ₹62 crore with margin increasing 137 basis points to 11.47% for the year ended March 2024.
It is compared to listed peers such as Commercial Syn Bags, Emmbi Industries and Rishi Techtex.
Shree Tirupati Balajee had a total debt of ₹245.33 crore on its books on a consolidated basis as of May 2024.
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