Tega Industries, a manufacturer of consumables for the mining industry has opened its IPO on Wendesday.
The three-day initial public offering (IPO) will open on December 1 and conclude on December 3, the company announced.
The IPO is purely an offer of sale 1,36,69,478 equity shares by promoters and an existing shareholder.
As a part of the offer for sale, promoters Madan Mohan Mohanka will offload up to 33.14 lakh equity shares and Manish Mohanka will sell 6.63 lakh equity shares.
At the upper end of the price band, the initial public offering is expected to fetch Rs 619.22 crore. Retail investors can bid for a minimum of 33 shares with an investment of Rs 14,949 per share.
In addition, Wagner, an affiliate of the US-based private equity firm TA Associates, will offload 96.92 lakh equity shares through the offer for sale.
The company’s shares were trading at a premium of Rs 310 per share in the grey market.
Meanwhile, here is what industry analysts say about Tega Industries IPO:
According to a report in Business Today, the brokerage house said, “We believe that the company is well placed across the value chain of mineral processing as it provides a wide range of products and solutions which are critical at different stages of mineral processing.
Further, its leadership position, strong R&D, track record of developing an innovative product portfolio and marquee global customers are key positives for the company.”
In the same report, Reliance Securities said the market size of global crushing, screening, and mineral processing equipment markets, which was at $20 billion in 2020, is estimated to clock 6.3 per cent CAGR over the next 10 years to around $37 billion. This offers sustained growth visibility for Tega Industries (TIL). Additionally, the strong balance sheet, industry’s leading return ratio and strong cash generation ability offer an edge over peers.
Ravi Singh, Head of Research & Vice President at ShareIndia
Advising investors to subscribe Tega Industries IPO for the long term, Singh was quoted by Livemeint as saying, “there is significant scope for new mining capacities and considerable opportunities for future discoveries of sub-surface deposits of metals in India. India’s mineral production of most of the important minerals is also showing positive growth during 2021. Since Tega Industries deals in the manufacturer of consumables concerning the mining industry, investors may include this IPO in their portfolio for long term gains.