Shree Tirupati Balajee IPO: Review, Valuation, Date & GMP

Shree Tirupati Balajee IPO-Complete Overview

Shree Tirupati Balajee IPO a Mainboard IPO is a book-built issue of Rs.169.65 crore (20,440,000 Shares) by Shree Tirupati Balajee Agro Trading Company Ltd. The company was founded in October 2001. The company produces and sells Flexible Intermediate Bulk Containers (FIBCs), or large flexible bags. The company also offers other industrial packaging products like woven sacks, woven fabric, narrow fabric, and tapes for both India's domestic and international markets.

Customers from various industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil, are served by the company's tailored products and bulk packaging needs.

The FIBC market is projected to reach a valuation of 926 USD million in 2023, growing at a CAGR of 6.7%. By the end of 2024, it is projected to reach approximately 151.1 million units.

The Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL) subsidiaries are among the companies that the company uses to conduct business.

The business runs five production facilities. Both Unit I and II have obtained ISO 9001:2015 and ISO 14001:2018 certifications. Unit III possesses ISO 14001:2015, ISO 45001:2018, ISO 14064-1:2018, ISO 9001:2015, and SEDEX SMETA four-pillar certifications.

The company is certified to produce woven sacks, HDPE (high-density polyethylene), and PP (polypropylene) fabrics, as well as flexible intermediate bulk containers (FIBC).

This new IPO is to be launched on 05 September 2024, and its ‘initial public offering’ will end on 09 September 2024.

 

Shree Tirupati Balajee IPO Overview

The Rs.169.65 crore Shree Tirupati Balajee Agro Trading Company Ltd. IPO comprises a combination of a fresh Issue of 1.48 crore Shares amounting to Rs.122.43 crore and an Offer for Sale (OFS) of 0.57 crore Shares amounting to Rs.47.23 crore out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO date is from 05 September to September 09, 2024. The IPO listing is on Thursday, September 12, 2024, and it will be held on the BSE and NSE. Shree Tirupati Balajee IPO price band is between Rs.78 to Rs.83 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

 

Company Financial

The company’s revenue grew by 16% and PAT increased by 74% during FYs ending 31 March 2024 and 31 March 2023

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2024.

• The total assets of the company are Rs.516.94 crore.

• The company’s total revenue is over Rs.552.82 crore.

• The company’s PAT is Rs.36.07 crore.

• The net worth of the company is Rs.173.07 crore.

• The company's EBITDA is Rs.75.07 crore.

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in crore)

 

Product-wise Bifurcation of Revenue From Operations During Last Three Fiscals

(Values in lac)

Sales-wise Revenue Bifurcation For The Last Three Fiscals

(Values in lac)

 

Region-wise Revenue Bifurcation For The Last Three Fiscals

(Values in lac)

Detailed Video:

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Investment in HPPL, STBFL, and JPPL subsidiaries to repay or prepay all or part of several outstanding loans that have been obtained.

• Financing the company's increased need for working capital.

• Investing in HPPL, STBFL, and JPPL subsidiaries to meet working capital needs.

• Repayment of all or a portion of some outstanding loans that the company has taken out.

• Corporate purposes.

 

Peers of Shree Tirupati Balajee Ltd.

 

Evaluation

The Shree Tirupati Balajee IPO price is between Rs.78 to Rs.83 for each Share.

Evaluation of P/E Ratio

Considering the FY 2024, with an EPS of Rs.5.74 from the last year, the resulting P/E ratio is 14.46x.

Considering the weighted EPS of Rs.4.43 for the last three years, the P/E ratio is 18.73x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 30.74x.

Note: The EPS and weighted EPS of the company are as of 31 March 2024 and the industry P/E Ratio is computed based on the closing market price of the Share as of 31 August 2024.

 

IPO's Strengths 

• A varied clientele.

• Cost-effectiveness of FIBCs.

• A diverse range of products.

• An integrated manufacturing facility.

• Quality standard certifications and quality tests.

• Senior management and an experienced promoter.

• A multi-market company.

• Product development capabilities.

• Growing demand for sustainable packaging solutions.

 

IPO’s Weaknesses 

• Its main raw materials are polypropylene granules, polypropylene (LDPE), and high-density polyethylene (HDPE) of various grades. These materials account for a sizeable portion of the company's overall costs. The company is vulnerable to negative effects from changes in the price of crude oil, which can affect the cost of polymers, as well as risks related to foreign exchange fluctuations when importing polymers.

• The company's operating, investment, and financing actions have resulted in negative cash flows in previous years. A persistently negative cash flow could hinder the company's expansion.

• The company will not get any funds from the Offer for Sale part.

• The need to reduce pollution has come to light, and numerous economies-including India have thrown their support behind the campaign to outlaw plastic products. Its business may suffer materially if any of the plastic packaging goods it makes are outlawed in India or any of the markets to which it exports.

• Because its sector is labor-intensive, work stoppages, strikes, or rising employee wage demands could materially negatively impact its business operations.

 

Shree Tirupati Balajee IPO GMP Today

Shree Tirupati Balajee IPO GMP today has not started yet as of 02 September 2024.

 

 

Shree Tirupati Balajee IPO Timetable (Tentative)

The IPO open date is from September 05 to September 09, 2024, with IPO allotment on September 10, 2024, refund initiation on September 11, 2024, and listing on September 12, 2024.

 

Shree Tirupati Balajee IPO Details 

The IPO with a face value of Rs.10 per Share is set to start on September 05, 2024, close on September 09, 2024, and offers a total issue size of 20,440,000 Shares between Rs.78 to Rs.83 per Share with a Lot size of 180 Shares and will be listed at BSE and NSE.

 

Shree Tirupati Balajee IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (180 Shares) amounting to Rs.14,940, and 13 Lots (2340 Shares) amounting to Rs.194,220 respectively, while for HNI investors, the minimum Lot is 14 (2,520 Shares) amounting to Rs.209,160.

Shree Tirupati Balajee IPO Reservation

Promoters and Management of Shree Tirupati Balajee  Ltd. 

• Binod Kumar Agarwal.

 

Shree Tirupati Balajee IPO Lead Managers

• Pnb Investment Services Ltd.

• Unistone Capital Pvt Ltd.

 

Dividend Policy

The company has no formal dividend policy.

 

Conclusion

The company has experienced negative cash flow in operating, investing, and financing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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