Shree Tirupati Balajee Agro Trading Co. Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹83
Per ShareLot Size
180 Shares
Minimum Investment
₹14,940
Issue Size
₹169.65 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Shree Tirupati Balajee Agro Trading Co. Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
88.38%
Issue Type
Book Building
ISIN
INE0S2G01011
About the Company
Shree Tirupati Balajee Agro Trading Company Limited is engaged in the business of manufacturing and selling of Flexible Intermediate Bulk Containers (FIBCs) i.e. large flexible bags and other industrial packaging products such as woven sacks, woven fabric and narrow fabric, tapes in the Indian domestic market and overseas. The Company offers customised products and cater to the bulk packaging solutions of its clients from diverse industries like chemicals, agrochemicals, food mining, waste disposal industry, agriculture industry, lubricants and edible oil by supplying them its FIBC products for transportation purposes and their packaging requirement. The Company provides a labor-saving alternative for packaging and transportation, making loading and unloading of vessels, containers, or trucks more efficient.
Industry Overview
The FIBC market in India has grown by almost 38% in the last 10 years. The installed capacity of the FIBC Industry grew by around 3.3% y-o-y (year-on-year) in 2022. It reaches around 205.5 million units by the end of 2023. The production of the FIBC industry declined by around 3.3% y-o-y in 2022 but increased by 8% y-o-y in 2023. The FIBC market was valued at 926 USD million in 2023 and has grow at a CAGR of 6.7% during the period, 2020-2023. FIBCs offer a convenient way to store and transport food products. This is because they are lightweight, easy to handle, and can be stacked to save space. India is a major exporter of food products. Foodgrade FIBCs are used to transport food products to overseas markets. Moreover, the FIBC industry's consumption is likely to reach 69 million units at the end of the 2024. It has been growing at a CAGR of 5% during 2020-2023, owing to the increasing consumption from the chemicals & petrochemicals, food & agriculture, construction & mining sectors. This expansion can be majorly attributed to expanding businesses such as food and agriculture, medicinal products, and chemicals and fertilizers. The global FIBC consumption market was valued at USD 4,647 million in 2022. The global FIBC consumption market was valued at USD 4,856 million in 2023. Under the global FIBC market, Type A Bulk Bags stand at 43% market share followed by Type B Bulk Bags, Type C Bulk Bags, and Type D Bulk Bags, which account for 37%, 14% and 7% respectively in 2023. The market growth is attributed to the rising need to reduce the weight of bulk packaging, the thriving food and pharmaceutical industries, and the expanding manufacturing and construction sectors in developing regions. Moreover, the FIBC market is expanding due to growing environmental concerns and the rising demand for lightweight, biodegradable bulk packaging materials, particularly in the pharmaceutical sector.
Company History
Shree Tirupati Balajee Agro Trading Company Limited was originally incorporated as `Shree Tirupati Balajee Agro Trading Company Private Limited', as a private limited company under the provisions of Companies Act, 1956, pursuant to certificate of incorporation dated October 23, 2001 issued by the Registrar of Companies, Madhya Pradesh and Chattisgarh. Upon the conversion of the Company into a public limited company, pursuant to the approval accorded by its Shareholders at their Extra-Ordinary General Meeting held on November 20, 2023, the name of the Company was changed to "Shree Tirupati Balajee Agro Trading Company Limited" and a fresh certificate of incorporation consequent upon change of name upon conversion to public limited company was issued to the Company by the RoC on November 21, 2023.
Products & Services
- The Company is engaged in the business of manufacturing and selling of Flexible Intermediate Bulk Containers (FIBCs).
Growth Strategy
- Focus on core competence.
- Multi- Location Facilities.
- Developing the new product line.
- Global and Domestic Presence.
- Continue to improve operating efficiencies through technology enhancements.
- Recycling.
Customer Base
Clients from diverse industries like chemicals, agrochemicals, food mining, waste disposal industry, agriculture industry, lubricants and edible oil.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 2,04,40,000 equity shares of face value of Rs. 10 each ("Equity Shares") of Shree Tirupati Balajee Agro Trading Company Limited ("The Company" or the "Issuer") for cash at a price of Rs. 83 per equity share (including a premium of Rs. 73 per equity share) ("Offer Price") aggregating up to Rs. 169.65 crores. The offer comprises of fresh issue of 1,47,50,000 equity shares aggregating up to Rs. 122.43 crores ("Fresh Issue") and an offer for sale of 56,90,000 equity shares by the selling shareholder aggregating Rs. 47.23 crores ("Offer for Sale") (the "Offer for Sale", and together with the fresh issue, the "Offer"). The offer constitutes 25.06 % of its post-offer paid-up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Diverse customer base.
- Cost-Effectiveness of FIBCs.
- Multi- product portfolio.
- Integrated Manufacturing Facility.
- Quality Standard Certifications & Quality Tests.
- All its manufacturing facilities are situated at Pithampur, Madhya Pradesh resulting in concentration in a single region. Any interruption for a significant period of time, in these facilities may in turn adversely affect its business, financial condition and results of operations.
- There is an increased awareness towards controlling pollution and many economies including India have joined in the efforts to ban plastic product. In case any plastic packaging products manufactured by it are banned in India or in any of the markets where the company export its products, it could have a material and adverse effect on its business and results of operations.
- The Company's name may suggest involvement in agro business, leading to misconceptions among investors.
- The Company has negative cash flows from its operating, investing and financing activities in the past years, details of which are given below. Sustained negative cash flow could impact on its growth and business.
- Increased revenue may not necessarily lead to higher margins, as they are affected by raw material costs, finance expenses, and other operational costs.