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Salient features of the IPO:

• Shree Tirupati Balajee Agro Trading Company Ltd.

(STBATCL), is engaged in the business of manufacturing and selling of Flexible Intermediate Bulk Containers (FIBCs) and offer a wide range of packaging solutions to its clients, is coming up with an IPO to raise around Rs. 159.4 - 169.7cr, which opens on 05th Sep. and closes on 09th Sep. 2024. The price band is Rs. 78 - 83 per share

• The IPO is a combination of fresh issue (Rs. 115.1 - 122.4cr) and OFS portion (of Rs. 44.4 - 47.2). The company will not receive any proceeds from the OFS portion. From the fresh issue net proceeds, the company will be utilizing Rs. 31.5cr for repayment or prepayment, in part or full, of certain of its outstanding borrowings availed by the company, Rs. 20.8cr for investment in its subsidiaries HPPL, STBFL and JPPL for repayment or prepayment, in part or full, of certain of outstanding borrowings availed, Rs. 13.5cr for funding incremental working capital requirements of the company, and Rs. 10.7cr for investment in its subsidiaries HPPL, STBFL, and JPPL for funding working capital requirements. Residual proceeds will be used for general corporate purposes.

• One of the promoter & promoter group (P&PG) entities are participating in the OFS and offloading 0.569cr shares. Consequently, post-IPO, the P&PG and public shareholders will have 65.42% and 34.58% stake in the company, respectively.

Key competitive strengths:

• Diverse customer base

• Cost-Effectiveness of FIBCs

• Multi- product portfolio

• Quality Standard Certifications & Quality Tests

• Experienced Promoter and senior management team

• Multi-market Company

• Its Product Development Capabilities

• Growing Demand for Sustainable Packaging Solutions

Risk and concerns:

• General slowdown in the global economic activities

• Geographical concentration of business

• Volatile fluctuations in crude oil prices

• Under-utilization of its manufacturing capacities

• Negative cash flow from its operating, investing, and financing

• Foreign currency exchange rate fluctuations

• Competition

Below are the key highlights of the company:

• According to the Indian Flexible Intermediate Bulk Container Association (IFIBCA), the FIBC market in India has experienced significant growth of nearly 38% in last 10 years. FIBCs are widely used for storing and transporting food products due to their lightweight, easy handling, and space-saving stackability. As a leading exporter of food products, India relies on food-grade FIBCs for shipping goods to international markets. However, the FIBC industry saw a slight decline in production by about 3.3% Y-O-Y in 2022, but rebounded with an 8% increase in 2023. By the end of 2024, production is expected to reach approximately 151.1 mn units. The FIBC market was valued at 926 mn USD in 2023 and has grown at a CAGR of 6.7% between 2020 and 2023.

• Incorporated on August 23, 2001, STBATCL specializes in manufacturing and selling FIBCs and other industrial packaging products, such as woven sacks, woven fabric, narrow fabric, and tapes. The company serves both the Indian domestic market and international clients. STBATCL provides customized bulk packaging solutions for a wide range of industries, including chemicals, agrochemicals, food, mining, waste disposal, agriculture, lubricants, and edible oils.

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SEBI Registration no.: INZ 000160131