Shree Tirupati Balajee Agro Trading Company Files IPO Papers with SEBI, Aims to Raise Funds

Shree Tirupati Balajee Agro Trading Company, a Madhya Pradesh-based manufacturer of flexible intermediate bulk containers (FIBC) jumbo bags, has taken a significant step towards raising funds through an initial public offering (IPO). The company recently filed draft papers with the capital markets regulator SEBI on December 28, as revealed by official documents published on January 2.

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

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Shree Tirupati Balajee Agro Trading Company serves as the holding company for Shree Tirupati Balajee FIBC, listed on the NSE Emerge, and also holds stakes in Jagannath Plastics and Honourable Packaging.

Promoter Binod Kumar Agarwal currently holds an 88.38 percent shareholding in the company, while the remaining 11.6 percent of shares are held by the public, including investors like Jitendra Rasiklal Sang and Ample Vyapaar.

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The company operates manufacturing units in Pithampur, Madhya Pradesh, specializing in the production of flexible intermediate bulk containers (FIBC) designed to handle loads ranging from 500 kg to 2,500 kg. These bags find applications in diverse industries, including construction, agriculture, industrial products, chemicals, fertilizers, cement, mining, animal feed, and processed food.

Proceeds from the net fresh issue are intended to be primarily allocated towards repaying debts of the company and its subsidiaries, including Honourable Packaging, Shree Tirupati Balajee FIBC, and Jagannath Plastics, amounting to Rs 61.89 crore. An additional Rs 24.24 crore is earmarked for working capital requirements, with the remaining funds allocated for general corporate purposes.

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As of September 2023, the consolidated borrowings on the company’s books stood at Rs 224.2 crore.

Shree Tirupati Balajee Agro Trading Company has a global presence, exporting its FIBC and woven products to over 38 countries, including Australia, New Zealand, the USA, Canada, Chile, Sweden, France, the UK, Germany, Spain, Malaysia, and Singapore.

In terms of financial performance, the company reported a net profit of Rs 20.7 crore for the financial year ending March FY23, marking a significant increase from Rs 13.7 crore in the previous year. During the same period, revenue from operations increased from Rs 444.2 crore to Rs 475.4 crore. For the six-month period ending September FY24, the company reported a net profit of Rs 20.25 crore on revenue of Rs 200.76 crore.

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PNB Investment Services and Unistone Capital have been appointed as the book running lead managers to oversee the public issue, further indicating the company’s commitment to a successful IPO. Investors and market participants will be eagerly awaiting more details as the IPO process unfolds, offering an opportunity to invest in Shree Tirupati Balajee Agro Trading Company’s growth story.

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