If you’re eyeing the latest investment opportunities in the SME sector, you’ve likely heard the buzz around the Balaji Valve Component SME IPO. This much-anticipated IPO is set to open doors for investors looking to tap into the valve component industry, a niche yet crucial part of the manufacturing sector.
From December 27th to 29th, 2023, the IPO will present an opportunity to buy shares within the price band of $95 to $100, with a lot size of 1200 shares. In this article, I’ll guide you through the essentials of subscribing to the Balaji Valve Component SME IPO, whether you’re a seasoned investor or new to the game. Stay tuned to uncover how you can partake in this investment opportunity and what you need to know to make an informed decision.
Balaji Valve Components IPO Details
Investing in SMEs like Balaji Valve Components Ltd. offers a unique opportunity, and understanding the IPO details is critical for making an informed investment. The IPO is scheduled to be live from December 27, 2023, to December 29, 2023. It’s essential to mark your calendars and be prepared for these dates to participate actively.
Each share in the IPO is priced with a face value of ₹10. The price band is set between ₹95 to ₹100 per share, showcasing an accessible entry point for various investors. To subscribe, investors need to purchase a minimum lot size of 1200 shares, meaning the minimum investment would sit between ₹114,000 and ₹120,000, depending on the finalized issue price.
Taking a look at the total issue size, the company will be offering 2,160,000 shares, aggregating to approximately ₹21.60 Cr entirely through a fresh issue. This indicates that the company is looking to raise capital to fuel its growth and expansion plans. The fresh capital infusion also means there’s a significant opportunity for value appreciation as the company scales.
The issue type is a Book Built Issue IPO, which will be listed on the BSE SME platform. This is a nod to Balaji Valve Components Ltd.’s commitment to growth within a well-regulated framework. Additionally, the market maker portion aligned is 114,000 shares, which Hem Finlease, a known entity in market making, will manage.
Investors should take note of the shareholding structure as it shifts from pre to post-issue. The shareholding pre-issue stands at 6,000,000 shares and will increase to 8,160,000 shares post-issue. This change reflects the dilution and, hence, the potential for change in the per-share value post-listing. Keeping an eye on this can help gauge the market’s reaction to the IPO and the value prospects for Balaji Valve Components Ltd.
Staying updated with these details will help you navigate the IPO process more smoothly. Remember to review the financials and performance indicators for a comprehensive understanding.
Balaji Valve Components IPO Timeline
As an experienced investor, I’m always on the lookout for new opportunities, and the Balaji Valve Components SME IPO offers just that. The IPO opens on December 27, 2023; for anyone considering participating, it’s crucial to mark the closing date on December 29, 2023. This narrow window of time is your chance to become part of the Balaji Valve Components growth story.
What comes next is the basis of allotment, scheduled for January 1, 2024. If you’ve taken the plunge and applied for the IPO, this is the day you find out if you’ve secured your shares. Right after that, investors who weren’t allotted shares can expect refunds initiated by January 2, 2024.
For those fortunate to have shares allotted, the credit of shares to Demat accounts happens quickly, also on January 2, 2024. The efficiency in this process is something I appreciate as an investor; it means there’s no extended limbo period where your capital is tied up without knowing the outcome.
It all culminates on January 3, 2024, with the listing date of the IPO. This is when the shares become tradeable on the BSE SME platform. It’s a day often accompanied by a flurry of activity as the market responds to the new entrant. Whether you’re in for the long haul or looking to make a quick profit, this is a day to watch the market closely.
Lastly, remember that the cut-off time for UPI mandate confirmation is 5 PM on December 29, 2023, to ensure your application is processed smoothly. It’s a minor detail, but missing this could mean missing out on the IPO entirely. As with any investment, staying on top of these details can make all the difference.
Balaji Valve Components IPO Lot Size
When considering participation in the much-anticipated Balaji Valve Components SME IPO, I must address the designated IPO lot size. The lot size is crucial as it determines the minimum number of shares an investor can bid for. For Balaji Valve Components, the lot size is set to 1200 shares. This means that if I’m looking to be a part of this investment opportunity, I’d be committing to at least this quantity of shares at the time of application.
With a price band ranging from ₹95 to ₹100 per share, the investment I’d be considering is not insignificant. For retail investors like myself, who might be exploring this IPO with a cautious or entry-level approach, the minimum investment would be ₹120,000. This amount reflects the upper price band multiplied by the lot size, and here’s a breakdown:
The High Networth Individuals (HNIs), on the other hand, can invest a minimum of ₹240,000, equating to two lots or 2400 shares. This enables broader participation and potentially higher investment volume, indicating serious investor confidence in the prospects of Balaji Valve Components.
