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Tega Industries plans to raise Rs 619.23 crore through an initial public offering. The subscription for the IPO will be open for three days starting from December 1, 2021. The price band is fixed between Rs 443 and Rs 453 per equity share. The face value is Rs 10 per equity share.
The offer comprises of Offer For Sale and the net proceeds will be credited to the selling shareholders. The IPO listing is likely to be on December 13, 2021. Meanwhile, the allotment date is expected to be on December 8, 2021 and Link Intime is the registrar for the IPO where the allotment can be checked.
Company Summary
Tega Industries is 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.
The company has six manufacturing facilities which includes three in India – Dahej in Gujarat and Samali and Kalyani in West Bengal. The other three sites are located in major mining hubs such as Chile, South Africa and Australia, with a total built-up area of 74,255 sq. mts. Their facilities in Chile give the company access to the South American markets including Chile, Peru and Bolivia
The company is the second largest producers of polymer-based mill liners based on revenues as of June 30, 2021, according to Frost & Sullivan report.
The company’s product portfolio comprises more than 55 mineral processing and material handling products. Their wide product portfolio includes specialized abrasion and wear-resistant rubber, polyurethane, steel and ceramic based lining components, used by our customers 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 our customers.
For the company, sale of its products constituted 95.08% of its average revenue from operations in the last three fiscal year.
Operating revenue from international markets constituted 86.42%, 85.92% and 85.83% of their total revenue from operations in fiscal years 2021, 2020 and 2019, respectively.
Company Strengths
- A leading producer of specialized and “critical to operate” products, with high barriers to replacement or substitution.
- The company is not affected by the international or domestic mining capital expenditure cycles, as its products cater to after-market spends, providing recurring revenues.
- High value addidtion and technology intensive products, backed by strong R&D with a focus on quality control.
- Well established player with marquee customer base across the world, strong global manufacturing and sales capabilities.
- Consistent growth, helped by operational efficiency and repeat business.
- Experienced management team supported by large skilled work force.
Company Financials
For the year/period ended (Rs in crore) | ||||
Particulars | Apr-Jun 2021 | FY2021 | FY2020 | FY2019 |
Total Assets | 1056.17 | 1018.34 | 887.32 | 790.27 |
Total Revenue | 179.39 | 856.68 | 695.54 | 643.01 |
Profit After Tax | 11.88 | 136.41 | 65.54 | 32.67 |
Company Promoters
Madan Mohan Mohanka, Manju Mohanka, Manish Mohanka, Mehul Mohanka and Nihal Fiscal Services Private Limited are the promoters of the company.
Purpose of the IPO
- Tega expects that the IPO listing will enhance their visibility as well as brand identity and provide liquidity to its existing shareholders.
- The IPO listing will also provide a public market for its equity shares in India.
- Tega will not receive any proceeds from the Offer For Sale. All proceeds from the issue will go to the selling shareholders.
IPO Details
IPO Opening Date | December 1, 2021 |
IPO Closing Date | December 3, 2021 |
Issue Type | Book Built Issue IPO |
Face Value | Rs 10 per equity share |
IPO Price | Rs 443 to Rs 453 per equity share |
Market Lot | 33 Shares |
Minimum Order Quantity | 33 Shares |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount (Cut-off) |
Minimum | 1 | 33 | Rs 14,949 |
Maximum | 13 | 429 | Rs 194,337 |
IPO Allotment Details
Tega IPO allotment date is Dec 8, 2021, and the expected return of refund is on Dec 9, 2021.
You can check your allotment in BSE or Linkintime