Shree Tirupati Balajee IPO day 2: GMP, subscription status, review, other details. Good or bad for investors?

Shree Tirupati Balajee IPO: The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading Company Limited hit the Indian primary market on Thursday this week. The public issue will remain open for bidding until 9th September 2024, i.e. Monday next week. The bulk container maker company has fixed the Shree Tirupati Balajee IPO price band at ₹78 to ₹83 per equity share. The book build issue aims to raise ₹169.65 crore from this initial offer, a mix of fresh shares and offer for sale (OFS). The public offer raised ₹50.89 crores from anchor investors ahead of its initial public offering on Thursday, September 5.

Meanwhile, on Shree Tirupati Balajee's IPO subscription opening date, Shree Tirupati Balajee's Agro Trading Company Limited shares are trading at a substantial premium in the grey market today. According to stock market observers, Shree Tirupati Balajee Agro Trading Company Limited shares are available at a premium of ₹26 per equity share in the grey market today.

Shree Tirupati Balajee IPO subscription status

By 3:36 PM on day two of bidding, the public issue had been subscribed 15.33 times, the retail portion 19.27 times, the NII segment 20.56 times, and the QIB portion of the initial offer 4.53 times. 

Important Shree Tirupati Balajee IPO details

1] Shree Tirupati Balajee IPO GMP: According to market observers, the company's shares are available at a premium of ₹26 per equity share in the grey market today.

2] Shree Tirupati Balajee IPO date: The public issue opened on 5th September 2024 and will remain open until September 9, 2024.

3] Shree Tirupati Balajee IPO price: The container maker company has fixed Shree Tirupati Balajee IPO price at ₹78 to ₹83 per equity share.

4] Shree Tirupati Balajee IPO allotment date: The most likely date for share allotment is 10th September 2024.

5] Shree Tirupati Balajee IPO registrar: Link Intime India Private Limited has been appointed as the official registrar of the book build issue.

6] Shree Tirupati Balajee IPO size: The bulk container company aims to raise ₹169.65 crore from this initial offer. Of this, ₹122.43 crore is aimed at issuing fresh shares, while the rest, ₹47.23 crore, is reserved for the OFS route.

7] Shree Tirupati Balajee IPO lot size: Bidders can apply in lots; one lot comprises 180 company shares.

8] Shree Tirupati Balajee IPO lead managers: PNB Investment Services Ltd and Unistone Capital Private Ltd have been appointed Lead Managers of the public issue.

9] Shree Tirupati Balajee IPO listing date: The public issue is proposed for listing on BSE and NSE, and the most likely date for share listing is 12 September 2024.

Shree Tirupati Balajee IPO: Good or bad?

10] Shree Tirupati Balajee IPO review: When asked whether Shree Tirupati Balajee's IPO is good or bad for Indian primary market investors, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "The issue is priced slightly higher, but the primary market is overcrowded, and the secondary market is on an uptrend. So, investors can apply for the public issue for listing gain."

Giving a ‘subscribe’ tag for medium to long-term, Master Capital Services said, "Growing demand over the years, especially from the chemicals, construction, and food agriculture sectors, has helped the FIBC sector reach healthy capacity utilization levels, resulting in players going for capacity expansion. Further, the FIBC industry grew at a CAGR of 1.8% during 2020-2023, owing to continuous innovations and process improvement across the value chain and steady traction due to continuous improvement in product quality. The company plans to take advantage of this situation by focusing on its core competencies and maximizing its capacity. The company also intends to develop a new product line following the market trends, using its vast product portfolio, and enhancing its technological capabilities to create a Global and Domestic presence. Investors can invest in the IPO for the medium to long term."

Assigning a 'subscribe' tag to the public issue, Akriti Mehrotra, Research Analyst at Stoxbox, said, “The FIBC market is set for significant expansion, fueled by growing demand across various sectors and the surging e-commerce industry. Since their introduction in India in the early 1990s, FIBCs have evolved into a major export commodity, with Indian production now reaching nearly 65 countries. This growth is driven by robust domestic demand in industries such as chemicals, food products, construction materials, and agriculture, coupled with favourable government policies like Make-in-India, which promote manufacturing and international trade. Shree Tirupati Balajee Agro Trading Co. Ltd. has emerged as a leading FIBC and industrial packaging player, leveraging substantial market demand and a global presence.”

"Despite facing challenges such as regulatory changes affecting plastic use, fluctuations in raw material supply, and regional concentration of manufacturing, the company has demonstrated consistent financial growth. It reported a revenue CAGR of 10.2%, increasing from ₹4,442 million in FY22 to ₹5,397 million in FY24. EBITDA margins improved from 7% to 11%, and PAT rose from Rs. 137 million to ₹361 million. With a current P/E ratio of 14.5x on the upper price band based on FY24 earnings, we recommend a "SUBSCRIBE" rating for the issue with a medium to long-term investment perspective," the StoxBox expert said.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.