Tega Industries has filed draft papers with the capital markets regulator SEBI to raise funds via an initial public offering (IPO). Sources said the IPO size could be in the range of Rs 700-750 crore.
The public offer of 1,36,69,478 equity shares comprises a complete offer for sale by selling shareholders. Promoters Madan Mohan Mohanka will sell up to 33,14,657 equity shares and Manish Mohanka will offload 6,62,931 equity shares through the offer for sale.
Investor Wagner, an affiliate of the US-based private equity firm TA Associates, will also sell its entire shareholding of 96,91,890 equity shares via the offer for sale. The company had received funding from Wagner in 2011.
The equity shares proposed to be offered by Wagner in the offer for sale will also include a maximum of 86,92,281 equity shares which will result upon conversion of 86,92,281 CCPP (cumulative convertible preference shares) held by Wagner, according to the draft red herring prospectus (DRHP).
The conversion of CCPP will be completed prior to the filing of the Red Herring Prospectus with the Registrar of Company.
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Tega Industries offers comprehensive solutions to marquee global clients in the mineral beneficiation, mining and bulk solids handling industry across different stages of mining and mineral processing, screening, grinding and material handling, including after-market spends on wear, spare parts, grinding media and power, which are regular operating expenses for customers.
Globally, Tega Industries was the second-largest producer of polymer-based mill liners in 2020 on the basis of revenues.
The company commenced operations in 1978 in India in collaboration with Swedish firm Skega AB. Madan Mohan Mohanka acquired the entire equity stake of Skega AB in the company in 2001.
Its individual promoters are Madan Mohan Mohanka, Manju Mohanka, Manish Mohanka and Mehul Mohanka. Mehul Mohanka, MD and CEO, has been involved in the company's business for the last 18 years.
Its product portfolio comprises more than 55 mineral processing and material handling products. The sale of products contributed on an average of 95.08 percent to the total revenue in the last three fiscal, while the sale of services and other operating revenue constituted 2.15 percent and 2.77 percent, respectively.
Axis Capital and JM Financial are the book running lead managers to the issue.
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