Profit Sheets

Tega Industrie’s IPO : check issue date ,GMP Price, subscription and listing details

December 2, 2021 05:12 PM

Tega Industries IPO opens today 10 key things to know about the company, issue
The Tega Industrie's plans to mop up RS 619.22 crore at the upper price band. The IPO is entirely an offer-for-sale (OFS) of 1,36,69,478 equity shares by selling to shareholders and promoters.

Tega Industrie’s  which manufactures and distributes specialized ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining and bulk solids handling industry, will float a public issue on December 1.

Tega Industries IPO allotment  finalized :

Bidders who applied for the public issue worth ₹619 crore are advised not to roam from pillar to post after the announcement of share allocation as they can check their IPO application status online by logging in at BSE website or at the website of official registrar of the public issue.

As per the RHP (Red Herring Prospectus) of Tega Industries IPO, its official registrar is Link Intime Private Limited and its official website is linkintime.co.in.

Tega Industries IPO Subscribed 219.04 Times On Day 3

Investors piled in on the third day of the RS 619-crore initial public offering of Tega Industries Ltd. The offer was subscribed over 219 times on day three.

It was fully subscribed within an hour of opening on Wednesday. The Kolkata-based mining equipment manufacturer has set a price band of RS 443-453 apiece for the IPO—a pure offer for sale by promoters and existing arm of private equity firm TA Associates.

The maiden offer constitutes 20.6% of the post-issue equity of the company, with the promoters holding 79.2% after the share sale.

The company is seeking a market value of RS 3,003 crore at the upper end of the price band.

The offer-for-sale proceeds will go to the promoter and investors offering shares in the issue, and not to the company.

Tega Industries subscribed 13.46 times on the second day of bidding:

Tega Industries’ RS 619-crore initial public offering continues to see healthy demand, with the issue being subscribed 13.46 times on December 2, the second day of bidding.  Investors have bid for 12.87 crore shares against an IPO size of 95.68 lakh equity shares.

Retail and non-institutional investors provided strong support to the issue as portion set aside for them were subscribed 16.82 times and 19.10 times, respectively. Qualified institutional investors bought shares 3.35 times the allotted share quota.

The IPO is completely an offer-for-sale of up to 13,669,478 equity shares by promoters and shareholders, hence the company will not receive any issue proceeds. The price band for the offer is RS 443-453 a share.

Tega Industrie’s subscribed 4.67 times on the first day of bidding:

The initial public offering of Tega Industries, the second largest producer of polymer-based mill-liners, has garnered bids for 4.46 crore equity shares against an issue size of 95.68 lakhs, subscribing 4.67 times on December 1, the first day of bidding.

The company mobilized RS186 crore from anchor investors on December 1. Subsequently, its issue size was down to 95.68 lakh equity shares, from 1.36 crores.

Retail investors bought 7.51 times of their reserved portion and non-institutional investors portion booked 4.17 times. Qualified institutional investors have put in bids for 7 percent of the reserved portion.

Let’s take a look at the 10 key things to know before subscribing to the issue:

IPO Dates

The Tega Industrie’s IPO offer will open for subscription on December 1, 2021, and the last date for subscribing to the offer is fixed at December 3, 2021.

Price Band

The Kolkata-based company has fixed the price band at RS 443-453 per share.

Offer Details

The Tega Industrie’s plans to mop up RS 619.22 crore at the upper price band. The IPO is entirely an offer-for-sale (OFS) of 1,36,69,478 equity shares by selling to shareholders and promoters. Hence, the company will not get any fund from the offer.

Promoters Madan Mohan Mohanka and Manish Mohanka will sell 33,14,657 equity shares and 6,62,931 equity shares, respectively, through the offer-for-sale, and the remaining 96,91,890 equity shares will be offloaded by investor Wagner.

The promoter shareholding stands at 85.17 percent, which will come down to 79.17 percent, after this issue.

The anchor book, if any, may open for a day on November 30, a day before the opening of the IPO.

Objective of the Issue

The objective of the offer is to achieve the benefits of listing the equity shares on the stock exchanges.

Lot Size and Reserved Portions

Investors can bid for a minimum of 33 equity shares and in multiples of 33 shares thereafter. Retail investors can make a minimum investment of RS 14,949 per lot and their maximum investment would be RS 1,94,337 for 13 lots.

Company Profile and History

The company offers comprehensive solutions to global clients in the mineral beneficiation, mining and bulk solids handling industry across different stages of mining and mineral processing, screening, grinding and material handling, including after-market spends on wear, spare parts, grinding media and power.

Globally, on the basis of revenues, it is the second-largest producer of polymer-based mill-liners as of June 30, 2021. Its product portfolio comprises more than 55 mineral processing and material handling products, that cover a wide range of solutions in the mining equipment, aggregates equipment and the mineral consumables industry.

The company started operations in 1978 in India in collaboration with Skega AB, Sweden. Later, promoter Madan Mohan Mohanka acquired the entire equity stake of Skega AB in the company in 2001.

The company gets maximum business from abroad. It has six manufacturing sites, including three in India, at Dahej in Gujarat, and at Samali and Kalyani in West Bengal, and three sites in major mining hubs of Chile, South Africa and Australia.

The overseas business, including North America, South America, EMER (Europe, Middle East and Russia), Africa, and Asia Pacific, constituted 84.48 percent, and 86.42 percent of revenue in June 2021 quarter and FY21, respectively.

The company’s end customers are mineral processing sites involved in gold and copper ore beneficiation, accounting for 34.92 percent and 27.25 percent of its sale of products as an average of last three fiscals.

Financials

On a consolidated basis, the company posted revenues of RS 856.68 crore on FY21 against the revenues of RS 695.54 crore in FY20, a YoY growth of 23 percent. Consolidated revenues for FY 19 came in at RS 643.01 crore.

Also Read : Tega Industries IPO opens on December 1, price band to be released soon

The company posted a net profit of RS 136.41 crore in FY21 as against a net profit of RS 65.5 crore in FY20, a YoY jump of 108 percent. The net profit for FY19 stood at RS 32.67 crore. For the first quarter of FY22 ended on June 30, 2021, it has earned a net profit of RS 11.88 crore on a turnover of RS179.39 crore.

Key Risks

The company competes with strong multinational companies for its product and service portfolio. Though the competition is limited at international level, it comes from both the organized and unorganized players both domestically and internationally.

Promoters and Management

Madan Mohan Mohanka is one of the promoters of the company, and the chairman and executive director. He has been associated with the company since its incorporation.

Mehul Mohanka is one of the promoters, and the managing director and group CEO of the company. He is associated with the mining and construction equipment division of Confederation of Indian Industry as the chairman and is the co-chair of the CII national committee on mining.

Syed Yaver Imam is the executive director of the company, while Hemant Madhusudan Nerurkar, Jagdishwar Prasad Sinha, Madhu Dubashi and Rudolph Michael Edge are the independent directors.

Key managerial personnel include Manoj Kumar Agarwal, who is the director for global finance and chief financial officer of the company,

Manoj Kumar Sinha is the director for operations, Kanjanabha Bhattacharyya is the president of corporate strategy, Bhanu Sharma is the vice-president of human resources and administration, and Sudipta Bhowal is the general manager for legal as well as the company secretary.

GMP, Listing and Allotment Date

The IPO is commanding a premium of RS 310 per share in the grey market as per IPO Watch. The share allotment will get finalized by December 8. The unsuccessful investors will get refunds in their bank accounts by December 9, while the successful investors will get shares in their demat accounts by December 10.

Trading in the Tega Industrie’s equity shares on the BSE and NSE will commence on December 13.

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