The public issue of Shree Tirupati Balajee is available at a price band of Rs 78-83 per share, with a lot size of 180 shares. Accordingly, investors can bid for a minimum of 180 shares and in multiples thereof. The minimum amount required by a retail investor to apply for the Shree Tirupati Balajee IPO is Rs 14,940 for one lot of 180 shares.
Meanwhile, the unlisted shares of Shree Tirupati Balajee are commanding a strong premium in the grey market on the first day of the IPO, reflecting favorable market sentiment. According to sources tracking grey market activities, Shree Tirupati Balajee shares were trading at a premium of Rs 25, or 30.12 per cent, at the upper end of the issue price. A positive grey market premium often indicates favorable market sentiment for the public issue, as well as potential listing gains.
The company intends to use the net proceeds from the IPO for repayment and/or prepayment, in part or in full, of certain outstanding borrowings. Additionally, Shree Tirupati Balajee will use the remaining proceeds for investments in its subsidiaries HPPL, STBFL, and JPPL for repayment and/or prepayment of outstanding borrowings, as well as for working capital requirements and general corporate purposes.
The three-day subscription window for Shree Tirupati Balajee’s IPO ends on Monday, September 9, 2024. Following the closure of the subscription window, the basis of allotment is likely to take place on Tuesday, September 10, 2024, while the company’s shares will be credited to demat accounts on Wednesday, September 11, 2024.
Shree Tirupati Balajee shares are slated to make their debut on the bourses on Thursday, September 12, 2024, by listing on both BSE and NSE.
Shree Tirupati Balajee IPO review
Should you subscribe to the Shree Tirupati Balajee IPO?
Anand Rathi Research Team – Subscribe
Analysts at Anand Rathi remain bullish on the public issue of Shree Tirupati Balajee and recommend bidding for the IPO. According to the brokerage, at the upper price band, the company is valued at a P/E of 18.7x with a market cap of Rs 677 crore post-issue, and a return on net worth of 20.8 per cent. On the valuation front, the brokerage believes the company is fairly priced. “Thus, we recommend a ‘Subscribe’ rating for the IPO,” said the brokerage in its report.
Swastika Investmart – May Subscribe for the long-term
“Given the company’s market leadership and potential for debt reduction, long-term investors may consider subscribing to the IPO. However, careful evaluation of the debt and cash flow risks is essential,” said the brokerage in its report.
About Shree Tirupati Balajee
Shree Tirupati Balajee Agro Trading Company is engaged in the business of manufacturing and selling 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 domestic and overseas markets. The company provides bulk packaging solutions for clients in industries such as chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil by supplying customized FIBC products for transportation and packaging needs.
First Published: Sep 05 2024 | 10:17 AM IST
