Shree Tirupati Balajee Agro Trading Filed DRHP With SEBI

Incorporated in 2001, Shree Tirupati Balajee Agro Trading Company Limited has filed a Draft Red Herring Prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) on March 22, 2024. Shree Tirupati Balajee Agro IPO will be a combination of both a fresh issue and an offer for sale. Under the fresh issue portion, the company will issue 1,47,50,000 shares of face value of ₹10 each. The company’s promoter, Binod Kumar Agarwal, will offload 56,90,000 shares under the offer-for-sale portion of the issue. Hence, the total issue size will comprise 2,04,40,000 Equity Shares of face value of ₹10 each.

About Shree Tirupati Balajee Agro Trading Company Limited

Shree Tirupati Balajee Agro Trading Company Limited is engaged in the business of manufacturing and selling Flexible Intermediate Bulk Containers (FIBCs), i.e. large flexible bags and other industrial packaging products such as woven sacks, woven fabric and narrow fabric, tapes in the Indian domestic market and overseas.

The company offers customised products and caters to the bulk packaging solutions of its clients from diverse industries like chemicals, agrochemicals, food mining, waste disposal industry, agriculture industry, lubricants and edible oil by supplying FIBC products for transportation purposes and their packaging requirements.

The company earns the majority of its revenue from the export of FIBC products. Shree Tirupati Balajee Agro derived around 63.06%, 64.13%, 84.44% and 67.73% of total revenue for the period ended September 30, 2023, and in FY 2023, FY 2022 and FY 2021, respectively.

Purpose of Shree Tirupati Balajee Agro IPO

The following are the objectives of the IPO:

• Repayment and/or pre-payment or repayment, in full or part, of certain outstanding borrowings.
• Funding working capital requirements of the company and subsidiaries.
• General corporate purposes.

SWOT Analysis of Shree Tirupati Balajee Agro Trading Company Limited

Strengths

• The company operates a diverse customer base across various industries, consistently providing them with its product offerings.
• Growing Demand for Sustainable Packaging Solutions as FIBCs are a more sustainable packaging solution than traditional packaging materials, such as drums and sacks.

Weaknesses

The company’s manufacturing facilities are located in Madhya Pradesh. Any unforeseeable event in the state could impact the business operations.

Opportunities

• It is focused on developing the new product line and striving to add new products that are required or essential.
• The company continues to improve operating efficiencies through technology enhancements.

Threats

• Higher foreign currency exchange rate fluctuations may harm the results of operations, impact cash flows, and cause financial results to fluctuate.
• High dependence on short-term raw material contracts, coupled with exposure to price fluctuations and a lack of hedging policies, poses a significant threat.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.