New Delhi: Amidst a super busy IPO season and following better-than-expected listing of Star Health and Allied Insurance, Tega Industries is all set to debut at Dalal Street on Monday. The company is set for a decent listing pop, suggests data from grey market. Shares of Tega Industries are commanding a premium of 65-70 per cent or Rs 300-320 per share in the unofficial market, over its issue price of Rs 453 apiece.
The IPO of Tega Industries was open for subscription between December 1-3 in the price range of Rs 443-453 per share. The lot size was fixed at 33.
The Rs 619.23 crore public offering received a super solid response from investors as the issue was subscribed more than 219 times at the end of the three-day bidding process.
The quota reserved for qualified institutional bidders was subscribed 215 times, the most by the bidder segment in the last one decade. The HNI portion fetched 666 times bids, whereas the retail allocation was subscribed over 29 times.
Aprajita Saxena, research analyst at Trustline Securities, said the company has a leading position on account of good quality of business with low leverage, high cash in books, high margins and caters to marquee clients.
“With a reasonable valuation and positive sentiments around this IPO, we can anticipate the listing around Rs 750, which will give a decent listing gain,” she added.
Kolkata-based Tega Industries competes with strong multinationals for its products and services portfolio. Though the competition is limited, it comes from both organized and unorganized players.
The company, which plans to expand its manufacturing services both in India and overseas, has deep relationships with some of the world’s largest senior miners.
Tega is the second largest producer of polymer-based mill liners in the world on the basis of sales as of June 2021. It has a highly diversified revenue stream from various geographies of the world.
The premium for Tega Industries has eased down from Rs 390-400 level at the beginning of the issue as multiple ongoing IPOs have divided the attention of investors, with some digital plays stealing the spotlight.
Abhay Doshi, co-founder of UnlistedArena, said Tega Industries is poised for a strong listing but investors need to trim their expectations in the busy IPO season.
“Reasonable pricing made the issue attractive,” the avid grey market tracker said. “But the premium has cooled off from highs following a market correction and multiple IPOs.”
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