Shree Tirupati Balajee Agro Trading Revives IPO Plans with Fresh DRHP Filing

26 Mar 2024 , 01:12 PM

Shree Tirupati Balajee Agro Trading Company has resubmitted its draft red herring prospectus to the market regulator Sebi, nearly three months after its initial filing for an initial share sale. The public issue is set to include 2.04 Crore shares, consisting of 1.47 Crore fresh shares and an offer-for-sale (OFS) of 56.9 lakh shares by promoter Binod Kumar Agarwal, as detailed in the March 20 draft IPO documents.

Previously, the Madhya Pradesh-based company had filed preliminary papers for an IPO of 1.67 Crore equity shares on December 28 last year, which was later withdrawn.

With promoter Binod Kumar Agarwal holding an 88.38% stake in the company, the remaining shares are held by public shareholders such as Sachin Mohanlal Kakrecha and Ample Vyapaar. Shree Tirupati Balajee Agro Trading Company specializes in manufacturing flexible intermediate bulk containers (FIBCs), large flexible bags, and other industrial packaging products like woven sacks, woven fabric, and narrow fabric.

Upon successful completion of the IPO, the company plans to allocate ₹57.3 Crore from the net fresh issue proceeds towards debt repayment, ₹24.24 Crore for working capital requirements, and the remaining funds for general corporate purposes. This differs slightly from the previous prospectus, which had earmarked ₹61.89 Crore for debt repayment.

In terms of financial performance, the company reported a consolidated net profit of ₹20.7 Crore for the fiscal year ended March FY23, marking a significant increase of 51.4% compared to the previous year. Revenue from operations also saw a healthy growth of 7% during the same period, amounting to ₹475.4 Crore. Additionally, the EBITDA surged by 55.5% year-on-year to ₹48 Crore, with a corresponding margin expansion of 314 basis points to 10.1% for FY23. The net profit for the six-month period ended September FY24 stood at ₹20.25 Crore on revenue of ₹200.8 Crore.

PNB Investment Services and Unistone Capital have been appointed as the book-running lead managers to oversee the IPO process, with Link Intime India serving as the registrar.