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The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading Company Ltd. has been a resounding success, attracting strong investor interest. The IPO, which closed on Monday, September 9, 2024, saw an overwhelming 124.27 times subscription, indicating a high level of confidence in the company's future prospects.
The IPO's price band was fixed at Rs 78-Rs 83 per share. The strong demand was evident across all investor categories, with non-institutional investors subscribing 209.97 times, retail individual investors (RIIs) subscribing 72.33 times, and qualified institutional buyers (QIBs) subscribing 150.87 times.
The grey market premium (GMP), which is the difference between the unlisted share price and the issue price, is currently at Rs 60. This indicates that market observers expect a significant listing gain, with an estimated 72.29 percent increase in share value. The GMP is subject to change based on market sentiment.
Shree Tirupati Balajee Agro Trading Company Limited, founded in 2001, specializes in the manufacturing and sale of flexible intermediate bulk containers (FIBCs), woven sacks, woven fabric, narrow fabric, and tapes. The company's focus on industrial packaging products appears to have resonated with investors.
The IPO, a book built issue of Rs 169.65 crores, consisted of both a fresh issue of shares and an offer for sale. The IPO opened for subscription on September 5, 2024, and is scheduled to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on September 12, 2024.
Shree Tirupati Balajee's strong financial performance in the fiscal year 2023-24, with a 16 percent increase in revenue and a 74 percent jump in profit after tax, likely contributed to the positive investor sentiment. The company's consistent growth trajectory is a key factor driving the success of the IPO.
Overall, the Shree Tirupati Balajee IPO has been a notable success, reflecting investor confidence in the company's future growth potential. The high subscription rate and the strong grey market premium suggest that the IPO is likely to witness a successful listing, with investors eagerly anticipating its debut on the stock exchanges.
Source: Shree Tirupati Balajee IPO Day 3: Check Subscription Status, GMP Today