The IPO of Tega Industries has opened for subscription today (1 December 2021). The company’s IPO of Rs 620 crore is completely offered for sale. The price band of the IPO is Rs 443-445. Tega Industries is a Kolkata-based company that manufactures products for the mining industry. Its subscription will end on December 3. The company had already raised Rs 185.7 crore from 25 anchor investors before its IPO. These investors include SBI Mutual Fund, Goldman Sachs, ICICI Prudential, HDFC Trustee Company, Axis Mutual Fund, BNP Paribas. Anchor investors have been allotted 41 lakh shares on the upper band of Rs 453.
Price in gray market
The company’s shares are selling at a premium of Rs 400 in the gray market. Its premium is increasing in the gray market. Its premium was low in the gray market last week but now it has increased.
IPO News: The month of November superhit for companies entering the IPO market, raised a record capital of Rs 36,720 crore
How strong is the valuation?
It is recommended to subscribe by ICICI Direct. It says that its price for FY 2021 is 22 times of PE. The brokerage firm says that Tega’s strong market position, innovative products and high entry barrier will help in maintaining its margins. Therefore its shares can be bought. Religare Broking says that Tega Industries is the second largest producer of polymer based mill liners in the world. The company’s product portfolio includes over 55 mineral processing and material handling products. According to the broking firm, this company is seen in a very strong position in its value chain.
However, the dependence of the company on the international market is very high. 85 percent of its revenue comes from outside India. 50 per cent of the issue is reserved for QIBs and 35 per cent for retail investors. 15% is reserved for NIIs.