Shree Tirupati Balajee Agro Trading Company Limited is coming up with an IPO worth INR 169.65 crores, consisting of a fresh issue of 1.48 crore shares worth INR 122.43 crores and an offer to sell 0.57 crore shares worth INR 47.23 crores. The company aims to repay debt, invest in subsidiaries, fund working capital, and cover corporate expenses. 

Shree Tirupati Balajee IPO – Important Dates 

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Shree Tirupati Balajee Agro Trading Company Limited IPO – Company Profile 

Shree Tirupati Balajee Agro Trading Company Limited manufactures and sells FIBCs and industrial packaging products. It caters to diverse industries with a wide product range, global presence, multi-location facilities, and focus on environmental sustainability and recycling. 

Their products are customized to customer preferences and undergo multiple quality checks and rigorous testing, including tensile, UV, surface resistibility, rig, and drop tests, ensuring safety, durability, and environmental sustainability before client delivery. 

Their in-house R&D team drives innovation with one granted and two pending patents. They focus on sustainability through plastic recycling and a 2 MW solar power plant, significantly reducing production costs via renewable energy for captive use. 

Shree Tirupati Balajee IPO Fundamental Analysis 

Shree Tirupati Balajee Agro Trading Company Limited’s financial analysis reveals a mixed performance. Revenue has consistently increased, alongside rising profitability and EPS, while equity growth is balanced by higher debt reliance and weakening liquidity. 

1. Revenue Trend: The revenue increased from ₹44,418.05 lakh in March 2022 to ₹47,543.33 lakh in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 53,966.08 lakh. 

2. Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 

3. Profitability: The profit after tax (PAT) has increased from ₹1,365.90 lakh in March 2022 to ₹3,607.27 lakh by March 2024. The rise in profitability could be a source of confidence for investors. 

4. Earnings per Share (EPS): The diluted EPS has also increased from ₹2.31 in March 2022 to ₹5.74  by March 2024, reflecting higher earnings per share for investors. 

5. Return on Net Worth (RoNW): The RoNW has risen from 14.81% to 20.84%, indicating an increase in the company’s ability to generate returns on shareholder equity. 

6. Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 

Shree Tirupati Balajee Agro Trading IPO Financial Analysis

Shree Tirupati Balajee Agro Trading Company Limited IPO Peer Comparison 

Shree Tirupati Balajee Agro Trading Company Limited shows strong returns on equity and earnings per share, outperforming competitors like Commercial Syn Bags, Emmbi Industries, and Rishi Techtex despite varying profitability and debt levels among them. 

Shree Tirupati Balajee IPO Objective 

The main objective of Shree Tirupati Balajee Agro Trading Company Limited is to repay outstanding borrowings, fund working capital needs, and invest in its subsidiaries HPPL, STBFL, and JPPL for similar purposes. 

1. Repayment/prepayment, in part or whole, of certain of the borrowings availed by their company: The company intends to utilize INR 31.45 crores from the Net Proceeds to prepay or repay outstanding borrowings, reduce debt servicing costs, and improve its debt-equity ratio for future growth and expansion. 

2. Investment in subsidiaries HPPL, STBFL, and JPPL for Repayment and/or prepayment, in part or full, of certain outstanding borrowings availed: The company plans to utilize INR 20.82 crores from the Net Proceeds to prepay or repay borrowings of its subsidiaries HPPL, STBFL, and JPPL, aiming to reduce debt, improve the debt-equity ratio, and support business growth. 

3. Funding incremental working capital requirements of their company: The company aims to utilize INR 1930 crores in working capital facilities. The sanctioned limits are fully allocated, highlighting the significant capital needs required to support ongoing business operations and industry demands. 

4. Investment in their subsidiaries HPPL, STBFL, and JPPL to fund working capital requirements: The company plans to allocate INR 24.24 crores from Net Proceeds for long-term working capital needs, with INR 10.74 crores designated for subsidiaries to support market expansion, raw material supply, and customer relations. 

5. General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including servicing repayment obligations for future financing arrangements, supporting strategic initiatives, and covering any other needs that arise. 

