Shree Tirupati Balajee IPO: A Remarkable Market Debut
The shares of Shree Tirupati Balaji, a leading provider of packaging services, made an impressive entrance into the Indian stock market today. With the Initial Public Offering (IPO) garnering overwhelming interest from investors, it was oversubscribed over 124 times. The shares were initially offered at a price of Rs 83, and upon listing, they opened at Rs 92.90 on the Bombay Stock Exchange (BSE) and Rs 90.00 on the National Stock Exchange (NSE). This enthusiastic reception resulted in a notable listing gain of approximately 11.93% for IPO investors. Following this initial surge, the stock continued to climb, hitting the upper circuit at Rs 97.54 on BSE, which translates to a substantial profit of around 17.52% for those who invested in the IPO.
Strong Investor Response
The IPO, valued at ₹169.65 crore, was available for subscription from September 5 to September 9. The enthusiastic response from the market was evident, with the IPO being oversubscribed by a remarkable 124.74 times. The breakdown of subscriptions was particularly impressive: the portion reserved for qualified institutional buyers (QIB) was fully subscribed 150.87 times, while non-institutional investors (NII) participated at a staggering rate of 210.12 times. Retail investors also showed strong interest, with their portion being filled 73.22 times.
IPO Details and Fund Utilization
As part of this IPO, new shares worth Rs 122.43 crore were issued, alongside an offer for sale that included 56.90 lakh shares with a face value of Rs 10. The funds raised through the offer for sale will benefit the selling shareholders, while the proceeds from new shares will be allocated for various purposes, including:
- Repaying existing debts
- Investing in subsidiaries to strengthen their financial health
- Meeting increased working capital requirements
- General corporate purposes
About Shree Tirupati Balajee Agro Trading Company
Founded in October 2001, Shree Tirupati Balaji Agro Trading Company specializes in manufacturing flexible intermediate bulk containers (FIBCs), large flexible bags, and woven fabrics and tapes. Its products cater to a global market, serving various industries including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oils. The company operates through three subsidiaries:
- Honorable Packaging Private Limited
- Sri Tirupati Balaji FIBC Limited
- Jagannatha Plastics Private Limited
With a robust infrastructure supported by five manufacturing units, the company is well-positioned to meet the growing demands of its diverse client base.
Financial Performance
Shree Tirupati Balaji has demonstrated substantial financial growth over recent years. In the fiscal year 2022, the company reported a net profit of Rs 13.66 crore, which climbed to Rs 20.72 crore in fiscal year 2023, and further surged to Rs 36.07 crore in fiscal year 2024. During this period, the company’s revenue experienced a compound annual growth rate (CAGR) exceeding 10%, reaching Rs 552.82 crore. Such financial resilience showcases the company’s strong market position and growth potential.
Conclusion
The successful listing of Shree Tirupati Balajee not only reflects investor confidence in the company but also indicates the growing interest in the packaging sector. With a solid financial foundation and strategic plans for growth, the company is set to capitalize on emerging opportunities in the market.
