Shri Balaji Valve Components IPO To Open On 27th Dec, Sets Price Band At Rs 95 to Rs 100 Per Share

Shri Balaji Valve Components Limited Incorporated in the year 2011 engaged in the manufacturing of valve components for the pharma, oil, gas, power and construction industries. The company is going to become public as it has announced to raise Rs 21.60 crores via an initial public offering (IPO) by issuing entirely a fresh issue of 21.6 lakh shares.

For its SME Initial Public Offering (IPO), Shri Balaji Valve Components Limited has established a fixed price band of Rs 95 to Rs 100 per share. The company's shares will be listed on the BSE SME, with a projected listing date of Wednesday, January 3, 2024.

As per the DRHP of the company, the issue proceeds will be utilized in funding capital expenditure towards the installation of additional plants & machines, to meet working capital requirements and general corporate purposes.
On Monday, January 1, 2024, the shares for the Balaji Valve Components IPO are anticipated to be allotted, and on Tuesday, January 2, 2024, the shares will be credited to the demat account of the allottees. The IPO comprises 50% of the net issue for QIB, 35% for retail investors and 15% of the net issue for the NII segment.

Retail investors need to contribute a minimum of Rs 1.20 lakh considering the minimum lot size for an application is 1200 shares. For HNIs, the minimum bidding size is two lots, or 2,400 shares, for a total investment of Rs 2.40 lakh.
In FY23, the company had a 29% revenue contribution from exports to North America, South America, Europe & Asia (other than India). Total Revenue reported in FY23 was Rs. 62.94 cr. from 39.06 Cr in FY2022, with an 81.50% RoNW, 17.60% EBITDA margin, and 10.33% PAT margin while RoCE was 26.47% in FY23.

Bigshare Services Pvt Ltd is the registrar for the Balaji Valve Components IPO, while Hem Securities Limited is the book-running lead manager. Hem Finlease is the market maker for the IPO of Balaji Valve Components.