Shree Tirupati Balajee Agro Trading IPO Risks And Challenges 

Shree Tirupati Balajee Agro Trading Company Limited’s risks include operating five facilities in Pithampur, which concentrates risk, facing potential environmental regulations affecting plastic products, and the company name suggesting agriculture while focusing on industrial packaging. 

• Their company and subsidiaries operate five manufacturing facilities exclusively in Pithampur, Madhya Pradesh, concentrating risk. Any significant issues such as local unrest, natural disasters, or regulatory challenges in this region could adversely affect their business and finances. 

• They manufacture and sell plastic-based FIBCs and other packaging products. With growing environmental concerns and regulatory restrictions on plastics, future regulations could impact their business. To mitigate environmental effects, they focus on recycling and reusing plastics. 

• Despite their company’s name suggesting agricultural involvement, they focus on manufacturing and selling Flexible Intermediate Bulk Containers (FIBCs) and industrial packaging products. Investors should note this discrepancy and understand their core operations in packaging, not agriculture. 

Shree Tirupati Balajee IPO – Industry & Market Potential 

The global FIBC market, valued at USD 4,856 million in 2023, is projected to grow to USD 5,117 million in 2024. Growth is driven by demand from various industries and advancements in packaging technology despite challenges from COVID-19 disruptions. 

The FIBC industry’s installed capacity grew 3.4% year-on-year in 2023, reaching 212.5 million units by 2024. Growth is fueled by demand from chemicals, construction, and food sectors, alongside rising exports and innovations. 

The Indian FIBC market, valued at USD 926 million in 2023, is expected to reach 151.1 million units by 2024. Growth is driven by food, chemicals, and construction sectors, with increasing demand for food-grade FIBCs and rising e-commerce. 

Shree Tirupati Balajee Agro Trading Company Limited IPO – Type of Offer 

Shree Tirupati Balajee Agro Trading Company Limited plans a fresh issue of shares, seeking INR 122.43 crores to fund working capital requirements and general corporate needs. Additionally, the company proposes an offer for sale, intending to sell 0.57 crore existing shares. 

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 122.43 crores. The company intends to utilize the proceeds from the fresh issue to repay debt, invest in subsidiaries, fund working capital, and cover corporate expenses. 
2. Offer for sale: Shree Tirupati Balajee Agro Trading Company Limited is offering to sell 0.57 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:

Shree Tirupati Balajee Agro Trading IPO Offer Size 

The offer size of Shree Tirupati Balajee Agro Trading Company Limited is INR 169.65 crores, consisting of a fresh issue of 1.48 crore shares worth INR 122.43 crores and an offer to sell 0.57 crore shares worth INR 47.23 crores. The company seeks funds to repay debt, invest in subsidiaries, fund working capital, and cover corporate expenses. 

Shree Tirupati Balajee Agro Trading Company Limited IPO Allotment Structure 

Shree Tirupati Balajee Agro Trading Company Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

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How to apply for Shree Tirupati Balajee Agro Trading Company IPO?

To apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Shree Tirupati Balajee Agro Trading Company Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Shree Tirupati Balajee Agro Trading Company Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

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How do you check Shree Tirupati Balajee Agro Trading Company IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Shree Tirupati Balajee Agro Trading Company Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Shree Tirupati Balajee Agro Trading Company Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Shree Tirupati Balajee Agro Trading Company Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Shree Tirupati Balajee Agro Trading Company Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

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Shree Tirupati Balajee Agro Trading Company Ltd IPO Offer Registrar

The registrar for the Shree Tirupati Balajee Agro Trading Company Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly. 

Contact information for the registrar: 

LINK INTIME INDIA PRIVATE LIMITED

C- 101, 1st Floor, 247 Park, L.B.S Marg, 

Vikhroli (West), Mumbai – 400083,

Maharashtra, India

Telephone: +91 810 811 4949, 

Email: [email protected] 

Website: www.linkintime.co.in 

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Shree Tirupati Balajee Agro Trading Company IPO – FAQs