Tega industries is one of the leading names in mining industries incorporated in the year 1978. The company is a leading manufacturer and distributor of specialized ‘critical to operating’ and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry, based on sales for the calendar year 2020. The Firm, globally, is the second-largest producer of polymer-based mill liners, based on revenues for the calendar year 2020. The product portfolio of the company comprises more than 55 mineral processing and material handling products. At present, the firm has six manufacturing sites, including three in India, at Dahej in Gujarat, and Samali and Kalyani in West Bengal, and three sites in major mining hubs of Chile, South Africa, and Australia.
With a huge mark all over globally, the firm is all set to mark its presence in the Indian stock market by raising Rs619.23 crores through an initial public offering, setting a price band at Rs443-Rs453. The window for subscription will open from 1st December 2021, and the last date to apply for the Tega Industries IPO is 3rd December 2021. Allotment for the same will be done on 8th December, and listing on the exchange will take place on 13th December 2021. Retail investors can bid for a minimum of 1 lot comprising of 33 shares, with the value of Rs 14,949, and the maximum investment allowed for the retail investors are Rs194,337 accumulating to 13 lot of IPO aggregating to a total of 429 shares. Grey’s market premium for the IPO has accelerated to Rs310, as the IPO approaches its opening date.
The IPO is an entire offer for sale of 1,36,69,478 equity shares by promoters and an existing shareholder. As a part of this offer for sale IPO, promoters Madan Mohan Mohanka and Manish Mohanka will sell 33.14 lakh equity shares and 6.63 lakh equity shares, respectively. In addition to this, US-based private equity firm TA Associates will shed 96.92 lakh equity shares in this IPO. Book running lead managers for the IPO are Axis Capital and JM Financial, and registrar being the Link Intime India private ltd.
On the financial front Tega, industries have been constantly showing the rise in their net profit from year on year. Net profit went up by 108% in FY2021 to Rs1346.05 million from Rs 655.04 million earned in FY2020. To add to its financial positivity, the cumulative annual growth rate for the firm’s operating income was recorded at 10.04% for the past three financial years starting from FY2019 till FY2021.
Apart from being financially sound, the firm also has other strengths like it is One of the world’s largest producers of polymer-based mill liners. The product line of the firm caters to after-market spends providing recurring revenues.
All these above-stated reasons make Tega Industries IPO favorable. However, investors must do their homework before investing, as all the investments in the stock market are subject to market risk, that can’t be avoided.