Tega Industries, a manufacturer of consumables for the mining industry, opened its Rs 619-crore initial public offering (IPO) for subscription today. The IPO is completely an offer for sale (OFS) of 1,36,69,478 equity shares by an existing shareholder and promoters of the company. At present, promoters have an 85.17 percent stake in the company, while US-based Wagner holds a 14.54 percent stake.

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Here are key things to know about Tega Industries IPO

Important dates: The bidding process begins today, i.e., December 1 and will conclude on December 3. Shares of the Kolkata-based company will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), tentatively on December 13. The maximum investment for the public issue is capped at Rs 1,94,337, while the minimum investment is Rs 14,949. The tentative date for allotment of shares is December 8.

IPO price band: The shares will be available for bidding in a price band of Rs 443-453. The IPO is likely to fetch Rs 619.22 crore at the upper end of the price band.

Lot size: Bidders will be able to apply in lots in this public issue with one lot consisting of 33 company shares. One bidder can apply for a maximum of 13 lots.

Fund utilisation: The company aims to avail the benefits of listing the equity shares on stock exchanges via this issue.

Offer for sale: As part of the OFS, Wagner will offload 96.92 lakh equity shares, while two promoters Madan Mohan Mohanka and Manish Mohanka will offload 33.14 lakh equity shares and 6.63 lakh equity shares, respectively.

Company profile: The company offers a comprehensive solution to global clients in the mineral beneficiation, mining, and bulk solids handling industry. Globally, it is the second-largest producer of polymer-based mill-liners as of June 2021, on basis of revenues. Its portfolio includes over 55 mineral processing and handling products, covering a wide range of solutions in the mining and mineral consumables industry.

Its maximum business comes from abroad and its manufacturing sites are located across the globe in India, Chile, Australia, and South Africa. The revenue from the overseas business made up nearly 85 percent of the total revenue in June 2021 quarter.

Financials: Its revenues stood at Rs 856.68 crore in FY21, up over 23 percent from Rs 695.54 crore in FY20. Its consolidated revenue stood at Rs 643.01 crore in FY19.

The company's net profit has seen a surge of 108 percent in FY21, as it posted a profit of Rs 136.41 crore against Rs 65.5 crore in FY20. In FY19, its profit stood at Rs 32.67.

Key risks: Though sparse, the competition comes from both organised and unorganised players, internationally and domestically.

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(Edited by : Yashi Gupta)

First Published:Nov 29, 2021 8:47 PM IST