Shree Tirupati Balajee Agro Trading Company Limited

About Shree Tirupati Balajee Agro Trading Company Limited

Incorporated in 2001, Shree Tirupati Balajee Agro Trading Company Limited manufactures 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. 

It offers customised products for transportation purposes and packaging requirements to diverse industries, such as chemicals, agrochemicals, food mining, waste disposal, agriculture, lubricants, and edible oil.

The company sources its raw materials from India, with 95% of the materials sourced from one major petrochemical industry on a contract basis. However, it also imports a portion of its raw materials from countries like Singapore, China, Turkey, Vietnam, and Spain.

Its five manufacturing plants are located in Indore, Madhya Pradesh, and it manages its business through subsidiaries: Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL). 

It serves customers worldwide, with five of its top 10 customers coming from outside India, such as Sweden, the USA, the UK, Germany, and Australia, in FY24. 

Between FY22 and FY24, it saw a 6% CAGR rise in its revenue from operations and 38% in its profit. Meanwhile, consumption in the FIBC Industry is growing at a 5% CAGR between 2020 to 2023 and is expected to improve further, reaching around 69.1 million units by the end of 2024, which could benefit the company. 

And now, Shree Tirupati Balajee Agro Trading Company Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹169.65 crore, comprising fresh issue, aggregating to ₹122.43 crore, as well as an offer for sale, aggregating to ₹47.23 crore. The money raised from the fresh issue will be utilised to repay borrowings, invest in subsidiaries, fund working capital requirements, and for general corporate purposes. Its shares will be listed on the NSE and BSE.

Here are key details about the Shree Tirupati Balajee Agro Trading Company IPO:

Financial snapshot

Here’s a quick look at Shree Tirupati Balajee Agro Trading Company Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Diverse customer base with clients across various industries.
2. FIBCs are lighter and, hence, have lower packaging and transportation costs. This cost-effectiveness makes their adoption rate higher than that of corrugated paper packaging. 
3. Multi-product portfolio and the ability to adjust to the needs of its customers. 
4. Integrated and strategically located manufacturing facilities give access to major industrial zones and are well-connected to ports, airports, and highways. 
5. Products meet global quality standards and ISO certifications. 
6. A multi-market company with a presence in 38 countries on six continents, including the USA, Germany, Australia, UK, Singapore, Canada, France, New Zealand, Chile, Sweden, Switzerland, Spain, and Malaysia.
7. Operates in a growing industry as FIBCs are a more sustainable packaging solution than traditional packaging materials. 

Risks and threats

1. Exposed to risks associated with the geographical concentration of its manufacturing facilities like competition, economic, political, demographic and other changes in the state of Madhya Pradesh.
2. Increased awareness of controlling pollution and India’s efforts in this direction might negatively affect its business as a plastic manufacturer.
3. It has experienced negative cash flows from investing and operating activities in the last three fiscal years as it prepaid certain creditors to maintain good relations with customers. 
4. It depends on polymers and is hence susceptible to adverse impacts from fluctuations in crude oil prices affecting polymer costs and risks associated with foreign exchange movements during polymer imports.
5. Has total outstanding borrowings amassing to ₹245 crore as of 31 May 2024 and may incur further indebtedness during the course of business. 
6. Exposed to forex rate fluctuations, as 49% of its revenue came from exports in FY24. 
7. It is highly dependent on a few customers, as its top 1 customer accounted for 9% of its revenue in FY24.

Shree Tirupati Balajee Agro Trading Company Limited IPO details

| Shree Tirupati Balajee Agro Trading Company Limited IPO date

According to the offer document filed by the company with the SEBI, the Shree Tirupati Balajee Agro Trading Company IPO’s opening date – in other words, the Shree Tirupati Balajee Agro Trading Company IPO launch date – will be 5th September 2024. The Shree Tirupati Balajee Agro Trading Company IPO closing date is 9th September 2024. After this, investors will be updated about the allotment status on 10th September 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 11th September 2024. The Shree Tirupati Balajee Agro Trading Company IPO listing date is 12th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

| Shree Tirupati Balajee Agro Trading Company Limited IPO Price Band

The IPO is a fresh issue and an offer for sale. The Shree Tirupati Balajee Agro Trading Company IPO price band has been set between ₹78 and ₹83 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Shree Tirupati Balajee Agro Trading Company IPO listing price will be determined on 12th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges

| Shree Tirupati Balajee Agro Trading Company Limited IPO Lot size

The Shree Tirupati Balajee Agro Trading Company IPO details have been declared. The Shree Tirupati Balajee Agro Trading Company IPO lot size is set at 180 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Shree Tirupati Balajee Agro Trading Company IPO issue size is approx ₹169 crore.

How to pre-apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO?

You can pre-apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Shree Tirupati Balajee Agro Trading Company Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Shree Tirupati Balajee Agro Trading Company Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Shree Tirupati Balajee Agro Trading Company Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Shree Tirupati Balajee Agro Trading Company Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Shree Tirupati Balajee Agro Trading Company Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO

To apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.