The highest demand was driven by retail investors, who subscribed 4.5 times, followed by qualified institutional buyers (QIBs), who subscribed 3.5 times. Meanwhile, non-institutional investors (NIIS) had bid for 46.13 lakh shares out of the 30.66 lakh reserved for them, registering the issue 1.5 times.
Meanwhile, the current grey market premium (GMP) for Tirupati Balajee Agro Trading is Rs 17, down from Rs 21 on Wednesday and representing a 20.5% premium in the unlisted market.
The issue, which is a combination of a fresh sale of 1.47 crore shares worth Rs 122 crore and an offer for sale (OFS) of up to 56.9 lakh shares, closes on September 9. About 50% of the public offer is reserved for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.
The proceeds from the fresh issue will be used for repayment of debt, investment in subsidiaries HPPL, STBFL and JPPL, repayment of borrowings, financing of working capital requirements and for general corporate purposes.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 in subsequent multiples.
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Shree Tirupati Balajee Agro Trading IPO Review
Analysts advised investors to carefully assess the company’s debt-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, it is essential to carefully assess the debt and cash flow risks,” said Investmart’s Swastika.
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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