Tega Industries Ltd IPO

Closed

IPO Subscription Details

  • Open Date 01 Dec
  • Close Date 03 Dec
  • Lot Size 33
  • IPO Size ₹ 619.23 Cr
  • IPO Price Range ₹ 443 to ₹453
  • Min Investment ₹ 14,619
  • Listing Exchange NSE, BSE
  • Basis of Allotment 08 Dec
  • Refunds 09 Dec
  • Credit to Demat Account 10 Dec
  • Listing Date 13 Dec

Tega Industries Ltd IPO Subscription Status

 

Category Subscription Status
Qualified Institutional (QIB) 215.45 Times
Non-Institutional (NII) 666.19 Times
Retail Individual 29.44 Times
Total 219.04 Times


Tega Industries IPO Subscription Details (Day by Day)

Date QIB NII Retail Total
December 01, 2021 17:00 0.07x 4.17x 7.51x 4.76x
December 02, 2021 17:00 3.35x  20.48x  17.04x  13.87x 
December 03, 2021 17:00 215.45x 666.19x 29.44x 219.04x

IPO Synopsis

Tega Industries IPO will open for subscription between December 1 and December 3. The listing date has been set as December 13, 2021. The IPO consists of only an offer for sale of 13,669,478 equity shares. Madan Mohan Mohanka will offload 33,14,657 equity shares, 6,62,931 shares will be offloaded by Manish Mohan and lastly, Wagner Ltd will offload around 96,91,890 equity shares.

The book running lead managers to the issue are JM Financial and Axis Capital. As of now, Madan Mohan, Manish Mohan and Wagner Ltd hold a stake of 13.07%, 11.98% and 14.62% respectively. The IPO size could range between Rs.750-700 crore, depending on the market. 35% is set as the retail allocation for this issue. The pre-IPO shareholding stands at 85.17%.
 

Objectives of the issue:

The main objective of this issue is to benefit from the listing in the stock exchanges.

About Tega Industries Ltd

Tega Industries, established in 1976, is a leading manufacturer and distributor of specialized, recurring and critical consumable products for global mineral benefication, mining and bulk solids handling industry. On the basis of revenue, in 2020, Tega Industries is the second largest producer of polymer-based mill liners.

The company has a very wide portfolio that offers 55 mineral processing as well as handling products, including; a specialized abrasion and wear-resistant rubber, screening, grinding and material handling. The mill liners that the company manufactures are- DynaPrime, DynaSteel, DynaPulp and DynaWear.

Tega Industries has 3 manufacturing sites in India at- Dahej in Gujarat, Samali and Kalyani in West Bengal and 3 manufacturing sites out of India in- Chile, South Africa and Austrailia. The total size of the 6 facilities is 74,255 square meters. The company has a presence in 513 installation sites across 70 countries.

They are further planning on expanding their operation in North America, South America, Australia and South Africa. A huge part of the revenue comes from outside India. Tega collaborated with Skega AB, Sweden in 1978.

Particulars

FY21

FY20

FY19

Revenue from operations

805.5

684.8

633.7

PAT

136.4

65.5

32.67

EPS

24.10

11.57

5.76

 

Particulars

FY21

FY20

FY19

Total Assets

1018.33

887.3

790.26

Equity share capital

57.60

57.60

57.60

Total borrowings

86.21

95.10

59.73

 

The ROCE for the years FY21, FY20 and FY19 are 24.67%, 11.17% and 11.12% respectively. The EBITDA margin for the same period stands at 27.86%, 16.85% and 16.45%.

The products cater to the after market spend of a mineral processing unit, which is a recurring cost. Hence, in FY21, 79.29% of the sale of products and services were from recurring orders.


IPO Key Points

  • Strengths:

    1. Tega Industries is the second largest producer of critical to operate products and the fact that they are very hard to substitute, increases the importance of the company’s products.
    2. The products of the company are backed by very strong R&D and are technology intensive products. The products are built to suit and not not off the shelf.
    3. A huge sales network with 18 overseas and 14 domestic sales offices, with 158 dedicated members in the sales and servicing team.
    4. A very skillful and diverse workforce supported by a strong and qualified senior management team.
    5. The company is planning many expansion schemes, which will help them achieve economies of scale.

  • Risks:

    1. Due to a large part of the operations taking place outside the country, the company is also susceptible to the risks of the other foreign countries, which can have an adverse affect on the business.
    2. If there is any form of incompetence or a lack in management of the sales team in both India and abroad, it could prove to be disastrous for the company’s financials.
    3. The company is wholly dependent on third parties for raw materials, distribution of the end product. If there any disruptions or problems in the quality of these services, it can prove to be very harmful to the company.
    4. The pricing and supply of the products will be affected negatively, if there is any shortage or increase in price of the raw materials.
    5. The depreciation of Rupee would lead to high fluctuations in the exchange rate in currencies in which the company has borrowings or business, which is a potential risk.

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

IPO FAQs

What is the issue size of Tega Industries IPO?

Tega Industries IPO issue size is Rs.619.3 crore. 

How many Tega Industries shares will I get in 1 lot?

1 lot of Tega Industries IPO has 33 shares. 

When will the share be listed on the stock exchanges?

On December 13th, 2021, Tega Industries will be listed on the stock exchanges.

What is the price of each share going to be?

The price range set for each share of Tega Industries, is Rs.443- Rs. 453. 

Who is the registrar to the offer?

Link Intime India is the registrar to the Tega Industries IPO.

What is the post issue shareholding of the promoters of Tega Industries?

The post issue shareholding will stand at 79.17%.

How do I check the allotment status of Tega Industries?

Way to check 1-  First you need to go to the registrar’s site- Link Intime India and then visit the IPO allotment page. From the drop down menu, select Tega Industries . Then, enter your PAN card details and select the application type- ASBA or Non-ASBA and enter the required details. After this the status is displayed on the screen.

Way to check 2- Visit the BSE application website page, select equity and then select Tega Industries from the drop down menu. After entering your PAN card details and application number, the status is displayed on the screen. 

What is the minimum investment required?

The minimum investment required to apply for the Tega Industries IPO is Rs.14,949.
It is the upper range of the IPO price i.e. Rs.453*33 shares (1 lot).  Minimum investment in an IPO is the amount of money that you need to invest in order to receive 1 lot of shares of the IPO. The number of shares in 1 lot varies from IPO to IPO but normally, the minimum investment value is calculated by multiplying the number of shares in 1 lot with the upper price range of the IPO price per share. 

Contact Details of Tega Industries Ltd IPO

Contact Information

Address

Tega Industries Limited
147, Block-G, New Alipore,
Kolkata 700 053,
West Bengal, India

Phone: +91 33 3001 9000
Email: compliance.officer@tegaindustries.com
Website: https://www.tegaindustries.com/

Tega Industries Ltd IPO Register

Address

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: tega.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Tega Industries Ltd IPO Lead Manager

Axis Capital Limited
JM Financial Consultants Private Limited