Shree Tirupati Balajee IPO Listing: Stock list at 11% premium over IPO price
Shree Tirupati Balajee IPO Listing
Shree Tirupati Balajee IPO Listing: Shares Surge to Upper Circuit with 17.52% First-Day Gain
Shree Tirupati Balajee Agro Trading Company, a prominent name in the flexible intermediate bulk container (FIBC) industry, made an impressive debut on the stock exchanges today.
The company, known for its large flexible bags and woven fabrics, attracted significant attention from investors, leading to a strong initial performance in the stock market.
IPO Overview and Listing Performance
The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading Company was priced at ₹83 per share. Upon listing, the shares made a remarkable entry on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The stock began trading at ₹92.90 on the BSE and ₹90.00 on the NSE, marking an initial premium of approximately 11.93% over the issue price.
The positive momentum continued throughout the trading day. The share price surged to the upper circuit limit of ₹97.54 on the BSE and closed at this level.
This represented a notable 17.52% gain for investors who participated in the IPO, showcasing the market’s enthusiasm and confidence in the company’s prospects.
Investor Response and Subscription Details
The Shree Tirupati Balajee IPO was open for subscription from September 5 to September 9, and it witnessed an overwhelming response from the investing community.
The IPO was oversubscribed by a staggering 124.74 times overall. This strong demand underscores the high level of investor interest in the company’s growth potential and financial stability.
Breaking down the subscription details:
- Qualified Institutional Buyers (QIBs): The portion reserved for QIBs was oversubscribed 150.87 times. This significant oversubscription reflects the confidence institutional investors have in Shree Tirupati Balajee’s long-term growth and financial health.
- Non-Institutional Investors (NIIs): The NII segment saw a subscription rate of 210.12 times. This indicates robust interest from high-net-worth individuals and other non-institutional entities.
- Retail Investors: The retail portion was subscribed 73.22 times. This high subscription rate highlights the strong appeal of the IPO among individual investors.
In total, the IPO comprised new shares worth ₹122.43 crore and included an Offer for Sale (OFS) of 56.90 lakh shares, each with a face value of ₹10.
The proceeds from the OFS will benefit the selling shareholders, while the funds raised from the issuance of new shares will be allocated towards debt repayment, increasing working capital, investing in subsidiaries, and other general corporate purposes.
Company Profile and Business Operations
Shree Tirupati Balajee Agro Trading Company, established in October 2001, specializes in the production of FIBCs, which are large, flexible bags used for the bulk handling of materials.
These products are widely used across various industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oils.
The company operates through five manufacturing units and has a well-established network of subsidiaries, including:
- Honorable Packaging Private Limited
- Sri Tirupati Balaji FIBC Limited
- Jagannath Plastics Private Limited
These subsidiaries contribute to the company’s diverse product offerings and enhance its manufacturing capabilities. Shree Tirupati Balajee’s products are sold globally, highlighting its significant market presence and international reach.
Financial Performance and Growth Trajectory
Shree Tirupati Balajee has demonstrated robust financial growth over recent years. The company’s financial performance has been characterized by a consistent increase in profitability and revenue, reflecting its operational efficiency and strong market demand.
- Fiscal Year 2022: The company reported a net profit of ₹13.66 crore. This was a solid performance, laying a foundation for future growth.
- Fiscal Year 2023: The net profit increased to ₹20.72 crore, showcasing an upward trajectory in financial performance.
- Fiscal Year 2024: The company achieved a remarkable net profit of ₹36.07 crore. This significant jump underscores the company’s successful expansion strategies and operational improvements.
In terms of revenue, Shree Tirupati Balajee has achieved a compound annual growth rate (CAGR) of over 10% annually, with total revenue reaching ₹552.82 crore.
This steady revenue growth reflects the company’s effective business strategies, market expansion efforts, and increasing demand for its products.
Strategic Utilization of IPO Proceeds
The funds raised from the IPO are crucial for the company’s strategic initiatives. Specifically:
- Debt Repayment: A portion of the IPO proceeds will be used to repay existing debt. Reducing debt levels will strengthen the company’s balance sheet and improve financial stability.
- Working Capital: Additional funds will be allocated to enhance working capital requirements, ensuring the company has sufficient liquidity to support its operations and growth initiatives.
- Investment in Subsidiaries: The company plans to invest in its subsidiaries to support their working capital needs and contribute to their overall growth and development.
- General Corporate Purposes: Some funds will be used for general corporate purposes, allowing the company to pursue various business opportunities and enhance its operational capabilities.
Final Remarks
The successful listing of Shree Tirupati Balajee Agro Trading Company and the strong initial performance of its shares reflect the company’s solid market position and growth potential.
With a highly oversubscribed IPO, positive market reception, and a clear strategic plan for utilizing the proceeds, Shree Tirupati Balajee is well-positioned to continue its growth trajectory and deliver value to its investors.
The company’s robust financial performance and expanding global presence further reinforce its status as a key player in the FIBC industry.