I must carefully consider my financial readiness before deciding on the number of lots to go for. Keeping track of the subscription status can also provide insights into demand and inform my decision-making process. It’s best practice for investors like me to keep an eye on the Live Subscription, Allotment Status, and Grey Market Premium (GMP) pages for any IPO to gauge investor sentiment.
Remember, these figures are not just numbers; they’re a reflection of my belief in the company’s future and my willingness to be part of its growth story. So, I’ll closely watch how the Balaji Valve Components IPO unfolds and make my move cautiously and optimistically.
Balaji Valve Components IPO Promoter Holding
When examining an IPO, promoter holding is a key aspect I consider, as it can indicate the level of confidence and commitment the promoters have in the company’s growth and stability. With respect to the Balaji Valve Components IPO, the nuances of promoter shareholding pre and post-issue tell a compelling story.
Prior to the IPO, the company’s ownership was decidedly simple. The promoters, Laxmikant Sadashiv Kole, Madhuri Laxmikant Kole, and Shrinivas Laxmikant Kole, held a full 100% shareholding in the enterprise. This complete ownership underscores the promoters’ strong grip on the company’s direction and their direct involvement in its operations.
Post-IPO, the scenario will change; the promoter holding is expected to dilute to 73.53%. While this represents a significant reduction in their share percentage, it’s common practice to release a portion of equity to the public during public offerings. Importantly, a promoter holding above 50% post-IPO is often viewed positively, signifying that the founding members still have more than a controlling stake in the company. It suggests they are not relinquishing their dominant role and continue to have skin in the game.
It’s worth highlighting the accompanying change in the company’s capital structure and public involvement:
|Pre Issue (%)
|Post Issue (%)
This transition aims to raise new funds without gaining debt, a strategic move that can empower Balaji Valve Components with the capital needed for expansion, debt reduction, or other corporate activities. The company’s decision to reduce promoter holding might also pave the way for increased transparency and corporate governance, often associated with publicly traded companies. The substantial promoter holding post-issue still signals a vote of confidence to potential investors considering this IPO.
Shri Balaji Valve Component Limited Financial Information
As we delve into Shri Balaji Valve Component’s financials, it’s crucial to understand the backbone of any IPO—its monetary health. The financial data is a testament to the company’s growth trajectory and resilience, shedding light on its potential as a worthwhile investment. In my examination of the company’s financial records, a clear pattern of growth emerges.
Here’s a snapshot of the company’s financial performance:
|30 Jun 2023
|31 Mar 2023
|31 Mar 2022
|31 Mar 2021
|Profit After Tax
|Reserves and Surplus
Note: All amounts are in ₹ Lakhs.
The considerable increase in assets and revenue over the last two years indicates a vigorous expansion. The company’s assets have almost tripled from March 2021 to June 2023, an undeniably robust sign. Revenue, taken as a health marker of sales performance, has experienced a meteoric rise—it’s quadrupled within the same timeframe.
Notably, the Profit After Tax (PAT) has seen a dramatic recovery from a loss in March 2021 to substantial profits by June 2023. This reflects the company’s ability to generate revenue and translate those figures into actual earnings. It’s also worth highlighting that the reserves and surplus reflect a company strengthening its capital base, thus furnishing itself against future uncertainties.
Balaji Valve Components IPO Reservation
As we delve further into the Balaji Valve Components IPO specifics, it’s crucial to understand how the shares are allocated among different investor categories. The company has structured the IPO reservation to cater to various investors, ensuring a balanced allocation strategy.
Here’s a breakdown of the IPO Allocation for Balaji Valve Components:
|Not more than 50% of the Net Issue
|Not less than 35% of the Net Issue
|Not less than 15% of the Net Issue
Potential investors need to note that the Quality Institutional Buyers (QIBs) have a reservation of up to half the net issue, representing significant confidence from institutional backers. Retail investors are allocated no less than 35%, ensuring that individual investors have a substantial portion set aside for them. Non-Institutional Investors (NII) or High Net-Worth Individuals (HNI) get a minimum of 15%, confirming the IPO’s accessibility to diverse investors.
For retail investors, accessing the IPO is straightforward with a Minimum Investment laid out clear and precise. With a minimum lot size of 1200 shares and a price band set between $95 to $100 per share, the investment math is simple. At 1200 shares, you’re looking at a minimum investment of $120,000, affirming the IPO’s commitment to making financial participation feasible for a broad investor base.
The reservation pattern is a pivotal aspect that reflects Shri Balaji Valve Component Limited’s approach towards inclusivity and equal opportunity. Whether you’re a seasoned investor or new to the field, understanding the reservation structure is key to making informed decisions regarding IPO participation.
