Shree Tirupati Balajee IPO Day 2: Subscription status, GMP, Should you bid?

Shree Tirupati Balajee IPO Day 2: Shree Tirupati Balajee IPO has seen a robust demand, with the issue being subscribed 9.4 times on Day 2 by 11:10 AM.

Retail investors have shown major interest, subscribing at 12.48 times, while Non-institutional investors (NIIs) have subscribed at 8.98 times. Qualified institutional buyers (QIBs), meanwhile, have subscribed 4.46 times. On Day 1, Shree Tirupati Balajee IPO was subscribed 6.36 times. 

Prior to the public subscription period, Shree Tirupati Balajee IPO raised over Rs 50.90 crore from anchor investors.

The company plans to use the funds raised from the IPO for several key purposes including repaying or prepaying, either in part or in full, certain outstanding borrowings; investing in its subsidiaries HPPL, STBFL, and JPPL to support their repayment or prepayment of borrowings; funding incremental working capital needs; and covering general corporate expenses.

Shree Tirupati Balajee IPO GMP today

Shree Tirupati Balajee IPO grey market premium (GMP) is Rs 35, indicating a listing gain of 42 per cent over the upper band of the issue price.

Shree Tirupati Balajee IPO details

The Shree Tirupati Balajee IPO is a book-built issue aiming to raise Rs 169.65 crore. It includes 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 IPO opened for subscription on September 5, 2024 and will close on September 9, 2024. The price band for the IPO is set between Rs 78 and Rs 83 per share. 

Furthermore, investors can apply in minimum lot sizes of 180 shares. For retail investors, the minimum investment amount is Rs 14,940. Small and Medium Institutional Investors (sNII) need to apply for at least 14 lots (2,520 shares), totaling Rs 209,160, while Big Institutional Investors (bNII) must apply for a minimum of 67 lots (12,060 shares), amounting to Rs 1,000,980.

Shree Tirupati Balajee  IPO allotment, listing date

The allotment for the Shree Tirupati Balajee IPO is anticipated to be finalised on Tuesday, September 10, 2024. 

The shares are expected to be listed on the BSE and NSE with a tentative listing date set for Thursday, September 12, 2024. 

PNB Investment Services Ltd and Unistone Capital Pvt Ltd are serving as the book-running lead managers for the IPO, while Link Intime India Private Ltd is the registrar for the issue.

Should you subscribe?

Several brokerage firms, including Choice India, Ventura, BP Equities, Swastika, Stoxbox, and Canara Bank Securities Ltd, have recommended subscribing to the IPO. 

This view is based on the company’s strong financial health, market leadership, and attractive valuation. 

The market for FIBCs (Flexible Intermediate Bulk Containers) is witnessing considerable growth, driven by robust domestic demand across sectors such as chemicals, food products, construction materials, and agriculture. This growth is further supported by favourable government initiatives like Make-in-India, which boost manufacturing and international trade.

The current issue is 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 optimisation, new product development, and expansion both domestically and internationally, most brokerages suggest subscribing to the IPO for a long-term investment perspective.