Tega Industries IPO fully subscribed within one hour on Day 1 of bidding; all you need to know

Tega Industries opened its initial public offering (IPO) today, 1 December. The Kolkata-based manufacturer of the mining sector will conclude the three-day share sale on 3 December. As per news reports, the company has fixed a price band of Rs 443-453 per share for its maiden issue.

The initial public offer of the company was fully subscribed within the one hour of opening for subscription on Wednesday. The Rs 619.22-crore IPO received bids for 1,01,82,315 shares against 95,68,636 shares on offer, translating into 1.06 times subscription, according to NSE data.

Tega Industries is looking to raise up to Rs 619.22 crore from its IPO. Furthermore, investors can bid at least 33 equity shares and in multiples thereof.  Retail investors can invest a minimum of Rs 14,949 per lot while the maximum investment can be Rs 1,94,337 for 13 lots.

By selling to shareholders and promoters, Tega Industries IPO is an Offer for Sale (OFS) of 1,36,69,478 equity shares. However, the Kolkata-based company will not directly receive any proceeds from the IPO, as it is completely an Offer for Sale.

Renowned and ace promoters Manish Mohanka and Madan Mohan Mohanka will sell 6,62,931 equity shares and 33,14,657 equity shares, in the market. Also, investor Wagner, a partner of the US-based private equity firm TA Associates, would offload 96,91,890 equity shares through OFS.

Through this offer, the company will benefit from listing the equity shares on the stock exchanges. According to Kotak Securities, the company assumes that listing of the equity shares will improve Tega Industries’ visibility and brand. It will also provide liquidity to its existing shareholders.

The shares are expected to be listed on the Bombay Stock Exchange and National Stock Exchange on 13 December, while the share allotment is likely to take place on 8 December.

For the unversed, Tega Industries is a leading manufacturer and distributor of specialised products for mining, bulk solids handling industry and global mineral beneficiation.

The company is a producer of specialised products with high barriers to substitution or replacement. Additionally, it is the second-largest producer of polymer-based mill liners across the globe. Talking about the brand, it is a well-recognised one with experienced promoters.

Apart from providing complete solutions to the mining and bulk solids, the firm also handles marquee global clients via its wide product portfolio in mineral beneficiation.