Shri Tirupati Balaji Agro Trading: Shri Tirupati Balaji Agro Trading Company Limited's initial public offering (IPO) hit the Indian primary market on Thursday this week. Public Issue 2024 will remain open for bidding till September 9 i.e. next Monday. Bulk container manufacturer Shree Tirupati Balaji's IPO price band per equity share is Rs. 78 to Rs. Determined as 83. This initial offer, fresh shares, through Offer for Sale (OFS) at Rs. The book build issue aims to raise Rs 169.65 crore. Ahead of the initial public offering on Thursday, September 5, anchor investors received Rs. 50.89 crore has been collected. Meanwhile, shares of Sri Tirupati Balaji Agro Trading Company Limited are trading at a significant premium in the gray market today, on the eve of the Shree Tirupati Balaji IPO subscription start date. Shares of Shree Tirupati Balaji Agro Trading Company Limited are trading at Rs. per equity share in the gray market today. 26 is available at a premium, say stock market observers.
Shri Tirupati Balaji IPO Subscription Status
By 12.03 pm on the second day, 10.57 times the public issue, 13.95 times the retail portion, 10.79 times the NII segment and 4.47 times the QIB portion of the initial offer were subscribed.
Important IPO details..
1. Shree Tirupati Balaji IPO GMP today in the gray market at Rs. Market observers are analyzing the company's shares at a premium of 26.
2. IPO Date: Public issue started on September 5, 2024, will remain open till September 9, 2024.
3. IPO Pricing: Container manufacturing firm Shree Tirupati Balaji has priced its IPO at Rs. 78 to Rs. Determined as 83.
4. Date of Allotment of IPO: Share allotment is possible till September 10, 2024.
5. IPO Registrar: Link In Time India Pvt Ltd has been appointed as the official registrar for the book build issue.
6. IPO size: The bulk container company through this initial offer raised Rs. 169.65 crore is targeted to be raised. In this Rs. 122.43 crore is targeted for issue of new shares, while the remaining Rs. 47.23 crores have been allotted to OFS route.
7. IPO Lot Size: Bidders can apply in lots. 180 shares of the company are placed in one lot.
8. IPO Lead Managers: PNB Investment Services Limited, Unistone Capital Pvt Ltd have been appointed as lead managers for the public issue.
9. IPO Listing Date: Public issue proposed for listing on BSE, NSE. The probable date of share listing is 12th September, 2024.
About Shri Tirupati Balaji IPO..
Will Sri Tirupati Balaji IPO Bring Profits to Investors? Or will it bring losses? Avinash Gorakshakkar, Head of Research, Profitmark Securities said, 'The issue price is a bit high, but the primary market is crowded. Secondary market is in uptrend. So, investors can apply for public issue for listing profit.
Giving a 'subscribe' tag to the medium and long-term sectors, Master Capital Services said, 'Growing demand over the years, particularly from the chemicals, construction and food agri sectors, has helped the FIBC sector reach healthy capacity utilization levels, resulting in capacity expansion by companies. Moreover, the FIBC industry is expected to grow at a CAGR of 1.8% during 2020-23. Producing across the value chain, due to constant traction due to continuous improvement in product quality. The company plans to take advantage of this situation to increase its efficiency by focusing on its core competencies. Following the market trends, the company intends to develop new product lines to leverage its vast production fort to create a global low country presence. Investors can invest in IPO from medium to long term.
Assigning a 'subscribe' tag to the public issue, Stokesx Research analyst Dakhar Mehrotra said, 'The FIBC market is poised for significant expansion due to rising demand across various sectors and the growing e-commerce industry. Since its introduction in India in the early 1990s, FIBCs have developed into a major export commodity, with Indian production now reaching around 65 countries. Strong domestic demand in industries such as chemicals, food products, construction materials and agriculture, manufacturing and favorable policies such as Make India to promote international trade have contributed to this growth. Sri Tirupati Balaji Agro Trading Company Limited has emerged as a leading FIBC and Industrial Packaging player with significant market demand and growing global presence.
Despite challenges such as regulatory changes affecting the use of plastics, fluctuating raw material supply, regional concentration in manufacturing, the company has demonstrated steady financial growth. In the financial year 2022 Rs. 4,442 million in FY 2024 to Rs. 5,397 million and earned a revenue of 10.2 percent. EBITA margins from 7 percent to 11 percent, PAT from Rs.137 million to Rs. increased to 361 million. Given the current P/E ratio of 14.5 times on the upper price band based on FY 2024 earnings, we recommend a 'Subscribe' rating for this issue with a medium to long-term investment outlook.' said the Stokes box expert.
