In an anticipated stock market debut, Shree Tirupati Balajee Agro Trading Company Ltd. saw its shares open at Rs 92.90 today, marking a 12% premium over the issue price of Rs 83 per share on the Bombay Stock Exchange. This initial gain, however, fell short of grey market predictions where the shares had been trading at a premium of approximately 33%.
The company’s public offer, valued at Rs 169.65 crore, included both a fresh issue and an Offer For Sale. It was met with significant interest, being subscribed 124.74 times overall. Retail investors accounted for 73.22 times of the subscription, while Qualified Institutional Buyers (QIBs) subscribed 150.87 times and Non-Institutional Investors (NIIs) 210.12 times.
Prior to the public offering, Shree Tirupati Balajee Agro Trading had raised Rs 50.9 crore from institutional investors through an anchor book on September 4. Notable investors included NAV Capital Emerging Star Fund, Chanakya Opportunities Fund I, and Next Orbit Growth Fund III, each contributing Rs 10 crore to the Madhya Pradesh-based company.
Established in 2001, the company specializes in the manufacture and marketing of Flexible Intermediate Bulk Containers (FIBCs) and other industrial packaging products such as woven sacks, woven fabric, narrow fabric, and tapes. Its products cater to diverse industries including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil.
The proceeds from the fresh issue are intended for several purposes: repaying or prepaying existing borrowings, investing in subsidiaries—HPPL, STBFL, and JPPL—for similar repayment or prepayment of borrowings, and meeting working capital requirements. Additionally, funds will be allocated for incremental working capital needs and general corporate purposes.