Tirupati Balajee IPO listing: Falling GMP worries investors ahead of debut

Though the grey market premium of Shree Tirupati Balajee shares has been on a continuous decline since the issue opened for subscription, it still stands at 27 per cent on Wednesday

Shree Tirupati Balajee IPO GMP: Unlisted shares of Agro Trading Company, Shree Tirupati Balajee, which are slated to make their debut on the bourses tomorrow, are commanding a decent premium, despite a dip of nearly 20 per cent from their peak, in the grey markets on Wednesday. As per several sources that track the grey market activities, Shree Tirupati Balajee shares were trading at a premium of Rs 23, which translates to a GMP of 27.71 per cent at the upper end of the issue price of Rs 83.

The grey market premium for the Shree Tirupati Balajee shares has, however, fallen significantly from Rs 40 or 48.19 per cent, recorded on September 6, when the public issue opened for subscription. Since then, the GMP has exhibited a continuous decline, as it slipped to Rs 39 on September 9,  when the Shree Tirupati Balajee IPO closed for subscription. It was reported at Rs 28 yesterday when the allotment of Shree Tirupati Balajee shares was finalised.

If Shree Tirupati Balajee shares succeed in holding the current grey market premium, they may list on the bourses at around Rs 106 (Issue price + GMP). Accordingly, the company's shares might yield a return of over 27 per cent to investors who were allotted the company's shares. The allotment of Shree Tirupati Balajee IPO shares was finalised yesterday.

Bidding for the Shree Tirupati Balajee IPO concluded on September 9, 2024, with an overwhelming response from the investors. The public issue, which was available at a price band of Rs 78-83 with a lot size of 180 shares, got a remarkably 124.74 times oversubscribed by the last date of subscription, led by the Non-institutional investors (NIIs) who bid for a whopping 210.12 times. This was followed by qualified institutional buyers (QIBs) at 150.87 times and retail investors at 73.22 times.

The IPO comprised an entirely fresh issue of 14,750,000 shares and an offer for sale of 5,690,000 shares with a face value of Rs 10.

About Shree Tirupati Balajee

Shree Tirupati Balajee is a leading agro trading company that manufactures, and sells Flexible Intermediate Bulk Containers (FIBCs), i.e., large flexible bags, and other industrial packaging products such as woven sacks, woven fabric, narrow fabric, and tapes in the domestic market as well as overseas.