Shree Tirupati Balajee IPO Listing Today

Shree Tirupati Balajee Agro Trading, a manufacturer of flexible intermediate bulk containers (FIBCs) and industrial packaging products, made a decent debut on the Indian stock market on 12th September 2024, with its shares listing at a premium to the issue price. The company's initial public offering (IPO) generated robust demand from investors during its subscription period, setting the stage for a solid market debut.

Check Shree Tirupati Balajee IPO Subscription Status

Listing Details

• Listing Price: Shree Tirupati Balajee Agro Trading shares were listed at ₹90.00 per share on the National Stock Exchange (NSE), marking a positive start to its journey as a publicly traded company. On the Bombay Stock Exchange (BSE), the stock opened even higher at ₹92.90 per share.
• Comparison to Issue Price: The listing price represents a premium over the IPO issue price. Shree Tirupati Balajee Agro Trading had set its IPO price band from ₹78 to ₹83 per share, with the final issue price being fixed at the upper end ₹83.
• Percentage Change: The listing price of ₹90.00 on the NSE represents an 8.4% premium over the issue price of ₹83. On the BSE, the opening price of ₹92.90 represents an even higher premium of 11.93%.

First-Day Trading Performance

• Opening vs. Latest Price: Following its debut, Shree Tirupati Balajee Agro Trading's share price hit the 5% upper circuit, trading at ₹94.5 per share by 10:05 AM.
• Market Capitalisation: As of 10:40 AM, the company's market capitalisation stood at ₹770.84 crore

Market Sentiment and Analysis

• Market Reaction: The market reacted positively to Shree Tirupati Balajee Agro Trading's listing. The listing premium and subsequent upper circuit hit indicate robust demand and investor confidence in the company's prospects.
• Grey Market Premium: Prior to listing, shares were trading at a premium of ₹25 in the grey market, suggesting an expected listing gain that was partially realized.
• Subscription Rate: The IPO was massively oversubscribed by 124.74 times, with the retail category subscribed 73.22 times, NII category 210.12 times, and QIB category 150.87 times.

Growth Drivers and Challenges

Expected drivers of future performance:

• Strong market position in FIBC and industrial packaging
• Diversified customer base across various industries
• Consistent growth and improved margins

Potential Challenges:

• Competition in the packaging industry
• Dependence on raw material prices
• Economic fluctuations affecting client industries

Utilisation of IPO Proceeds

Shree Tirupati Balajee Agro Trading plans to use the funds for:

• Debt repayment
• Investments in subsidiaries HPPL, STBFL, and JPPL
• Meeting incremental working capital requirements
• General corporate purposes

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased from ₹475 crore in FY23 to ₹539 crore in FY24, a growth of 13.47%
• Net Profit rose from ₹20.7 crore in FY23 to ₹36 crore in FY24, a significant increase of 73.91%

As Shree Tirupati Balajee Agro Trading begins its journey as a listed entity, market participants will closely monitor its ability to leverage its position in the industrial packaging sector to drive future growth and shareholder value.