Tega Industries debuts on the bourses at 68% premium over its issue price
Tega Industries has made a stellar stock market debut, with its equity shares listed at Rs 760, a 68 per cent premium over its issue price of Rs 453 per share on the National Stock Exchange (NSE). On the BSE, the stock opened at Rs 753, a 66 per cent higher versus its issue price, the exchange data showed.
Post listing, the stock hit high of Rs 765 and a low of Rs 721 on the BSE. At 10:01 am; the stock was traded at Rs 751.80, a 66 per cent higher against issue price. A combined 4.1 million shares changed hands at the counter on the NSE.
Initial public offering (IPO) of Tega Industries had received a robust response from the all category investors with demand for shares exceeding those on offer by a whopping 219 times. Tega was the sixth most subscribed IPO in India, and it had received the third highest subscription this year after Latent Views and Paras Defence, which garnered 339x and 304x subscription, respectively.
The retail portion of the IPO was subscribed 29 times, the wealthy investor portion 666 times, and the institutional investor portion 215 times. The offering of Tega Industries, a manufacturer of consumables for the mining industry, was entirely an offer for sale.
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.
Analysts at Religare Broking believe that the company is well placed across the value chain of a mineral processing as it provides a wide range of products and solutions which are critical at different stages of mineral processing. Further, its leadership position, strong R&D, track record of developing innovative product portfolio and marquee global customers are key positives for the company.
In the long term, the company intends to gain market share and increase penetration globally in North America, South America, Australia and South Africa. Besides, it has plans to expand its manufacturing unit in Chile, grow product offerings and explore opportunities for inorganic growth. On a financial front, the company’s performance has been strong wherein revenue/PAT grew at a CAGR of 13 per cent/104 per cent between FY19-21 and the growth momentum is expected to continue going forward as well. From a long term perspective, we have a positive view on the company, the brokerage firm had said in IPO note.
Global manufacturing facilities, sales and operations expose Tega to the risks of doing business in foreign countries, which may adversely affect the business, financial condition and results of operations. Any failure to expand or effectively manage sales and distribution network, both in India and overseas, could have an adverse effect on the business, financial condition and results of operations, are among key concerns said HDFC Securities in IPO note.
Tega is dependent on third party logistic and support service providers for the delivery of raw materials and finished products and any disruptions in their services including transportation services or a decrease in the quality of their services may adversely affect the business, financial condition and results of operations. The company has voluntarily approached the RBI in relation to certain delays in filing of Form FC-GPR and Form ESOP by the Company in the past and cannot be assured that these matters will be resolved in a timely manner, the brokerage firm had said.