Shree Tirupati Balajee Agro Trading shares are set to debut on the Indian stock exchanges on Thursday, September 12. Ahead of the listing, the company’s shares are commanding a healthy grey market premium (GMP) of ₹40, according to investorgain.com.
Considering the IPO price band's upper end and the grey market's current premium, the estimated listing price of Shree Tirupati Balajee Agro was indicated at ₹123 apiece, 48 per cent higher than the IPO price of ₹83. The grey market premium reflects investors' willingness to pay more than the issue price. As the Shree Tirupati Balajee Agro is a mainboard IPO, there is no listing cap of 90 per cent.
The mainboard IPO, valued at ₹169.65 crore, was open for subscription from September 5 to September 9, 2024, with a price range between ₹78 and ₹83.
The issue is a combination of a fresh issue of 1.48 crore shares aggregating to ₹122.43 crore and an offer for sale of 0.57 crore shares aggregating to ₹47.23 crore. The IPO attracted substantial interest, achieving an overall subscription rate of 124.74 times.
Non-institutional investors were particularly active, subscribing 210 times, while QIBs also demonstrated strong interest, with a subscription rate of 150.57 times. Retail investors have shown notable interest as the portion booked at 73.22 times, according to Chittorgarh.com.
The company intends to use the net proceeds from the fresh issue, which are the gross proceeds minus offer-related expenses towards repaying either partially or in full, certain outstanding borrowings taken by the company and its subsidiaries, including Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Ltd (STBFL), and Jagannath Plastics Pvt Ltd (JPPL).
Further, the company plans to allocate the funds to meet the incremental working capital needs of both the company and its subsidiaries, and the remaining proceeds will be used for general corporate purposes.
Shree Tirupati Balajee Agro specialises in manufacturing and selling Flexible Intermediate Bulk Containers (FIBCs), which are large flexible bags. It also manufactures other industrial packaging products, such as woven sacks, woven fabric, narrow fabric, and tapes. The company sells these products in both the Indian domestic market and overseas.
The company offers customized bulk packaging solutions for its clients across various industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil. These FIBC products are specifically designed for transportation and packaging needs and can handle loads ranging from 500 kg to 2,500 kg.
With over 20 years of experience, Shree Tirupati Balajee Agro operates five manufacturing units. The company’s business is managed through its subsidiaries: Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL).
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