Shree Tirupati Balajee Agro Trading Co. Ltd. (STBATCL) is a prominent player in the manufacturing and sale of Flexible Intermediate Bulk Containers (FIBCs) and other industrial packaging products. These products include woven sacks, woven fabric, narrow fabric, and tapes, serving both domestic and international markets.
The company caters to a broad range of industries, from chemicals and agrochemicals to food, mining, agriculture, and waste disposal. By offering customized bulk packaging solutions, STBATCL has established itself as a reliable partner for clients seeking efficient and cost-effective logistic solutions.
The company’s strengths lie in its wide product range, multi-location facilities, recurring orders, global presence, and commitment to environmental sustainability. It offers a variety of FIBC bags, woven bags, and container liners, making it a one-stop solution for all bulk packaging needs.
With over 20 years of experience and five manufacturing units, STBATCL operates through subsidiaries like Honorable Packaging Private Limited, Shree Tirupati Balajee FIBC Limited, and Jagannath Plastics Private Limited. The company’s diversified portfolio and strong production capabilities ensure that it is not overly reliant on any single sector.
STBATCL is now set to launch its maiden IPO, with a combination of fresh equity shares and an Offer for Sale (OFS). The IPO will consist of 14.75 million fresh equity shares and 5.69 million shares from the OFS, aiming to raise approximately INR 169.65 crore at the upper price band.
The IPO price band is set between INR 78 and INR 83 per share, with the issue opening on September 5, 2024, and closing on September 9, 2024. The company plans to use the proceeds for debt repayment, investments in subsidiaries, and working capital needs, while the remainder will be allocated to general corporate purposes.
Financially, STBATCL has shown steady growth over the past three fiscal years, with revenue increasing from INR 453.79 crore in FY22 to INR 552.82 crore in FY24. The company’s net profit also rose from INR 13.66 crore to INR 36.07 crore during the same period. Despite these positive figures, the IPO is relatively fully priced, with a P/E ratio of 19.67 based on FY24 earnings. While the company has not paid dividends in recent years, it plans to adopt a prudent dividend policy in the future.
For investors, STBATCL offers a solid growth trajectory in the industrial packaging sector. However, given the fully priced nature of the IPO, it may be more suitable for those with a medium to long-term investment horizon.
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