Tega Industries IPO - 7 Things to Know
Tega Industries has been around in the polymers industry for over 45 years now. It focuses on material and mineral handling support systems with a portfolio of over 55 different products. Tega is tapping the IPO market next month and here is the gist of the IPO.
Seven interesting facts to know about Tega Industries IPO
1) Tega Industries essentially caters to the mining and abrasives industries with its specialized and proprietary polymer-based mineral handling products. It is among the world’s largest producers of polymer based mill liners.
2) Tega Industries has 6 manufacturing sites. Of these, 3 are located in India and 3 are abroad. In India, it has 1 site in Dahej, Gujarat and 2 in the state of West Bengal.
In addition, it has 3 manufacturing sites globally; one each in the mineral rich nations of Chile, Australia and South Africa. As of FY21, Tega derived 86.4% revenues from abroad.
3) The entire IPO will be an offer for sale. The company will offer 1,36,69,478 shares and the eventual size of the IPO will depend on the pricing that is expected to be announced in next couple of days.
Out of the 136.69 lakh shares on offer, promoters will offer 39.78 lakh shares while early investor, Wagner, will look to offload 96.92 lakh shares.
4) The Tega Industries IPO will open for subscription on 01-Dec and close on 03-Dec. The basis of allotment will be finalized on 08-Dec while the refunds will be initiated on 09-Dec.
The shares are expected to be credited to demat accounts by 10-Dec and the listing will be on 13-Dec.
5) The company is a robust profit making company. For FY21, Tega reported net sales of Rs.856.68 crore and net profits of Rs.136.41 crore implying net margins of a healthy 15.92%.
If you compare FY21 over FY19, then sales are up 33% while net profits are up a whopping 4.18 times.
6) Since it is an offer for sale, there will be no fresh funds coming into the company. However, some of the strengths that the company brings to the table include its robust financials, global customer base, leadership in the polymer based mill liner business, strong proprietary technology and R&D as well as global scale.
7) The issue will be lead managed by Axis Capital and JM Financial while Link Intime will be the registrars to the IPO.
While the final pricing and issue size are yet to be put out, the street expectation is an issue price of around Rs.453 and an issue size of Rs.619 crore.
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