Shree Tirupati Balajee Agro Trading Company Limited’s IPO is set to open on September 5, 2024 and will close on September 9, 2024. Founded in October 2001, the company specializes in the manufacturing and sale of Flexible Intermediate Bulk Containers (FIBCs) and other industrial packaging products such as woven sacks, woven fabric, narrow fabric, and tapes, serving both the domestic and international markets.
The company provides packaging solutions for various industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil, and operates through subsidiaries like Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL), managing production across five manufacturing units.
Issue size
| Funds to be Raised in the IPO | Amount |
|---|---|
| Overall | ₹169.65 crores |
| Fresh Issue | ₹122.43 crores |
| Offer for sale | ₹47.23 crores |
The utilisation of proceeds:
| Purpose | INR crores (%) |
|---|---|
| Repayment of outstanding borrowings by the company | 31.45 (18.54%) |
| Subsidiary Borrowing Repayment | 20.82 (12.27%) |
| Fund incremental working capital requirements | 13.50 (7.95%) |
| Subsidiary Working Capital | 10.74 (6.33%) |
| General Corporate Purposes | 86.14 (50.77%) |
| Total Net Proceeds | 169.95 (100.00%) |
Financial Snapshot
| Financial Year Ended | March 2022 | March 2023 | March 2024 |
|---|---|---|---|
| Total Assets | 391.89 | 392.46 | 516.94 |
| Revenue | 453.79 | 478.14 | 552.82 |
| Profit After Tax | 13.66 | 20.72 | 36.07 |
*All figures are in ₹ Crores.
Strengths
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Maintains long-term relationships across industries with customized FIBC solutions (Flexible Intermediate Bulk Containers).
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Provides lightweight, cost-effective FIBCs (large, flexible bags for storing and transporting dry, flowable products), widely adopted for reduced transportation costs.
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Offers a comprehensive range of FIBC bags for various industries.
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Operates five strategically located, modern manufacturing units.
Risk factors
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Concentration of Manufacturing Facilities: All manufacturing units are located in Pithampur, Madhya Pradesh, which could face significant risks from localized disruptions.
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Regulatory Risks on Plastic Products: Potential bans on plastic packaging, given the increasing environmental concerns, could significantly impact the company’s operations and financials.
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Volatility in Raw Material Prices: Fluctuations in crude oil prices and supply chain issues may lead to increased operational costs and affect profitability.
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Unsecured Loans Repayable on Demand: The company has unsecured loans that can be recalled by lenders at any time, potentially straining cash flows and impacting financial stability if immediate repayment is required.
IPO Schedule
| Issue Period | 05 September to 09 September 2024 |
|---|---|
| Price band | ₹ 78 - 83 |
| Minimum Bid quantity | 180 shares |
| UPI Mandate Deadline | 5 PM, 09 September 2024 |
| Allotment Finalization | 10 September 2024 |
| Refund Initiation | 11 September 2024 |
| Share Credit | 11 September 2024 |
| Listing Date | 12 September 2024 |
| Mandate end date | 24 September 2024 |
| Lock-In End Date for Anchor Investors (50%) | 10 October 2024 |
| Lock-In End Date for Anchor Investors (Remaining) | 09 December 2024 |
Note:
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The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
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The allotment status will be available by September 10, 2024, on the Registrar’s website and the NSE website.