Remember, with the Balaji Valve Components IPO, reservations are made keeping in mind the balance required to attract varied investors while ensuring fair distribution across all categories. If you’re contemplating taking the plunge, open an IPO account today and bookmark the pages for subscription status, allotment status, and Grey Market Premium updates. Stay on top of the game by regularly checking for the latest info; after all, staying informed is one of the cornerstones of successful IPO investing.
About Shri Balaji Valve Components Limited
When exploring investment opportunities, it’s crucial to understand the company you’re considering. Shri Balaji Valve Components Limited has been on my radar since they announced their intention to go public. This company has carved out a niche for itself in the manufacturing sector, specializing in the production of high-quality valve components.
As a manufacturer, Shri Balaji Valve Components Limited operates with a keen eye on innovation and quality, ensuring that its products meet stringent industry standards. They have a state-of-the-art manufacturing facility equipped with the latest technology to maintain high levels of efficiency and production capability.
Their product line is diverse, catering to different industries, which indicates their adaptability and understanding of various market needs. This versatility helps in risk mitigation by spreading across multiple sectors and showcases the company’s potential for growth and expansion.
Another aspect worth noting is that Shri Balaji Valve Components Limited’s commitment to customer satisfaction has been steadfast, which is evident from their client retention and repetitive business, a positive sign for investors. By maintaining strong relationships with their customers, they have built a foundation that could provide continuous revenue streams.
While keeping this information in mind, it’s also wise to consider the broader economic factors and industry trends that could affect the company’s performance post-IPO. The valve industry is often seen as a reflection of the larger manufacturing sector’s health, making it imperative to stay informed about any shifts or technological advancements that could influence market dynamics.
It’s this level of detail that underscores the importance of doing due diligence when evaluating Shri Balaji Valve Components Limited as a potential addition to your investment portfolio. Understanding the company’s standing in its industry and its potential for future growth is essential before making any investment decisions.
Shri Balaji Valve Components IPO Review
In delving deeper into the specifics of the Shri Balaji Valve Components IPO, it’s worth highlighting the sheer volume of equity being made available to the public. With 20,520,000 equity shares on offer, this marks a substantial entry into the market. These shares represent a fresh issue, meaning they’re newly minted and contributing directly to the company’s capital.
Many potential investors might ponder the implications of a 100% fresh issue. Here’s what it generally indicates:
- There’s potential for company expansion and growth, as funds raised are likely to be funneled directly into developmental projects or debt reduction.
- With the price band of ₹95 to ₹100 per share, retail investors can gauge a clear entry point for their investment, tailored to accommodate a range of investment strategies.
Investors should also consider the face value of ₹10 per share, a detail not to be overlooked, as it offers insight into the underlying value attributed by the company to its shares.
Navigating through the investment procedure can be managed proficiently. A wealth of resources, including contacting Bigshare Services Pvt Ltd or resorting to online platforms like Zerodha, ensure a streamlined application process for the IPO. The availability of both ASBA and UPI channels simplifies the investment avenues further, catering to the convenience of investors.
What’s intriguing is the absence of information regarding GMP, a certain teaser that leaves a veil over the market’s anticipation and speculative premium on these shares. Yet, this does not diminish the significance of the IPO’s size and its potential impact on the market.
The investor community should certainly keep a vigilant eye on the allotment status. Expected on January 1, 2024, it’ll be a telling moment that clarifies how shares have been divvied up and which investors have had their bids materialize into actual stakes. It is imperative to regularly check updates, especially regarding the allotment status, to stay abreast with the latest developments.
|₹95 to ₹100 per share
|₹10 per share
|Number of Equity Shares
Balaji Valve Components IPO Strengths and Weaknesses
As we’ve delved into the specifics of the Shri Balaji Valve Components IPO, it’s evident that the offering presents a unique opportunity for investors. The fresh issue aspect ensures that capital raised will be channeled directly into company growth, which can be a strong signal for potential shareholders. However, the lack of Grey Market Premium information suggests that investors should proceed with caution and perform due diligence. To make a well-rounded investment decision, it’s critical to stay informed on the latest developments, especially concerning the allotment status. With the IPO size, price band, and face value now clear, I’m confident that investors are better equipped to weigh the strengths and weaknesses of this investment opportunity. Keep an eye on market updates and company performance to guide your investment journey with Shri Balaji Valve Components.
How to Apply for Balaji Valve Components IPO
To apply for the Balaji Valve Components IPO through Zerodha, follow these steps:
- Log in to your Zerodha account on kite.zerodha.com.
- Click on “Bids” and then “IPO”.
- Click on “Apply”.
- Select the investor type as “Individual” or “Employee”.
- Enter your UPI ID.
- Enter the quantity and price for the IPO. The quantity should be a multiple of the lot size, and the price entered should be within the issue price range.
- Tap on the undertaking checkbox and click on “Submit”.
- Accept the mandate on the UPI app. It will be sent after 10 AM on the IPO start date.