Shree Tirupati Balajee IPO: The initial public offer (IPO) of Shree Tirupati Balajee Agro Trading Company Limited hit the Indian primary market on 5th September 2024, i.e. on Thursday last week. According to the Shree Tirupati Balajee IPO subscription status, the public issue received a strong response from investors in the first two days of bidding. Meanwhile, after a strong reaction by investors, the grey market has gone bullish on the book build issue. According to stock market observers, shares of the company are available at a premium of ₹36 in the grey market today.
As mentioned above, Shree Tirupati Balajee IPO GMP (grey market premium) today is ₹36, ₹10 higher than Friday's Shree Tirupati Balajee IPO GMP of ₹26. They said the rise in the grey market sentiment is positive as the secondary market bias has gone negative as the Nifty 50 index has slipped below the 25,000 mark. They said that the Indian stock market has been under selling pressure for the last three straight sessions. They said the grey market may further improve once there is a trend reversal on Dalal Street.
After two days of bidding, the public issue was subscribed 18.17 times, the retail portion of the book build issue was booked 21.42 times, the NII segment was filled 28.56 times, whereas the QIB portion was subscribed 4.69 times.
Giving a 'subscribe' tag to the public issue, StoxBox says, "The current issue is priced at a P/E ratio of 14.5x on upper price band based on FY24 earnings, aligning well with its peers. Given the industry's promising growth trajectory and the company's strategic focus on capacity optimization, new product development, and expansion in domestic and global presence, we recommend a "SUBSCRIBE" rating for the issue with a medium to long-term investment perspective."
Assigning a 'buy' tag to the public offer, Master Capital Services said, “Growing demand over the years, especially from the chemicals, construction, and food agriculture sectors, has helped the FIBC sector reach healthy capacity utilization levels, resulting in players going for capacity expansion. Further, the FIBC industry grew at a CAGR of 1.8% during 2020-2023, owing to continuous innovations and process improvement across the value chain and steady traction due to continuous improvement in product quality. The company plans to take advantage of this situation by focusing on its core competencies and maximizing its capacity. The company also intends to develop a new product line following the market trends, using its vast product portfolio, and enhancing its technological capabilities to create a Global and Domestic presence. Investors can invest in the IPO for the medium to long term.”
Bidding for the public issue ends on September 9th, 2024, which is Monday next week. In the wake of the 'T+3' listing rule, Shree Tirupati Balajee's IPO allotment date is most likely September 10th, 2024, and Shree Tirupati Balajee's IPO listing date is September 12th, 2024, which is Thursday next week.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
