The IPO of Shree Tirupati Balajee Agro Trading is grabbing everyone’s attention! By the second day, the subscription rate skyrocketed to 18.17 times, showing how excited investors are about it. Non-institutional investors could not get enough, subscribing 28.56 times, while retail investors followed closely at 21.42 times. Even the big players, the qualified institutional buyers (QIBs), were keen, subscribing 4.69 times.
From September 5 to September 9, a big IPO will be happening! They are putting out 20,440,000 equity shares for sale. However, here is the cool part, those shares are divided up like this: half for the big-shot investors (the QIBs), 35% for regular folks like you and me, and the last 15% goes to those non-institutional investors.
The price per share is set between Rs 78 and Rs 83, and if you want to buy at least 180 shares at once, no less, but you can go higher in steps. But wait, there’s more buzzing in the background. In the grey market, sort of like a secret side market, Shree Tirupati Balajee’s shares are making waves! They sell at a grey market premium (GMP) of Rs 40.
That’s big news because it suggests the share price could increase by a whopping 49%! What’s all this money for? Well, they plan to pay off some debts, put more cash into other companies they own like HPPL, STBFL, and JPPL, and even cover extra costs like more working capital. Plus, they will handle other regular business stuff, too.
Shree Tirupati Balajee Agro Trading is not just any company, it is a top name in making flexible intermediate bulk containers (FIBCs) and other packaging products like woven sacks, woven fabric, and narrow fabric tapes. It has carved out a leading spot in the FIBC and industrial packaging market, consistently growing stronger financially and improving profit margins.
For 2024, their revenue jumped 13% to Rs 540 crore, thanks mostly to domestic sales, while profit after tax zoomed up 74% to hit Rs 36 crore. PNB Investment Services and Unistone Capital are the lead managers, and Link Intime India handles the registration. The shares are set to be listed on both the BSE and NSE.
Swastika Investment sees the company’s strong position and potential for trimming down debt as appealing options for long-term investors. However, they also suggest monitoring the risks tied to debt and cash flow, advising investors to tread wisely.
