Shree Tirupati Balajee Agro Trading IPO: From financials to GMP, here are 10 things to know before subscribing

Shree Tirupati Balajee Agro Trading IPO: The Initial Public offering starts on 5 September 2024.

1.Shree Tirupati Balajee Agro Trading IPO key dates -

September 5, 2024, is when the subscription for the Shree Tirupati Balajee IPO opens, and it closes on September 9, 2024.

A minimum of 50% of the issuance is set aside for Qualified Institutional Buyers (QIBs), retail investors, and non-institutional investors (NIIs), with the remaining 35% going to retail investors.

On Tuesday, September 10, 2024, the allocation for the Shree Tirupati Balajee IPO is anticipated to be completed. The proposed listing date for the Shree Tirupati Balajee initial public offering (IPO) is Thursday, September 12, 2024, on the BSE and NSE.

2.Shree Tirupati Balajee Agro Trading IPO Subscription details

Shree Tirupati Balajee Agro price band had been fixed in the range of ₹78 to ₹83 per equity share of the face value of ₹10. 180 Shares is the minimum lot size required for an application. Retail investors are needed to invest a minimum of ₹14,940.

3.Shree Tirupati Balajee Agro Trading IPO registrars and Lead managers

The Shree Tirupati Balajee IPO's book running lead managers are Pnb Investment Services Ltd and Unistone Capital Pvt Ltd, while the registrar is Link Intime India Private Ltd.

4.Shree Tirupati Balajee Agro Trading IPO: Objectives of the Issue

The ₹169.65 crore Shree Tirupati Balajee IPO is a book-built offering. The issue consists of an offer to sell 0.57 crore shares, valued at ₹47.23 crores, and a new issuance of 1.48 crore shares, valued at ₹122.43 crores.

The following goals will be accomplished by the company using the net proceeds from the new issuance (gross proceeds less offer-related expenses):

-Repayment and/or prepayment, in full or in part, of some outstanding loans that the business and its subsidiaries, Jagannath Plastics Pvt Ltd (JPPL), Shree Tirupati Balajee FIBC Ltd (STBFL), and Honorable Packaging Private Limited (HPPL), took out.

- Financing the company's and its subsidiaries' increased working capital needs.

5.About Shree Tirupati Balajee Agro

Large, flexible bags known as Flexible Intermediate Bulk Containers, or FIBCs, are the specialty of Shree Tirupati Balajee Agro. It also produces tapes, woven bags, woven fabric, and narrow fabric, among other industrial packaging materials. These products are sold by the company both domestically in India and internationally.

6.Shree Tirupati Balajee Agro- Financials

Shree Tirupati Balajee Agro Trading Company Limited's profit after tax (PAT) climbed by 74% and its revenue rose by 16% between 31 March, 2024, and 31 March, 2023.

7. Shree Tirupati Balajee Agro competitors

The business faces rivalry from both bigger, more established companies and smaller, local businesses. It competes with a number of private companies, such as Kanpur Plastipack Ltd, Rishi Techtex Ltd, Jumbo Bag Ltd, EMMBI Industries Ltd, and Commercial Syn Bags Ltd, among listed companies in India of similar size and product range.

8. Shree Tirupati Balajee Agro Promoters

The promoter of the company is Binod Kumar Agarwal who currently holds 88.38% stakes in the company, however will see share Holding Post Issue at 65.42%

9. Shree Tirupati Balajee Agro Promoters Key risks

Polypropylene granules, low-density polyethylene (LDPE), and high-density polyethylene (HDPE) in different grades are the company's main raw materials. Changes in the price of crude oil can have an impact on polymer costs because these materials account for a significant amount of its expenses.

Furthermore, the company's operations may be negatively impacted by risks related to fluctuations in foreign exchange rates during the importation of polymers, as well as possible price hikes for raw materials, shortages in supply, and cost overruns.

10. Shree Tirupati Balajee Agro Promoters GMP

Grey Market premium for Shree Tirupati Balajee Agro share stood at +30. In other words the Shree Tirupati Balajee Agro share were trading at ₹30 more over the issue price as per investorgain.com.

Hence market is anticipating the Shree Tirupati Balajee Agro share to list at ₹104 , 25.3% or ₹30 more than the upper band of the issue price at ₹83

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.