Shree Tirupati Balajee Agro Trading Company Limited IPO

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They are a leading manufacturer and supplier of Flexible Intermediate Bulk Containers (FIBCs) and other industrial packaging products, such as woven sacks, woven fabric, narrow fabric, and tapes. Their business operations extend across both the Indian domestic market and international markets, where they provide customized bulk packaging solutions to clients in diverse industries. These industries include chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oils. Their FIBC products are integral to the packaging and transportation processes, offering an efficient alternative that streamlines loading and unloading operations, thereby reducing labor costs and improving logistical efficiency.

Product Portfolio:

i. Flexible Intermediate Bulk Containers (FIBCs): They specialize in manufacturing large flexible bags designed for the transportation and storage of bulk products. These containers are versatile and cater to various sectors, providing a robust solution for handling large quantities of goods.
2. Woven Sacks and Fabrics: Their range of woven sacks and fabrics is tailored to meet the specific packaging requirements of different industries. These products are durable, reliable, and designed to protect the contents during transportation.
3. Narrow Fabric and Tapes: In addition to larger containers, they also manufacture narrow fabrics and tapes, which are used in various industrial applications, adding to the versatility of their product offerings.

Core Competencies:

Their business is distinguished by several core competencies that contribute to their competitive edge:
i. Wide Product Range: They offer a broad spectrum of packaging solutions, from FIBC bags to woven bags and container liners, addressing the diverse needs of their clients.
ii. Multi-Location Facilities: Operating from five manufacturing units, they have established a robust production infrastructure that supports large-scale operations and ensures consistent quality and supply.
iii. Recurring Orders and Global Presence: Their ability to secure recurring orders from a global clientele underscores their reliability and the trust placed in them by their customers. They have a significant presence in both domestic and international markets.
iv. Scale of Production: Their extensive production capabilities enable them to meet large orders and fulfill the bulk packaging needs of various industries efficiently.
v. Technical Expertise: Their technical proficiency in manufacturing FIBCs and other packaging products ensures that we deliver high-quality, customized solutions tailored to the specific requirements of each industry.
vi. Environmental Contribution and Recycling Efforts: They are committed to environmental sustainability, and their operations include efforts to minimize waste and promote recycling, contributing positively to the environment.

Diverse Industry Applications:

Their products serve as logistics solutions across a wide array of industries, including but not limited to:
i. Chemicals and Agrochemicals: Providing safe and durable packaging for hazardous and non-hazardous materials.
ii. Food Industry: Ensuring food safety and compliance with regulatory standards during transportation and storage.
iii. Mining: Offering robust packaging solutions that withstand the demanding conditions of the mining industry.
iv. Waste Disposal: Supporting efficient and secure waste management processes.
v. Agriculture: Facilitating the storage and transport of agricultural products.
vi. Lubricants and Edible Oils: Providing reliable packaging that maintains the integrity of liquid products during transit.

Organizational Structure:

Their business operations are managed through a network of subsidiaries, each specializing in different aspects of their product range:
i. Honourable Packaging Private Limited (HPPL): Focuses on manufacturing and supplying a variety of packaging solutions.
ii. Shree Tirupati Balajee FIBC Limited (STBFL): Specializes in the production of FIBC bags and related products.
iii. Jagannath Plastics Private Limited (JPPL): Contributes to the production of woven sacks, fabrics, and other packaging materials.

Conclusion:

They are a one-stop solution for all FIBC packaging needs, offering a comprehensive range of products and services that cater to a wide variety of industries. Their commitment to quality, technical expertise, and environmental sustainability, combined with their broad product portfolio and global reach, make them a trusted partner for clients seeking efficient and reliable packaging solutions.

Objects of the Shree Tirupati Balajee Agro Trading Company Limited IPO:

The company intend to utilize the net proceeds of the Fresh Issue to meet the following objects: i. Repayment and/or prepayment, in part or full, of certain of the outstanding borrowings availed by the Company. ii. Investment in the subsidiaries HPPL, STBFL and JPPL for Repayment and/or prepayment, in part or whole, of certain outstanding borrowings availed iii. Funding the incremental working capital requirements of the company; iv. Investment in the subsidiaries HPPL, STBFL and JPPL for funding working capital requirements and v. General corporate purposes. Total number of share issue :- i. Fresh issue is 14,750,000 shares, ii. Offer for sale is 5,690,000 shares.

Shree Tirupati Balajee Agro Trading Company Limited IPO Details:

Open Date: Sep 05 2024
Close Date: Sep 09 2024
Total Shares: 20,440,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 169.65 Cr.
Lot Size: 180 Shares
Issue Price: ₹ 78 - 83 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 12 2024

Promoters And Management:

