The IPO is purely an offer for sale of 1.37 crore equity shares by promoters and Wagner, an existing shareholder
Tega Industries, which offers solutions to marquee global clients in the mineral beneficiation, mining and bulk solids segments, has filed draft documents with capital market regulator Sebi for an initial public offering (IPO).
The IPO is purely an offer for sale of 1.37 crore equity shares by promoters and Wagner, an existing shareholder, as Kolkata-headquartered Tega Industries does not contemplate any fresh issuance from the date of the Draft Red Herring Prospectus (DRHP) till the listing of the equity shares on the stock exchanges. The shares of the company will be listed on the BSE and the NSE.
The IPO size could be in the range of Rs 700-750 crore, according to market sources.
According to the DRHP filed, promoters Madan Mohan Mohanka will sell up to 33.14 lakh and Manish Mohanka will sell 6.63 lakh equity shares through the offer for sale. In addition, Wagner, an entity affiliated with TA Associates (a global private equity firm), has proposed to sell its entire holding of 96.92 lakh equity shares. In 2011, the company had received funding from Wagner.
The equity shares proposed to be offered by Wagner in the offer for sale will also include a maximum of 86.92 lakh equity shares, which will result upon conversion of 86.92 lakh Compulsorily Convertible Participatory Preference Shares (CCPP) held by the firm. The conversion of CCPP will be completed prior to the filing of the Red Herring Prospectus with the RoC, the company said in the DRHP paper.
“The proceeds from the offer for sale will be paid to the selling shareholders. Certain of our promoters, Madan Mohan Mohanka and Manish Mohanka and our shareholder, Wagner Limited, are selling equity shares in the offer and will receive proceeds as part of the offer for sale in proportion of their respective portion of the offered shares transferred pursuant to the offer. Accordingly, our company will not receive any proceeds from the offer for sale,” Tega Industries said.
The company, which had commenced operations with a foreign collaboration with Skega AB, Sweden, in 1978, stated that its portfolio comprises more than 55 mineral processing and material handling products. Now, it operates six manufacturing facilities across the globe.
In fiscal year 2021 and 2020, its revenue from operations was Rs 805.52 crore and 684.85 crore, respectively, and restated total profit for the years were Rs 136.40 crore and Rs 65.50 crore, respectively.
Axis Capital and JM Financial are appointed as merchant bankers to advise the company on the public issue.