Tega Industries IPO Listing, Allotment, Price Band, GMP, And Detailed Review

Table of Contents

Tega Industries Limited Introduction

Established in 1976, Tega Industries Limited a Kolkata-based company is coming up with an IPO of 13,669,478 equity shares from OFS. They are a leading manufacturer and distributor of specialized ‘critical to operating’ and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry

The company has 6 manufacturing sites, including 3 in India, at Dahej in Gujarat, and at Samali and Kalyani in West Bengal, and 3 sites in major mining hubs of Chile, South Africa, and Australia, with a total built-up area of 74255 Sq. mts.

What are the risk factors in Tega Industries IPO?

1. The company don’t have any long term supply agreements with the majority of customers

2. The company is involved in certain legal proceedings

3. The company have undertaken joint ventures and acquisitions, and if they underperform may adversely impact the company

4. The company subsidiaries have incurred losses in the past three years and may also incur losses in future

5. The company’s business is capital intensive, any insufficient capital requirements may hamper the company

6. The IPO proceeds from the offer from the sale(OFS) will directly go to the shareholders and will not benefit the company

7. The company has certain contingent liabilities which if materialized may adversely affect the business

8. The company has negative cash flows in the past and may show negative cash flows in the future too

Why to invest in Tega Industries IPO?

1. The company has shown continuous growth in revenue and its net profit for the past three years.

2. The company is the second-largest producer of polymer-based mill liners in terms of revenues

3. The company has six manufacturing facilities across the globe with marque global customers

4. The company has shown constant growth in margins

5. The company has a highly experienced management team

6. The company’s one of the promoter Madan Mohan Mohanka has 44 years of industry experience

What are the product offerings of Tega Industries Limited?

Mill liners

Mill liners are used in the grinding mills for the beneficiation of minerals. The various types of mill liners company
manufacture include DynaPrime, DynaSteel, DynaPulp, and DynaWear, all of which are their flagship products.

Trommels and Screens

Screens and trommels are used for the separation of particles according to size. company key products for the screens and trommels business includes Rapido

Hydrocyclones

Hydrocyclones are used for extracting or separating slurry particles, based on the overall particle weight while
consuming relatively lower power. The company’s key product for our hydro cyclones business is the Tega Cyclone.

Conveyor Products

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The company’s conveyor products include conveyor components used with conveyor belts. Their key conveyor products include a Spill-ex skirt sealing system, Centrax, and ceramic pulley lagging.

Services segment

The company’s Services segment offering ranges from undertaking specialized plant audit consultancy service for grinding and classification upgrades, supplying individual spare parts, to comprehensive solutions covering maintenance and operations

What are the objects of Tega Industries IPO net proceeds?

The IPO net proceeds consist of only an offer for sale and no fresh issue. The OFS is 13,669,478 Equity Shares. The total proceeds will go directly to the shareholders and the company will not be benefitted from the IPO issue.

What is the financial track record of Tega Industries?

  1. From the last three years company is showing consistent growth in revenue
  2. From the past three years company is showing consistent growth in Net profit
Financial Year EndedRevenue (₹ in Millions)PAT (₹ in Millions)EPS (₹)
March 20196,430.13326.704.90
March 20206,955.42655.049.84
March 20218,566.841,364.0520.48
Quarter June 20211,793.86118.82
Financials of Tega Industries IPO

Tega Industries IPO GMP today

As of 4th DEC 2021, the Tega Industries IPO GMP is Rs 410

Tega Industries IPO open & close date

Open date: Dec 01, 2021, Close date: Dec 03, 2021

Tega Industries IPO allotment & listing date

Allotment date: Dec 08, 2021, on Link Intime India Private Ltd, Listing date: Dec 13, 2021

Allotment can be checked through their registrar website Link Intime India Private Ltd,

Tega Industries IPO price band

Price rangeRs 443-RS 453
Minimum order quantity33 Shares
Tega Industries IPO price band

Tega Industries IPO valuation (under or overpriced)?

Calculating with its upper price band of Rs 453

Now, the EPS (earning per share) for the FY21 is 20.48 so the P.E ratio (price to earnings ratio) comes at 453/20.48= 22.11X

So, they are asking for a P.E ratio of 22.11x which is underpriced if we compare with its sectors P.E which is around 61X

Hence, Tega Industries valuation is underpriced

Tega Industries IPO good or bad? (Review)

They are a leading manufacturer and distributor of specialized ‘critical to operating’ and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry, even their past three years financial performance is good and growing consistently. The IPO pricing is also underpriced, So considering these factors investing is a good choice in Tega Industries for medium to long term investment.

Rating: 4.5 out of 5.

FAQ

Who are the peers of Tega Industries?

CRANEX, BEMCO HYDRAULICS, HITTCO TOOLS LTD, LLOYDS STEELS INDUSTRIES LTD, KILBURN ENGINEERING LTD, ARTSON ENGINEERING LTD, JAINEX AAMCOL LTD, ADVANCE METERING TECHNOLOGY LTD, GG AUTOMOTIVE GEARS LTD, GG AUTOMOTIVE GEARS LTD, NITIN FIRE PROTECTION INDUSTRIES LTD, etc

Who are the promoters of Tega Industries?

Madan Mohan Mohanka, Manju Mohanka, Manish Mohanka, Mehul Mohanka, and Nihal Fiscal Services Private Limited are the company promoters.

What is the promoter holding of Tega Industries?

Pre Issue Share Holding
85.17%
Post Issue Share Holding
79.17%

What is the Retail portion of Tega Industries IPO?

35%

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