Shree Tirupati Balajee is an agro-trading company that has launched its IPO today to be subscribed. The firm seeks to mobilise ₹ 169cr to fund its operations and expansion for the next fiscal year. Raise $15.65 crore through this IPO by a new share sale that can comprise 14,750,000 equity shares and a sale of existing 5,690,000 equity shares bot,h at the face value of ₹ ten each.
The IPO is offered at a PER of 78-83, and the lot size is 180 shares. This means that investors can buy a minimum of 180 shares and then in increments of 180. For retail investors, the minimum investment amount needed is ₹14,940 for one lot of 180 shares.
Shree Tirupati Balajee IPO exists, and the unlisted shares of Shree Tirupati Balajee are trading in the grey market with a premium price on the first day of its IPO. These shares the sources that track the grey market activity suggest that these shares are being traded at ₹25 or 30, 12% above the upper end of the issue price of SEK.
High grey market premiums, especially for stocks with a high institutional holding index, provide indications of a positive market outlook and possible listing gains.
The company intends to use all the net proceeds of the offering to repay or prepay certain drawings. The balance will be utilized by its subsidiaries HPPL, STBFL, and JPPL to repay/prepay its borrowings, working capital, and other corporate expenses.
The IPO is open for subscription till Monday, Sep 09, 2014. The allotment is, however, dependent on the number of subscribers that arise from the subscription, where the basis of allotment is expected to be released on Tuesday, the 10 of September, 2024.
The shares of the company will be debited into dematerialised accounts on Wednesday, falling on September 11, 2024, and the company’s shares will, for the first time, trade on the stock exchanges on the Thursday, falling on September 12, 2024.
ALSO READ: High Demand for Shree Tirupati Balajee IPO on Day 2: Subscription and GMP Overview
Analysts at KRChokes, Anand Rathi, have given the IPO a thumbs-up by advising that investors should subscribe to the issue. They also point out that the company is priced at a P/E ratio of 18 at the upper price band. 7x, having a market capitalization of ₹677 crore post-issue and a return on net worth of 20%. 8%. They think that the IPO is prudently priced and, therefore, have recommended the IPO through a ‘Subscribe’ call.
Swastika Investmart’s aim is that investors may subscribe to the IPO for the long run. While they do not disagree with fairly priced stocks, they raise eyebrows about the high debt-equity, corporate guarantees, and negative operating cash flows. They suggest assessing the level of risks involved before any investment is made.
Master Capital Services also advises that one should subscribe to the IPO for a medium to long-term investment.
They point to factors such the increased usage of FIBCs in industries including chemicals, construction and food agriculture industries which have resulted into healthy capacity gains in the FIBC industry. Some of them mention that the FIBC industry has been experiencing the compound annual growth rate of 1%. 8% during the year 2020-2023 because of consecutive innovations and new process integration.
Flexible Intermediate Bulk Container, or FIBC, is a product manufactured by Shree Tirupati Balajee Agro Trading Company. It is used for packing and transporting bulk. Olivers is established and has dominion over the market. It is targeting to extend the extent of its operations after coming up with IPO funds.
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