Shree Tirupati Balajee Agro shares list on a tepid note; stock debuts at 12% premium

Shares of Shree Tirupati Balajee Agro Trading Company (STBATCL) made a muted Dalal Street on Thursday as the packaging solutions maker was listed at Rs 92.90 on NSE, a premium of 11.93 per cent over its issue price of Rs 83. Similarly, the stock was listed with a premium of 8.43 per cent at Rs 90 on BSE.

The listing has been below the expectations of the market. Ahead of its listing, shares of Shree Tirupati Balajee Agro Trading Company were commanding a grey market premium (GMP) of Rs 27-30 per share, suggesting a listing pop of nearly 32-35 per cent for the investors. However, it was around Rs 40 when the issue had closed for bidding.

The IPO of Shree Tirupati Balajee Agro Trading Company ran for bidding between September 5 and September 9. It had offered its shares in the fixed price band of Rs 78-83 per share with a lot size of 180 shares. The company raised a total of Rs 169.65 crore from its IPO, which included a fresh share sale of Rs 122.43 crore and an offer-for-sale (OFS) up to 46.90 lakh shares.

The issue was overall subscribed a total of 124.75 times, thanks to a strong push from non-institutional investors (NIIs), whose quota was booked 210.12 times. The quota for qualified institutional bidders (QIBs) was subscribed 150.87 times, while the portion reserved for retail investors saw bidding for 73.22 times during the bidding process.

Shree Tirupati Balajee Agro Trading Company, incorporated in October 2001, manufactures and sells flexible intermediate bulk containers (FIBCs) including large flexible bags, and other industrial packaging products such as woven sacks, woven fabric, narrow fabric, and tapes in the Indian domestic market and overseas.

Brokerages were mostly positive on the issue suggesting investors to subscribe to it for a long term. Unistone Capital and PNB Investment Services were the book running lead managers of the Shree Tirupati Balajee IPO, while Link Intime India served as the registrar for the issue.