Shree Tirupati Balajee Agro Trading Company Limited is a significant player in the manufacturing and supply of Flexible Intermediate Bulk Containers (FIBCs) in India. The company has established itself as a leading exporter, serving markets across six continents, including major countries like the USA, Germany, and Australia. With over 20 years of experience, it operates in various sectors such as chemicals, agriculture, food products, and construction.
The company is headquartered in Pithampur, Madhya Pradesh, where all its manufacturing facilities are located. This geographic concentration, while advantageous in some respects, also poses a risk if any disruption occurs at these facilities.
Financially, Shree Tirupati Balajee Agro has shown growth, with revenues increasing year on year. For example, in FY2024, the company’s revenue from operations reached ₹539.66 crores, showing a 13.51% growth compared to the previous year. Despite this growth, the company has faced challenges, including negative cash flows from operations in recent years.
In 2024, the company launched an Initial Public Offering (IPO) to raise ₹169.65 crores. This includes a fresh issue of ₹122.43 crores and an offer for sale of ₹47.23 crores. The company’s valuation based on the IPO price band was approximately ₹676.87 crores
Shree Tirupati Balajee Agro Trading Company Limited is preparing to launch its Initial Public Offering (IPO) in September 2024. The company aims to raise a total of ₹169.65 crores through this IPO. This amount comprises a fresh issue of ₹122.43 crores and an offer for sale of ₹47.23 crores.
Key Details of the IPO:
- IPO Dates:
- Opening Date: September 6, 2024
- Closing Date: September 8, 2024
- Allotment Date: September 10, 2024
- Listing Date: September 12, 2024
- Price Band: The IPO is priced with a band of ₹83 per share. Based on this, the company’s post-IPO market valuation is estimated to be around ₹676.87 crores.
- Lot Size: The minimum lot size for investors is 180 shares, costing approximately ₹14,940. Retail investors can apply for up to 13 lots, amounting to 2,340 shares.
- Use of Proceeds: The funds raised from the fresh issue will primarily be used to meet working capital requirements, repay or prepay certain borrowings, and for general corporate purposes.
- Financial Overview: The company has demonstrated steady growth in recent years, with a revenue of ₹539.66 crores in FY2024, reflecting a 13.51% increase from the previous fiscal year. However, there have been challenges such as negative cash flows from operations, which the company needs to address.
- Subscription Details: The IPO will be available to various investor categories, with 50% of the offer allocated to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 35% to Retail Individual Investors (RIIs)
