Financial Insights

Tega Industries IPO

Tega Industries, the topmost manufacturer and distributor of special and important regular consumables for the global mining, mining and bulk handling industries, began its first public offering on December 1st till December 3rd. The IPO seems to have all the right elements for the December 13th bumper listing during the subscription period.

The IPO broke the best subscription record in the Qualified Institutional Buyer (QIB) category in the last decade. On December 3rd, the last day of the subscription, QIB portion was subscribed 215.5 times. The issue oversubscribed by 219.0 times.

HDFC Asset Management Company Ltd achieved the highest-ever subscription to QIB shares with an oversubscription of 192.3 times from QIB investors at the initial public offering, which began in July25 to July 27 2018. This was followed by Indigo Paints (189.6 X) and Tatva Chintan (185.2 X) in QIB portion of subscriptions. A strong response to the QIB category shows that investors are ready to invest their good money in high quality IPOs that means QIB is interested in new businesses with a few or no listed companies.

The offer size of 95.68 lakhs in QIB category received a bid of 209.36 cr. equity shares. The IPO is in high demand from all investors. Retail units were subscribed 29.4 times and non-institutional investors were subscribed 666.2 times.
It was entirely an offer for sale (OFS) of 1.37 equity shares as the primary offer of the company off loaded by its existing shareholders and promoters. Rs 443-453 per share was the price band fixed for the offer.

By November 30, the company had raised Rs. 186 crores from 14 anchor investors who were allotted Rs.41.0 lakh equity shares at a cap of Rs. 453 per share.

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