Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Review –
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) is set to open from 5th Sept Aug 2024 to 9th Sept 2024. This article will analyze the financials , strengths and weaknesses of the Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO). Keep scrolling below to read more!
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Overview –
Established in October 2001, Shree Tirupati Balajee Agro Trading Company Limited manufactures and sells Flexible Intermediate Bulk Containers (FIBCs), i.e., 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 company offers customized products and caters to the bulk packaging needs of clients from various industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil.
The company operates through subsidiaries such as Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL).
The company operates five manufacturing units. Units I and II are certified with ISO 9001:2015 and ISO 14001:2018. Unit III is certified with ISO 9001:2015, ISO 45001:2018, ISO 14001:2015, ISO 14064-1:2018, and the SEDEX SMETA four-pillar. The company’s certifications cover the production of Flexible Intermediate Bulk Containers (FIBC), Woven Sacks, and Fabrics of PP (Polypropylene) and HDPE (High-Density Polyethylene).
As of July 2024, the company has 857 department employees.
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Synopsis-
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) is set to be open from 5th Sept 2024 to 9th Sept 2024, offering combination of fresh issue of 1.48 crore shares aggregating to Rs 122.43 crores and offer for sale of 0.57 crore shares aggregating to Rs 47.23 crores aggregating to Rs 169.65 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Thursday, September 12, 2024.
The total issue size of this IPO amounts to Rs. 169.65 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 5th Sept 2024 |
| Closing Date | 9th Sept 2024 |
| Lot Size | 180 Shares |
| Face Value | Rs. 10 |
| IPO Size | Rs. 169.65 Cr |
| Fresh Issue | Rs. 122.43 Cr |
| IPO Price Range | Rs. 78 – 83 |
| Min. Investment | Rs. 14,940 |
| Offer for Sale (OFS) | Rs. 47.23 Cr |
| Employee Discount | N/A |
| Basis of Allotment | 10th Sept 2024 |
| Refunds | 11th Sept 2024 |
| Listing Date | 12th Sept 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Market Lot
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) minimum market lot is 180 shares with ₹14,940 application amount. The retail investors can apply up to 13 lots with 2340 shares or ₹194,220 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 180 | ₹14,940 |
| Retail Maximum | 13 | 2,340 | ₹194,220 |
| S-HNI Minimum | 14 | 2,520 | ₹209,160 |
| B-HNI Minimum | 67 | 12,060 | ₹1,000,980 |
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Book Running Lead Managers –
- Pnb Investment Services Ltd
- Unistone Capital Pvt Ltd
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Registrar to the offer –
The registrar for the Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) is Link Intime India Private limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
- Repayment and/or prepayment, in part or full, of certain of the outstanding loans availed by the Company.
- Investment in HPPL, STBFL and JPPL subsidiaries for Repayment and/or prepayment, in part or whole, of certain outstanding borrowings availed.
- Funding the company’s increased need for working capital.
- Investment in the subsidiaries HPPL, STBFL and JPPL to meet working capital needs and
- General corporate purposes.
Key Performance Indicator –
The market capitalization of Shree Tirupati Balajee Agro Trading company limited is Rs 677.04 Cr.
KPI as of March 31, 2024.
| Earning Per Share (EPS): Post IPO | ₹4.42 per Equity Share |
| Price/Earning P/E Ratio: Post IPO | 18.77 |
| Return on Net Worth (RoNW): | 20.84% |
| PAT Margin(%) | 6.53 |
| Net Asset Value (NAV): | ₹27.54 per Equity Share |
Financial Status –
The company’s revenue grew by 16% and PAT increased by 74% during FYs ending 31 March 2024 and 31 March 2023
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The total assets of the company are Rs.516.94 crore.
The company’s total revenue is over Rs.552.82 crore.
The company’s PAT is Rs.36.07 crore.
The net worth of the company is Rs.173.07 crore.
The company’s EBITDA is Rs.75.07 crore.
| Particulars(in Rs. Crores) | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
| Revenue From Operations | 552.82 | 478.14 | 453.79 |
| PAT | 36.07 | 20.72 | 13.66 |
| Net Worth | 173.07 | 110.21 | 92.23 |
| Total Assets | 516.94 | 392.46 | 391.89 |
| Reserves and Surplus | 106.24 | 109.05 | 91.08 |
Valuation of P/E Ratio :
The P/E Ratio of Shree Tirupati Balajee IPO is 18.77
Comparative Analysis with Listed Peers :
The average P/E Ratio of the industry is 30.74x.
The P/E ratio of Shree Tirupati Balajee IPO as compared with the industry’s average P/E of 30.74x has an undervaluation. Hence the price of the Shree Tirupati Balajee IPO seems fairely priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) –
Shree Tirupati Balajee Agro Trading Company Limited peer comparison with similar listed entities.
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | Financial statements |
|---|---|---|---|---|---|---|
| Shree Tirupati Balajee Agro Trading Company Limited | 5.74 | 5.74 | 27.54 | 20.84 | Consolidated | |
| Commercial Syn Bags Ltd | 1.81 | 1.81 | 32.02 | 37.13 | 5.66 | |
| Emmbi Industries Ltd | 5.62 | 5.62 | 96.17 | 22.07 | 5.85 | |
| Rishi Techtex Ltd. | 1.82 | 1.82 | 43.09 | 33.01 | 4.23 |
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Strengths –
A varied clientele.
Cost-effectiveness of FIBCs.
A diverse range of products.
An integrated manufacturing facility.
Quality standard certifications and quality tests.
Senior management and an experienced promoter.
A multi-market company.
Product development capabilities.
Growing demand for sustainable packaging solutions.
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Weakness –
Its main raw materials are polypropylene granules, polypropylene (LDPE), and high-density polyethylene (HDPE) of various grades. These materials account for a sizeable portion of the company’s overall costs. The company is vulnerable to negative effects from changes in the price of crude oil, which can affect the cost of polymers, as well as risks related to foreign exchange fluctuations when importing polymers.
The company’s operating, investment, and financing actions have resulted in negative cash flows in previous years. A persistently negative cash flow could hinder the company’s expansion.
The company will not get any funds from the Offer for Sale part.
The need to reduce pollution has come to light, and numerous economies-including India have thrown their support behind the campaign to outlaw plastic products. Its business may suffer materially if any of the plastic packaging goods it makes are outlawed in India or any of the markets to which it exports.
Because its sector is labor-intensive, work stoppages, strikes, or rising employee wage demands could materially negatively impact its business operations.
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) Status
Baazar Style Retail Limited IPO (Baazar Style Retail IPO) allotment status will be available on Link Intime’s website.
Click on Link Intime IPO weblink to get allotment status.
Shree Tirupati Balajee Agro Trading Company Limited IPO (Shree Tirupati Balajee IPO) GMP Today –
IPO’s last GMP is ₹21, last updated 4th Sept 2024. With the price band of 83.00, IPO’s estimated listing price is ₹104(cap price + today’s GMP). The expected percentage gain/loss per share is 25.30%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
