Shree Tirupati Balajee makes decent debut on bourses; list at 12% premium

IPO listing today: Shree Tirupati Balajee shares listed at Rs 92.90, a premium of 11.92 per cent on BSE, against the issue price of Rs 83

Shree Tirupati Balajee IPO listing today: Shares of Agro Trading Company, Shree Tirupati Balajee, made a decent debut on the bourses on Thursday. Shree Tirupati Balajee shares listed at Rs 92.90, a premium of 11.92 per cent on BSE, against the issue price of Rs 83.

On the NSE, Shree Tirupati Balajee shares listed at Rs 90, reflecting a premium of 8.43 per cent  against the IPO issue price. With this listing, investors who allotted the company's shares made a profit of nearly Rs 10 per share.

Commenting on the listing of Shree Tirupati Balajee shares, Shivani Nyati, head of wealth at Swastika Investmart, said that while this is a positive development, it falls significantly short of expectations, given the strong pre-listing subscription of 124.7 times and the anticipation of a much higher listing gain.

 

Nyati attributed the muted response to STBA's listing to several factors, including the company's high debt-equity ratio, corporate guarantees, and negative cash flow. These concerns, coupled with the broader market sentiment and potential for short-term volatility, Nyati believes, likely contributed to the less-than-stellar performance.

However, according to her, despite the less-than-stellar listing, STBA's fundamentals remain strong, with a leading market position in FIBC and industrial packaging, consistent growth, and improved margins. However, the identified risks should be carefully considered before investing.

Nyati suggests that investors who participated in the IPO hold on to their shares but should closely monitor the company's performance and market conditions. "New investors might want to wait for a more favorable entry point," said Nyati.

Ahead of their listing, 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 public issue of Shree Tirupati Balajee, which comprised a fresh issue of 14,750,000 shares and an offer for sale of 5,690,000 shares with a face value of Rs 10, concluded for subscription on September 9, 2024, with a favourable response from investors. The issue was available with a price band of Rs 78-83 with a lot size of 180 shares. Shree Tirupati Balajee IPO received a remarkable 124.74 times subscription, led by Non-institutional investors (NIIs) who bid for a whopping 210.12 times. Meanwhile, Qualified Institutional Buyers (QIBs) bid for 150.87 times and retail investors at 73.22 times.

Shree Tirupati Balajee has also garnered reviews from several brokerage firms, including Anand Rathi Research, Team Swastika Investmart, and Master Capital Services, for the public issue. READ MORE.

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.