Tega Industries makes stellar market debut

The portion reserved for qualified buyers was subscribed 215 times, whereas the non-institutional quota got subscribed 666 times during the period.

Tega is a leading manufacturer and distributor of specialized ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry.
Tega is a leading manufacturer and distributor of specialized ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry.

Shares of Tega Industries made a bumper debut on the bourses on Monday after a record 219x subscription in its three-day share sale. The stock opened at Rs 760 on the NSE, a 68% premium versus its issue price of Rs 453 apiece. On the BSE, the stock got listed at Rs 753, a 66% premium against the offer price. The stock then made an intra-day high of Rs 767.10 before closing at Rs 725.50, up 60.15%.

The Rs 619.23-crore public offer was subscribed more than 219 times between December 1 and December 3 — the third-highest subscribed IPO of 2021 amid robust demand from institutional buyers. The portion reserved for qualified buyers was subscribed 215 times, whereas the non-institutional quota got subscribed 666 times during the period.

However, the company has not received any proceeds from the offer as the IPO was entirely an offer-for-sale by existing shareholders and promoters. Post IPO, the promoters hold a 79.2% stake, compared with 85.2% held earlier. The public shareholding has increased to 20.8% from 14.8%.

Leading brokerage houses and analysts had assigned a positive rating to the IPO amid the company’s strong market presence and future growth prospects. Tega is the second-largest producer of polymer based mill liners and the only player providing a ‘hybrid liner’ across both large SAG mill & ball mill. Nearly 86% of the revenues are from outside of India and 74% comprises repeat orders, reflecting strong trust from its customers.

“Tega’s strong market position, innovative products and higher entry barriers likely to help maintain its margins while consistent growth with high repeat business (~74%) would augur well in the long run. At the upper end of the price band, it is valued at ~22x P/E for FY21,” ICICI Direct said in a note.

The company’s revenues from operations stood at Rs 173.22 crore as of June 30, 2021, while the net profit was at Rs 11.9 crore during the same period. Tega is a leading manufacturer and distributor of specialized ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry.

Mehul Mohanka, MD & group CEO, said: “Sincere gratitude to all stakeholders and investors who have bestowed their faith in us. This is beginning of the journey for us and we are committed to long-term shareholder value accretion in long run through consistent performance growth.”

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