Tega Industries shares made a stellar debut on the stock exchanges today amid bullish market breadth. Shares of the industrial machinery firm began trading at Rs 753 per share or 66.23% above the IPO price of Rs 453 per share. IPO investors pocketed a return of Rs 300 per share on listing. Tega Industries IPO had garnered positive response from the investors earlier this month. The Rs 619 crore IPO, which was entirely an offer for sale by existing investors, was subscribed 219 times with all investor categories oversubscribing their portion of the issue. On listing, the company had a market capitalization of Rs 4,991 crore.
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Tega Industries is a leading manufacturer and distributor of specialized ‘critical to operate’ consumables products for the global mineral beneficiation, mining and bulk solid handling industry, according to analysts at Choice Broking. The brokerage firm had a ‘Subscribe’ rating to the IPO while valuing the company at P/E of 22x on FY21 EPS on the higher price band of Rs 453.
Post IPO, the promoter and promoter group shareholding in Tega Industries has dropped to 79.17% from the pre-IPO 85.17% while public shareholding has increased to 20.83% from the 14.83%. Tega Industries will not receive any funds raised through the IPO as it is an OFS.
Tega Industries has seen its revenue grow at 12.7% CAGR between financial year 2018-19 and 2020-21. The company had reported operating revenue of Rs 805 crore during the previous fiscal year. Meanwhile, the Net profit has grown 104% during the same period. Tega Industries had reported net profit of Rs 32.7 crore in the fiscal year 2018-19, which has increased to Rs 136.4 crore in the previous financial year.