What You Must Know About Shree Tirupati Balajee IPO: Price Band ₹78 to ₹83 Per Share

Established in October 2001, Shree Tirupati Balajee Agro Trading Company Limited manufactures and sells Flexible Intermediate Bulk Containers (FIBCs) and other industrial packaging products. The company's product range includes:

• Flexible Intermediate Bulk Containers (FIBCs)
• Woven sacks
• Woven fabric
• Narrow fabric
• Tapes

Shree Tirupati Balajee caters to the bulk packaging needs of clients from various industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil. The company offers customized products to meet specific client requirements.

Key Highlights of Shree Tirupati Balajee's Operations:

• Operates through subsidiaries: Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL)
• Five manufacturing units with various ISO certifications
• 857 department employees as of July 2024

The Objective of the Issue

• Debt Repayment: Repayment and/or prepayment of certain outstanding borrowings from the Company and its subsidiaries.
• Working Capital: Funding the company's and its subsidiaries' incremental working capital requirements.
• General Corporate Purposes: Allocation of funds for various corporate activities aligning with the company's strategic goals.

Highlights of Shree Tirupati Balajee IPO

Shree Tirupati Balajee IPO is set to launch with a book-built issue of ₹169.65 crores. The issue combines a fresh issue and an offer for sale. Here are the key details of the IPO:

• The IPO opens for subscription on 5th September 2024 and closes on 9th September 2024.
• The allotment is expected to be finalized on 10th September 2024.
• Refunds will be initiated on 11th September 2024.
• Credit of shares to Demat accounts is also expected on 11th September 2024.
• The company will tentatively list on BSE and NSE on 12th September 2024.
• The price band is set at ₹78 to ₹83 per share.
• The lowest lot size for the IPO application is 180 shares.
• Retail investors need to invest a minimum of ₹14,940.
• The minimum investment for small NII (sNII) is 14 lots (2,520 shares), amounting to ₹209,160.
• The minimum investment for big NII (bNII) is 67 lots (12,060 shares), amounting to ₹1,000,980.
• Pnb Investment Services Ltd and Unistone Capital Pvt Ltd are the book-running lead managers for the IPO.
• Link Intime India Private Ltd serves as the registrar.

Shree Tirupati Balajee IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 9th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Shree Tirupati Balajee IPO Issue Details/Capital History

The Shree Tirupati Balajee IPO is scheduled from 5th September to 9th September 2024, with a price band of ₹78 to ₹83 per share and a face value of ₹10. The total issue size is 20,440,000 shares, raising up to ₹169.65 crores. This includes a fresh issue of 14,750,000 shares aggregating to ₹122.43 crores and an offer for sale of 5,690,000 shares aggregating to ₹47.23 crores. The shareholding will increase from 66,820,852 pre-issue to 81,570,852 post-issue.

Shree Tirupati Balajee IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for at least 180 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Shree Tirupati Balajee Ltd

• Strengths: Established player in the industrial packaging sector with over two decades of experience, diverse product range, multiple manufacturing units with international certifications, strong subsidiary network enhancing operational capabilities.
• Weaknesses: High debt-to-equity ratio of 1.41 as of March 31, 2024, dependency on specific industries for revenue generation, potential vulnerability to fluctuations in raw material prices.
• Opportunities: Growing demand for flexible packaging solutions across industries, potential for geographical expansion in domestic and international markets, scope for product innovation and diversification.
• Threats: Intense competition in the packaging industry, regulatory changes affecting manufacturing processes or raw material sourcing, economic downturns impacting client industries and overall demand.

Financial Highlights: Shree Tirupati Balajee Ltd

The consolidated financial performance of Shree Tirupati Balajee Agro Trading Company Limited demonstrates a strong growth trajectory over the past three fiscal years. Assets have shown significant growth, increasing from ₹9,771.82 lakhs in FY22 to ₹51,694.07 lakhs in FY24, representing a growth of about 30% over two years. Revenue has seen consistent growth, rising from ₹45,378.77 lakhs in FY22 to ₹55,282.11 lakhs in FY24, marking a solid growth of about 21.8% over two years. The profit after tax (PAT) figures underscore the company's improving profitability, with a substantial growth of about 164% over two years. The company's net worth has shown strong growth, increasing by about 87.6% over two years, reflecting the company's ability to generate and retain earnings. Total borrowings have remained relatively stable, coupled with increasing net worth, improving the company's financial leverage.