A Detailed Overview
The Shree Tirupati Balajee IPO, a book-built issue aiming to raise Rs 169.65 crore, opened for subscription on September 5, 2024, and closed on September 9, 2024. The price band for the IPO was set between Rs 78 and Rs 83 per share, with a minimum lot size of 180 shares.
The IPO comprised a fresh issue of 14.8 million shares worth Rs 122.43 crores and an offer for sale of 5.7 million shares valued at Rs 47.23 crores. The allotment for the IPO was finalized on September 10, 2024, and the shares were listed on the BSE and NSE on September 12, 2024.
PNB Investment Services Ltd and Unistone Capital Pvt Ltd served as the book-running lead managers for the IPO, while Link Intime India Private Ltd was the registrar for the issue.
Several brokerage firms recommended subscribing to the IPO, citing the company's strong financial health, market leadership, and attractive valuation. The market for FIBCs (Flexible Intermediate Bulk Containers) is experiencing significant growth, driven by robust domestic demand across sectors such as chemicals, food products, construction materials, and agriculture. This growth is further supported by favorable government initiatives like Make-in-India, which boost manufacturing and international trade.
The current issue was priced at a pierce-to-earnings (P/E) ratio of 14.5x on the upper end of the price band, based on FY24 earnings, which is in line with industry peers.
Considering the promising growth trajectory of the industry and the company's strategic initiatives in capacity optimization, new product development, and expansion both domestically and internationally, most brokerages suggest subscribing to the IPO for a long-term investment perspective.