Shree Tirupati Balajee Agro IPO subscribed 69 times on Day 3 so far; HNI portion booked 160 times

The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading Company continued to attract a strong robust from the investors during the third and final of the bidding process. The issue was subscribed nearly 6.5 times on day one and ended day two with more than 18 times bids.
 

The Shree Tirupati Balajee Agro Trading Company is selling its shares in the price band of Rs 78-83 apiece. Investors can apply for a minimum of 180 shares and its multiples thereafter. It is looking to raise Rs 169.65 crore via IPO, which includes a fresh share sale of Rs 122.43 crore, and an offer-for-sale (OFS) of up to 56.90 lakh equity shares.
 

According to the data, the investors made bids for 99,20,56,140 equity shares, or 69.34 times, compared to the 1,43,08,000 equity shares offered for the subscription by 2.30 pm on Monday, September 09. The three-day bidding for the issue, which opened on Thursday, September 05, concludes today.
 

The allocation for non-institutional investors (NIIs) was subscribed 158.59 times, while the portion reserved for retail investors saw a subscription of 55.65 times. However, the quota set aside for qualified institutional bidders (QIBs) quota was subscribed 26.34 times as of the same time.
 

Incorporated in October 2001, Shree Tirupati Balajee Agro Trading Company manufactures and sells Flexible Intermediate Bulk Containers (FIBCs) including large flexible bags, and other industrial packaging products such as woven sacks, woven fabric, narrow fabric, and tapes in the Indian domestic market and overseas.
 

The grey market premium of Shree Tirupati Balajee Agro Trading Company has remained stable amid the rising volatility in the broader markets. Last heard, the company was commanding a premium of Rs 38-40 per share in the unofficial market, suggesting a listing pop of over 48 per cent for the investors. However, the premium in the grey market stood around Rs 35 on day two.
 

Brokerages are mostly positive on the issue suggesting investors to subscribe to it for a long term citing its strong market share, diverse product portfolio, quality and efficient product and rising demand of its solutions. On the other hand, concentration in a single region, tepid financial, use of plastic in the products and negative cash flows are the key concerns of the business.
 

STBATCL caters to various industries both in India and internationally. The company's success is not reliant on any single sector, as it serves a diverse range of markets. STBATCL has expanded its domestic presence and experienced growth in sales, which has positively impacted both its revenue and profitability, said Choice Broking.
 

"STBATCL is seeking an EV/Sales ratio of 1.5 times, which is significantly premium to the peer average. We believe all the positives seemed to be priced in the demanded valuation. Its performance is closely tied to the growth of its end industries; any negative impact on these sectors could affect the company’s business," it added with a 'subscribe with caution' tag.
 

Shree Tirupati Balajee Agro Trading Company reported a net profit of Rs 36.07 crore with a revenue of Rs 552.82 crore for the financial year ended on March 31, 2024. The company reported a net profit of Rs 20.72 crore with a revenue of Rs 478.14 crore for the fiscal year 2022-23.
 

Shree Tirupati Balajee Agro Trading raised Rs 50.89 crore from anchor investors as it allocated 61,32,000 shares at Rs 83 apiece. It has reserved 50 per cent of its net offer for the qualified institutional bidders (QIBs), while 15 per cent of the offering is allocated towards the non-institutional investors (NIIs and Remaining 35 per cent shares will be allocated to the retail investors.
 

STBATCL has been in business for over 20 years and run five manufacturing units. It also exports various types of bags, including technical bags, container liners, food-grade bags, platen bags, and builder bags. They have been recognized as a Three Star Export House by the Department of Commerce under the Foreign Trade Policy of 2023, said Ventura Securities with a 'subscribe' tag.
 

Unistone Capital and PNB Investment Services are the book running lead managers of the Shree Tirupati Balajee IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with Thursday, September 12 as the tentative date of listing.