Shree Tirupati Balajee Agro IPO: key dates, details & pricing

Amid the many investment opportunities, the Shree Tirupati Balajee Agro Trading Company IPO emerges as a noteworthy option. For those looking at upcoming IPOs to invest in, this IPO could be a compelling choice. Exploring this opportunity may help you assess its potential within the context of your overall IPO investment strategy. As you consider your options, understanding the specifics of this IPO will be key to making an informed decision. Read this article to get a Shree Tirupati Balajee Agro Trading Company IPO review and the company. 

Shree Tirupati Balajee Agro Trading Company IPO details

The Shree Tirupati Balajee IPO is a book-built issue valued at ₹169.65 crores. This offering includes a fresh issue of 1.48 crore shares worth ₹122.43 crores and an offer for sale of 0.57 crore shares totalling ₹47.23 crores.

Set to open on September 5, 2024, and close on September 9, 2024, the Shree Tirupati Balajee IPO will finalise allotments on September 10, 2024. It will be listed on both BSE and NSE, with the expected listing date being September 12, 2024. For those exploring upcoming IPOs to invest in, this IPO presents a notable opportunity. The minimum Shree Tirupati Balajee Agro Trading Company IPO lot size is 180 shares. 

Shree Tirupati Balajee Agro Trading Company Limited: company overview

Founded in October 2001, Shree Tirupati Balajee Agro Trading Company Limited specialises in manufacturing and selling Flexible Intermediate Bulk Containers (FIBCs) and other industrial packaging products like woven sacks, fabric, and tapes. The company caters to a range of industries, such as chemicals, agriculture, food, and mining, and offers customised bulk packaging solutions both domestically and internationally.

Shree Tirupati Balajee operates five manufacturing units, with several being ISO certified for quality and environmental management. The company also manages subsidiaries like Honourable Packaging Private Limited (HPPL) and Shree Tirupati Balajee FIBC Limited (STBFL). As of July 2024, the company employs 857 people across its departments.

Shree Tirupati Balajee Agro Trading Company's financial performance

Shree Tirupati Balajee Agro Trading Company Limited saw its revenue grow by 16% and its profit after tax (PAT) surge by 74% between the fiscal years ending March 31, 2024, and March 31, 2023. The company's IPO has a market capitalisation of ₹677.04 crore. As of September 3, 2024, the latest Shree Tirupati Balajee Agro Trading Company IPO GMP is ₹8, with a price band set at ₹83. Based on the current GMP, the estimated listing price is ₹91 per share, reflecting an expected gain of approximately 9.64% per share.

*Amounts in ₹ Crore

Shree Tirupati Balajee Agro Trading Company IPO review

Investing in upcoming IPOs can be an attractive opportunity, especially when evaluating the strengths and risks associated with a company. Shree Tirupati Balajee Agro Trading Company Limited, an established player in the industrial packaging sector, offers a mix of potential benefits and challenges that every IPO investor should consider. Below is an overview of the key strengths and risks related to this IPO investment.

Strengths

• Diverse industry presence: Serves multiple sectors including chemicals, agriculture, and food, with a robust FIBC product line, promising stable and predictable revenue streams.
• Strategic location: Advanced manufacturing facilities located near Mumbai, providing excellent connectivity to major ports and highways, optimising distribution and reducing costs.
• High standards: Holds ISO 9001:2015 and ISO 22000:2018 certifications, ensuring rigorous quality controls at all production stages, leading to high client satisfaction.

Weaknesses

• Contingent liabilities: As of September 30, 2023, the company faces contingent liabilities of ₹7,641.49 lakhs, which include significant corporate guarantees and tax demands that could affect financial stability.
• Quality and technological adaptation: Failure to maintain quality standards or adapt to technological advancements could damage the company's reputation and financial health.
• Foreign exchange vulnerability: Fluctuations in exchange rates, particularly between the Indian Rupee and USD, could lead to financial losses and impact profitability.
• Regulatory risks on plastics: Growing scrutiny and potential bans on plastic products could severely affect Shree Tirupati's operations and market presence.

Key takeaways

When considering an investment in Shree Tirupati Balajee Agro Trading Company, it's essential to weigh the strengths and risks associated with this IPO. The company's diversified product line and strategic location offer promising growth potential, while contingent liabilities and market challenges present significant risks. 

As you evaluate upcoming IPOs to invest in, balancing these factors will be crucial in making an informed decision. To explore more investment opportunities, consider Ventura, a reliable platform for your IPO investment needs.

Frequently Asked Questions

1. What is the minimum IPO lot size of the Shree Balajee IPO?

The lot size for Shree Tirupati Balajee IPO is 180 shares, with a minimum investment requirement of ₹14,940.

2. When is the allotment date for Shree Tirupati Balajee's IPO?

The allotment for Shree Tirupati Balajee IPO will be finalised on Tuesday, September 10, 2024, and the shares shall be credited to your demat account by Wednesday, September 11, 2024.

3. When is the listing date for Shree Tirupati Balajee's IPO?

The listing date for Shree Tirupati Balajee IPO has yet to be officially announced. However, the tentative listing date is Thursday, September 12, 2024.