Shree Tirupati Balajee Sets Market Debut Stage, Files DRHP with SEBI

3 Jan 2024 , 11:04 AM

Madhya Pradesh-based Shree Tirupati Balajee Agro Trading Company has set its sights on fundraising through an initial public offering (IPO) and has submitted draft papers to the capital markets regulator SEBI on December 28, as disclosed in documents published on January 2.

The IPO encompasses a fresh issue of 1,30,65,000 equity shares by the company, along with an offer-for-sale (OFS) of 36,45,000 equity shares by promoter Binod Kumar Agarwal.

Acting as the holding company for Shree Tirupati Balajee FIBC, listed on the NSE Emerge, as well as Jagannath Plastics and Honourable Packaging, promoter Binod Kumar Agarwal holds a 88.38 percent shareholding in the company, while the remaining 11.6 percent shares are held by the public, including Jitendra Rasiklal Sang and Ample Vyapaar.

With manufacturing units located in Pithampur, Madhya Pradesh, the flexible intermediate bulk container (FIBC) jumbo bags manufacturer intends to utilize the net fresh issue proceeds for repaying debts incurred by itself and its subsidiaries (Honourable Packaging, Shree Tirupati Balajee FIBC, and Jagannath Plastics), amounting to Rs 61.89 crore. Additionally, Rs 24.24 crore will be allocated for working capital requirements, while the remaining funds will be earmarked for general corporate purposes.

As of September 2023, the total borrowings on its books stood at Rs 224.2 crore on a consolidated basis.

The FIBC produced by the company is designed to handle loads ranging from 500 kg to 2,500 kg and finds applications across various industries, including construction, agriculture, industrial products, chemicals, fertilizers, cement, mining, animal feed, and processed food. Shree Tirupati Balajee Agro Trading Company also exports its FIBC and woven products to over 38 countries, including Australia, New Zealand, USA, Canada, Chile, Sweden, France, UK, Germany, Spain, Malaysia, and Singapore.

For the financial year ended March FY23, the company reported a net profit of Rs 20.7 crore, a substantial increase from Rs 13.7 crore in the previous year. During the same period, revenue from operations rose from Rs 444.2 crore to Rs 475.4 crore. For the six-month period ending September FY24, the net profit stood at Rs 20.25 crore on revenue of Rs 200.76 crore.

PNB Investment Services and Unistone Capital have been appointed as the book running lead managers for the public issue.