Tega Industries Sees Bumper Listing on Debut, Stocks Open At 68 Per Cent Premium

The Rs 619-crore IPO, which was entirely an offer for sale by existing investors, was subscribed 219 times with all investor categories oversubscribing their portion of the issue

The IPO of Tega Industries was the sixth-most subscribed IPO in India and it had received the third-highest subscription this year. Image: Getty

New Delhi:  The shares of Tega Industries made a stellar debut on the stock exchanges on Monday amid bullish market breadth, with its equity shares listed at Rs 760, a 68 per cent premium over its issue price of Rs 453 per share on the NSE. On the BSE, the stock opened at Rs 753, a 66 per cent higher versus its issue price, the exchange data showed.

The initial public offering (IPO) of the industrial machinery company had garnered positive response from the investors earlier this month. The Rs 619-crore IPO, which was entirely an offer for sale by existing investors, was subscribed 219 times with all investor categories oversubscribing their portion of the issue. On listing, the company had a market capitalisation of Rs 4,991 crore.

After listing, the stock of the firm 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 total 4.1 million shares changed hands at the counter on the NSE.

The promoter and promoter group shareholding in Tega Industries has dropped to 79.17 per cent from the pre-IPO 85.17 per cent, while public shareholding has increased to 20.83 per cent from the 14.83 per cent. Tega Industries will not receive any funds raised through the IPO as it is an offer for sale (OFS).

Tega Industries’ IPO had received a robust response from the all category investors with demand for shares exceeding those on offer. This 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.

Tega Industries has seen its revenue grow at 12.7 per cent CAGR between FY18-19 and FY20-21. The company had posted operating revenue of Rs 805 crore in the previous fiscal year. The net profit has grown 104 per cent during the same period. It had reported net profit of Rs 32.7 crore in FY18-19, which has increased to Rs 136.4 crore in the previous financial year.