Shree Tirupati Balajee IPO is a book-built issue valued at ₹169.65 crores. The issue comprises a fresh issue of 1.48 crore shares, raising ₹122.43 crores, and an offer for sale of 0.57 crore shares, totaling ₹47.23 crores.
The IPO opens for subscription on September 5, 2024, and closes on September 9, 2024. The allotment is expected to be finalized on Tuesday, September 10, 2024, and the IPO is set to list on BSE and NSE, with a tentative listing date of Thursday, September 12, 2024.
The IPO price band is set between ₹78 and ₹83 per share, with a minimum application lot size of 180 shares. Retail investors need to invest at least ₹14,940. For sNII, the minimum investment is 14 lots (2,520 shares), amounting to ₹209,160, and for bNII, it’s 67 lots (12,060 shares), totaling ₹1,000,980.
Pnb Investment Services Ltd and Unistone Capital Pvt Ltd are the book-running lead managers, while Link Intime India Private Ltd serves as the registrar for the issue.
Below are the details of Shree Tirupati Balajee Agro Trading Company Limited IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
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Shree Tirupati Balajee Agro Trading Details
| IPO Date | September 5, 2024 to September 9, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹78 to ₹83 per share |
| Lot Size | 180 Shares |
| Total Issue Size | 20,440,000 shares (aggregating up to ₹169.65 Cr) |
| Fresh Issue | 14,750,000 shares (aggregating up to ₹122.43 Cr) |
| Offer for Sale | 5,690,000 shares of ₹10 (aggregating up to ₹47.23 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 66,820,852 |
| Share holding post issue | 81,570,852 |
Shree Tirupati Balajee Agro Trading Timeline
| IPO Open Date | Thursday, September 5, 2024 |
| IPO Close Date | Monday, September 9, 2024 |
| Basis of Allotment | Tuesday, September 10, 2024 |
| Initiation of Refunds | Wednesday, September 11, 2024 |
| Credit of Shares to Demat | Wednesday, September 11, 2024 |
| Listing Date | Thursday, September 12, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 9, 2024 |
Shree Tirupati Balajee Agro Trading Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 180 | ₹14,940 |
| Retail (Max) | 13 | 2340 | ₹194,220 |
| S-HNI (Min) | 14 | 2,520 | ₹209,160 |
| S-HNI (Max) | 66 | 11,880 | ₹986,040 |
| B-HNI (Min) | 67 | 12,060 | ₹1,000,980 |
Shree Tirupati Balajee Agro Trading Reservation
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 61,32,000 (30%) | NA |
| QIB Shares Offered | 40,88,000 (20%) | NA |
| NII (HNI) Shares Offered | 30,66,000 (15%) | |
| bNII > ₹10L | 20,44,000 (10%) | 811 |
| sNII < ₹10L | 10,22,000 (5%) | 405 |
| Retail Shares Offered | 71,54,000 (35%) | 39,744 |
| Total Shares Offered | 2,04,40,000 (100%) |
Shree Tirupati Balajee Agro Trading Promoter Holding
The promoter of the company is Binod Kumar Agarwal.
| Share Holding Pre Issue | 88.38% |
| Share Holding Post Issue | 65.42% |
Shree Tirupati Balajee Agro Trading Anchor Investors
| Bid Date | September 4, 2024 |
| Shares Offered | 6,132,000 |
| Anchor Portion Size (In Cr.) | 50.90 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 10, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 9, 2024 |
Shree Tirupati Balajee Agro Trading Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 516.94 | 392.46 | 391.89 | |||||||||||||||||||||||||||
| Revenue | 552.82 | 478.14 | 453.79 | |||||||||||||||||||||||||||
| Profit After Tax | 36.07 | 20.72 | 13.66 | |||||||||||||||||||||||||||
| Net Worth | 173.07 | 110.21 | 92.23 | |||||||||||||||||||||||||||
| Reserves and Surplus | 106.24 | 109.05 | ||||||||||||||||||||||||||||
| Total Borrowing | 243.69 | 223.81 | 240.06 | |||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||
Shree Tirupati Balajee Agro Trading Review
The IPO has garnered significant attention, and it’s crucial to analyze its financials and strategic positioning.
Financially, the company has shown strong revenue growth, but its reliance on external funding and high working capital requirements raise concerns. Although it reported a return on equity (ROE) of 21% in FY24, its cash flow has been negative in two of the past three years. The company also faces a high debt-to-equity ratio of 1.4, indicating substantial leverage. Additionally, a significant portion of the IPO proceeds is allocated to repaying debt, further highlighting its financial strain.
From a valuation perspective, the IPO price-to-earnings (P/E) ratio is competitive compared to peers, but its price-to-book ratio is on the higher side, which may deter value-focused investors. The company’s contingent liabilities are also a factor to consider, as they represent 55% of its equity.
Despite these financial challenges, the IPO has potential, especially for those willing to accept higher risk. However, it’s essential to consider other qualitative factors, such as market sentiment and competitive advantage, before making an investment decision.