Shree Tirupati Balajee IPO Anchor Allocation at 30%

Shree Tirupati Balajee IPO saw a positive anchor allocation response, with 30% of the total IPO size subscribed by anchor investors. Out of 20,440,000 shares on offer, anchors picked up 6,132,000 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 4th September 2024, just ahead of the IPO opening on 5th September 2024.

The book-built issue of ₹169.65 crores comprises a fresh issue of 14,750,000 shares aggregating ₹122.43 crores and an offer for sale of 5,690,000 shares aggregating ₹47.23 crores. The price band is set at ₹78 to ₹83 per share, with a face value of ₹10 per share. This includes a share premium of ₹73 per share at the upper end of the price band.

The anchor allocation process, which took place on 4th September 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹83 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the 61,32,000 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 20% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Shree Tirupati Balajee Agro Trading Company Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): October 10, 2024
• Lock-in Period (Remaining Shares): December 9, 2024

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Shree Tirupati Balajee IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 4th September 2024, Shree Tirupati Balajee IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 61,32,000 shares were allotted to 6 anchor investors. The allocation was done at the upper IPO price band of ₹83 per share, resulting in an overall anchor allocation of ₹50.90 crore. The anchors have already absorbed 30.00% of the total issue size of ₹169.65 crore, indicating strong institutional demand.

The entire anchor allocation of ₹50.90 crore was spread across the 6 major anchor investors. The detailed and comprehensive report on the anchor allocation can be accessed on the BSE website.

Key IPO Details:

• IPO Size: ₹169.65 crores
• Shares Allocated to Anchors: 6,132,000
• Anchor Subscription Percentage: 30%
• Listing Date: 12th September 2024
• IPO Opening Date: 5th September 2024

About Shree Tirupati Balajee IPO and How to apply for Shree Tirupati Balajee IPO

Shree Tirupati Balajee Agro Trading Company Limited, established in October 2001, is a leading manufacturer of Flexible Intermediate Bulk Containers (FIBCs) and other industrial packaging products. The company has built a strong reputation in the packaging industry, catering to various sectors, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil.

The company operates through several subsidiaries:

• Honourable Packaging Private Limited (HPPL)
• Shree Tirupati Balajee FIBC Limited (STBFL)
• Jagannath Plastics Private Limited (JPPL)

With five manufacturing units certified with ISO standards (ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO 14064-1:2018), the company has established a strong presence in both domestic and international markets. Their product range includes FIBCs, woven sacks, woven fabric, narrow fabric, and tapes.

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Note: This Article is intended solely for educational purposes. The securities referenced are provided as examples and do not constitute recommendations. The content is derived from various secondary online sources and may be subject to change. It is advisable to consult a professional expert before making any related decisions.