Binod Kumar Agarwal, aged 60, is the founder and Chairman & Managing Director of the Company, successfully leading its operations for the past 23 years. He holds a bachelor's degree in Chemical Engineering from Regional Engineering College, Rourkela, and has over 36 years of experience in the packaging industry. As the founding Promoter and Executive Director, he also serves on the boards of several Subsidiary and Group Companies. Mr. Agarwal is the driving force behind all corporate decisions and oversees the entire business operations, supported by a team of experienced professionals. Ranjan Kumar Mohapatra, aged 55, was appointed as a Non-Executive and Non-Independent Director of the Company on September 03, 2021. He holds a bachelor's degree from Utkal University and a Post Graduate Diploma in Plastics Testing & Conversion Technology from the Central Institute of Plastics Engineering & Technology. With over 22 years of experience in product development and design, he has been responsible for the entire operations of the Company's manufacturing plant since its inception. Mr. Mohapatra has also served as an Executive Director at Shree Tirupati Balajee FIBC Limited and continues to manage manufacturing operations at Shree Tirupati Balajee Agro Trading Company Limited. He is known for his innovative approaches, expertise in solving design challenges, and commitment to creating sustainable solutions, improving process stability, and enhancing product quality. Anubha Mishra, aged 39, was appointed as the Executive Director of the Company on November 18, 2023, after being associated with the company for over a decade. She holds an MBA in Foreign Trade from Devi Ahilya Vishwavidyalaya (DAVV), Indore, and brings 12 years of experience in international marketing. Previously employed by Shree Tirupati Balajee Agro Trading Company Limited since April 2014, her expertise in identifying new market opportunities and expanding market share led to her promotion to Executive Director. Her strong academic background and strategic vision are instrumental in driving the company's growth and maintaining its competitive edge.

Financials of Shree Tirupati Balajee Agro Trading Company Limited IPO:

A. Balance Sheet
Particular (In Crores ) Mar-22 Mar-23 Mar-24
Equity Share Capital 1.15 1.16 66.82
Reserves 91 109 106
Borrowings 240 224 244
Trade Payables 17 9 34
Other Liabilities 43 49 66
Total Liabilities 300 282 344
Net Block 56 51 72
Capital Work in Progress 14 22 16
Investments 0.6 0.9 1
Other Assets 27 20 12
Total NC Assets 98 95 101
Receivables 48 51 93
Inventory 194 201 252
Cash & Bank 11 9 8
Other Assets 41 36 63
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Crores ) Mar-22 Mar-23 Mar-24
Sales 444 475 540
Raw Material Cost 286 318 414
Purchases of Stock In Trade 16 1 0
Change in Inventory -2 -11 -39
Employee Cost 31 34 33
Other Expenses 82 85 70
Other Income 10 3 13
EBITDA 41 51 75
EBITDA Margin 9.12% 10.67% 13.91%
Depreciation 7 6 7
Interest 16 18 21
Profit before tax 17 27 47
Tax 4 6 11
Net profit 14 21 36
NPM (%) 3.01% 4.33% 6.53%
C. Cash Flow Statement
Particular (In Crores ) Mar-22 Mar-23 Mar-24
Cash From Operating Activity
Profit From Operation 31 48 62
Receivable -1 -3 -42
Inventory -15 -7 -51
Payable -25 -8 25
Loans And Advances -9 7 -24
Other WC Items 0.6 5 14
Working Capital Changes -50 -6 -77
Direct Taxes -3 -6 -11
Net Cash Inflow from Operating Activity -22 37 -26
Cash from Investing Activity
Fixed assets purchased -18 -8 -17
Investments purchased -0.6 -0.3 -0.2
Other investing items 12 0.5 6
Net cash inflow from investing activities -7 -8 -11
Cash from Financing Activity
Proceeds from shares 0 0.2 33
Proceeds from borrowings 49 0 33
Repayment of borrowings 0 -16 -13
Intrest paid fin -16 -18 -21
Net Cash Flow 4 -4 -5

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Shree Tirupati Balajee Agro Trading Company Limited 540 36 4.42 18.8 83 677
Commercial Syn Bags Ltd 288 8 1.97 36.4 66 264
Emmbi Industries Limited 377 10 5.62 21.9 123 218
Rishi Techtex Limited 112 1 1.83 33.9 61 45
* All the data is as per FY24.

Recommendation on Shree Tirupati Balajee Agro Trading Company Limited IPO:

1. Shree Tirupati Balajee Agro Trading Company Limited is a leading manufacturer and seller of Flexible Intermediate Bulk Containers (FIBCs), also known as large flexible bags, along with other industrial packaging products. 2. Their product line includes woven sacks, woven fabric, narrow fabric, and tapes. These products are marketed both in the Indian domestic market and internationally. 3. They specialize in providing customized bulk packaging solutions for a diverse range of industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oil sectors. 4. Core Competencies Their core competencies lie in their extensive product range, multi-location manufacturing facilities, ability to secure recurring orders, and a strong global presence. They manufacture specific products through their various subsidiaries, including Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL). With over 20 years of experience. 5. Competition They face challenges from both large, organized companies and smaller, regionally based competitors. Their competitors face competition from several players in the industry, including Kanpur Plastipack Ltd., Rishi Techtex Ltd., Jumbo Bag Ltd., EMMBI Industries Ltd., and Commercial Syn. Bags Ltd. 6. The Revenue has Increased from Rs.444 Crores in FY22 to Rs.540 Crores in FY24. 7. The EBITDA has Increased from 41 Crores in FY22 to 75 Crores in FY24. 8. The PAT has Increased from 14 Crores in FY22 to 36 Crores in FY24. 9. As per FY24, CFO/EBITDA is 0.82, and EPS is 4.42, 10. Market Capitalization is 677 Crores and P/E is 18.8x based on FY24.

Lead Manager of Shree Tirupati Balajee Agro Trading Company Limited IPO:

  1. PNB Investment Services Limited
  2. Unistone Capital Pvt Ltd

Registrar of Shree Tirupati Balajee Agro Trading Company Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Shree Tirupati Balajee Agro Trading Company Limited Plot No.192, Sector 1 Pithampur Dhar - 454775 Phone: +917314217400 Email: info@tirupatibalajee.net Website: https://www.tirupatibalajee.net/

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