Shree Tirupati Balajee Agro Trading IPO opens for subscription: Key dates, strengths, risks, financials and more

Shree Tirupati Balajee Agro Trading IPO opened for subscription on Thursday, September 5. The initial public offering, which will conclude on September 9, has set a price band of ₹78-₹83 per share.

The initial share sale plans to raise ₹169.65 crore via a fresh issue of 1.47 crore equity shares and an offer-for-sale (OFS) of 56.9 lakh shares by promoter Binod Kumar Agarwal.

The company will use the fresh issue proceeds for debt repayment, investment in subsidiaries, support capital requirements, and general corporate purposes.

Investors can bid for at least 180 equity shares and in multiples after that.

Half of the IPO has been set aside for qualified institutional buyers (QIBs), 35% for retail individual investors and 15% for non-institutional investors (NIIs).

It caters to the needs of diverse industries, such as chemicals, food mining, agrochemicals, agriculture, waste disposal, lubricants, and edible oil.

Shree Tirupati Balajee Agro Trading Company: Timeline

• Bidding period: September 5 to September 9
• Allotment finalisation: September 10
• Refund initiation: September 11
• Demat transfer: September 11
• Listing on NSE and BSE: September 12

Shree Tirupati Balajee Agro Trading IPO: Financials

The company had reported a consolidated revenue from operations of ₹539.6 crore for the financial year 2023-24, up 13.5% from ₹475.43 crore in the year-ago period. The profit after tax (PAT) surged by 74.1% to ₹36 crore for FY24 from ₹20.7 crore in the previous fiscal.

Shree Tirupati Balajee Agro Trading IPO: Strengths

• Diverse customer base
• Lower packaging and transportation costs as FIBCs are lighter.
• Multi-product portfolio
• Strategically located manufacturing facilities
• Products compliant with global quality standards and ISO certifications.
• International presence
• Operates in a growing industry

Shree Tirupati Balajee Agro Trading IPO: Risks and threats

• Exposed to risks linked to the geographical concentration of its manufacturing plants like competition, political, economic, demographic and other changes in Madhya Pradesh.
• Increased awareness of controlling pollution and the country’s efforts in this direction might negatively impact its business as a plastic manufacturer.
• It has experienced negative cash flows previously
• It depends on polymers and is exposed to adverse impacts from fluctuations in crude oil prices, which affect polymer costs.
• Has total outstanding borrowings worth ₹245 crore as of May 31, 2024 and may incur further indebtedness during business.
• Exposed to forex rate fluctuations
• It highly depends on a few customers

Unistone Capital and PNB Investment Services are book-running lead managers to the issue.