Tega Industries to make D-street debut today. Here's what to expect

Tega Industries IPO

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26 Aug, 2025 12:21

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Tega Industries, the second largest producer of polymer-based mill liners on revenues basis, is expected to start the first trade with a 30-70 percent premium over its issue price of Rs 453 per share considering healthy IPO subscription, reasonable valuations, consistent growth, and high repeat business, experts feel.

The initial public offering of the company witnessed stellar response from investors, subscribing 219.04 times during December 1-3, the third highest subscription amongst IPOs launched in the current year 2021 after Latent View Analytics and Paras Defence & Space Technologies.

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The portion set aside for qualified institutional buyers was subscribed 215.45 times, and that of non-institutional investors saw 666.19 times subscription, while retail investors portion was booked 29.44 times.

The company has raised Rs 619.23 crore through its public issue that was entirely an offer for sale by selling shareholders.

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"Looking at the overwhelming response from investors for the leading manufacturer and distributor of specialized critical products serving the global mineral, mining and bulk solids handling industry, we can expect a strong listing gain above 50 percent premium to its upper end of the IPO price Rs 453," said Prashanth Tapse, Vice President (Research) at Mehta Equities.

He further said the strong listing gains seem to be justified as IPO valuation was reasonably priced when compared with peers and unique replacement business model with long term visibility.

Sonam Srivastava, Founder at Wright Research seems to be more bullish on Tega as she feels Tega should list at a hefty 70-80 percent premium based on grey market rates.

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Tega shares were available at a price of Rs 753 per share in the grey market, a massive 66.2 percent or Rs 300 premium over issue price of Rs 453 per share, as per the IPO Watch and IPO Central.

The grey market is an unofficial platform, where the trading in IPO shares begin with the price band announcement and continues till the listing of shares on the bourses.

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Divam Sharma, Founder at Green Portfolio feels Tega can list at a premium of 30-50 percent, while Astha Jain, Senior Research Analyst at Hem Securities expects Tega Industries to list at more than 40 percent premium.

Tega Industries, a leading manufacturer and distributor of specialized ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining and bulk solids handling industry, on the basis of sales, has reported more than double the profit at Rs 136.4 crore in the financial year FY21, compared to Rs 65.5 crore in previous year.

Revenue in the year FY21 increased by 17.6 percent to Rs 805.52 crore, against Rs 684.85 crore in FY20. Profit for the June 2021 quarter stood at Rs 11.88 crore on revenue of Rs 173.2 crore.

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"Company's strong market position and entry barriers helped company maintain high margins over time. It has successfully maintained operational efficiency while completing and integrating acquisitions, joint ventures and strategic alliances, including company's acquisitions in Chile, South Africa and Australia," said Hem Securities.

Company's repeat business from existing mineral processing sites accounted for 74.29 percent of revenue from operations in FY21. In FY21, its return on capital employed (ROCE) was 24.76 percent and return on equity (ROE) was 22.23 percent.