Tega Industries IPO

 

Tega Industries is a major producer and retailer of specialist ‘critical to operate’ and recurring consumable solutions for the worldwide mineral beneficiation, mining, and bulk solids handling sectors on the basis of revenues for calendar year 2020. Tega Industries IPO likely to hit the Stock market in 01 December 2021.

About Tega Industries

Tega Industries is the world’s second-largest manufacturer of polymer-based mill liners, according to sales for calendar year 2020.

Their broad product offering of specialised abrasion and wear-resistant rubber, polyurethane, steel, and ceramic based lining components.

It is utilised by their clients throughout varying phases of mining and mineral processing, screening, grinding, and material handling.

It provides broad options to marquee international customers in the mineral beneficiation, mining, and bulk solids handling industries.

Journey

Their engineering capabilities have developed over decades, allowing them to consistently offer our high-quality, complex manufactured items within specified timelines.

It allowing them to reduce downtime and maximise operational efficiency for their clients, as well as forge strong relationships with them that lead to high recurring revenues.

They began operations in India in 1978, with a foreign partnership with Skega AB of Sweden. Madan Mohan Mohanka purchased Skega AB’s complete equity stake share in their company in 2001.

Mehul Mohanka (CEO & MD) has involved in the Company’s business from last 18 years. Wagner Ltd., a subsidiary of TA Associates, a worldwide private equity firm, provided them with funds in 2011.

Products

More than 55 mineral processing and material handling products are present in their product portfolio. The sale of items accounts for 95.08 percent of total revenue from operations, on average, during the previous three fiscal years.

In the mining, aggregates, and mineral consumables industries, their mineral processing and material handling product portfolio includes a broad number of solutions.

Consumables for the mining and mineral processing industries are among the goods they serve.

Chute liners, grinding mill liners, trommels and screens, hydrocyclones, pumps and flotation components, and conveyor items are among their offerings.

Production Plants

With a total built-up area of 74255 sq. mts, they have 6 production facilities, three in India, at Dahej in Gujarat and Samali and Kalyani in West Bengal, and three in significant mining centres of Chile, South Africa, and Australia.

Their plants in India serve the domestic and international mineral processing and materials handling markets, whereas their facilities in Chile, South Africa, and Australia serve the national and regional mineral processing and materials handling sectors.

In addition, their joint venture in India with the Hosch Group’s U.K. branch specialises in precision conveyer belt cleaning and serves a variety of sectors in India.

Tega Industries IPO

Tega Industries Limited, headquartered in Hyderabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 13,669,478 equity shares on 17 August 2021.

The Offer doesn’t includes any fresh equity shares and There is an offer for sell(OFS) of 13,669,478 equity shares by the promoters mentioned in the DRHP.

They got approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 02 November 2021.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		1,018.34	887.32	790.27
Total Revenue		856.68	695.54	643.01
Profit After Tax		136.41	65.50	32.67

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	24.10	20.48	3
Financial Year 2020	11.57	9.84	2
Financial Year 2019	5.76	4.90	1
Weighted Average	16.87	14.34

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the key parameters that contribute into determining the Offer Price:

1. A prominent manufacturer of specialised and “essential to operate” products with significant barriers to substitution and replacement.
2. Their goods appeal to after-market spending, generating ongoing income, therefore we’re not affected by mining capital cycles.
3. Products with a high value add and a high level of technology, backed by excellent R&D and an excellent focus on quality assurance.
4. Long-standing market participant with a significant worldwide client base and production and sales skills.
5. Consistent growth, characterised by strong repeat business and operational excellence.
6. A seasoned executive team is backed up by a large, multicultural, and well-trained workforce.

Tega Industries IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	AIA Engineering Limited	32.15

Tega Industries IPO Details

IPO Opening Date	01 December 2021
IPO Closing Date	03 December 2021
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	443 to 543
Min Order Amount	14949
Listing At	BSE, NSE
Issue Size	13,669,478 equity shares
Fresh Issue	0
Offer for Sale	13,669,478 equity shares

Tega Industries IPO Date

Tega Industries IPO opening date is 01 December 2021, and the closing date is 03 December 2021. The Tega Industries issue may list in 13 December 2021.

IPO Opening Date	01 December 2021
IPO Closing Date	03 December 2021
Basis of Allotment Date	08 December 2021
Initiation of Refunds	09 December 2021
Credit of Shares to Demat Account	10 December 2021
IPO Listing Date	13 December 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot

Tega Industries IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Tega Industries IPO.

Tega Industries IPO GMP

Tega Industries IPO Grey Market Premium is 310.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
12 December 2021	310	2800	300
11 December 2021	300	2200	250
10 December 2021	307	2800	300
09 December 2021	340	4500	450
08 December 2021	358	3800	350
07 December 2021	322	3100	300
06 December 2021	350	4800	450
05 December 2021	413	6600	650
04 December 2021	430	7100	700
03 December 2021	422	7600	750
02 December 2021	415	7200	700
01 December 2021	375	6300	600
30 November 2021	289	5900	600
29 November 2021	253	4500	450
28 November 2021	247	4900	500
27 November 2021	230	4200	400
26 November 2021	212	3700	350

Tega Industries IPO Review

if you are looking for the answer that Tega Industries IPO is good or bad then here is the answer you can apply for listing gain as well as for long term. It’s valuations are cheaper when you compare it to listed peers.

Tega Industries IPO Risk

• Their worldwide production plants, sales, and operations subject them to the concerns of doing business in foreign nations, which might have a negative impact on their operations.
• They rely on a few major suppliers for specific raw materials, but they don’t have long-term contracts or special partnerships with them.
• They’ve been unable to discover some of their company’s historical documents.
• Their inability to recognise and react to changing market trends, technology developments, and customer preferences might have a negative impact on their company.
• The bulk of their clients do not have long-term contracts with them.
• The impact of COVID-19 on their business is unknown and impossible to anticipate.

Other Threats

• Their Company, Promoters, and Directors are involved in legal procedures, and a negative decision in any of these proceedings might have a negative impact on their company.
• Their Joint Venture may fail to meet its commitments, and its interests may vary from ours, resulting in a negative impact on their company.
• Several of our subsidiaries have lost money in the past and may lose money in the future.
• Failure to acquire or renew required regulatory approvals, licences, or permits in a timely or timely way, or at all, may have a negative impact on their business.
• They may be subject to stricter labour laws or other industry norms, which might raise their compliance costs and have a negative impact on their business.

Presence

Their in-house sales and distribution network in all of the main geographies assists them in continuously adding new sites, resulting in a diverse income stream with minimal concentration.

They also have 18 worldwide and 14 local sales offices, all of which are conveniently placed near their main clients and mining locations.

They are well positioned to cater to their clients around the globe, which include major multinational mining firms and also small and medium-sized companies in the mining and mineral beneficiation sector in both established and evolving areas, with on-ground existence in all significant mining areas.

Acquisition

They acquired Tega Industries Africa (Pty) Ltd. (formerly, Beruc Equipment (Proprietary) Limited) in FY 2007 in order to expand their global operations.

Tega Industries Africa (Pty) Ltd. (formerly, Beruc Equipment (Proprietary) Limited) is a South African-based producer and supplier of grinding mill liners and screen media, among other things, and this gave them entry to production ability and clients in Africa’s mining and industrial markets.

In FY 2011, they extended their expansion by acquiring Tega Industries Chile SpA (previously Acotec SA) (“Tega Chile”), a pump, screen media, and wear product manufacturer headquartered in Chile. Their sites in Chile offer them exposure to the markets of Chile, Peru, and Bolivia in South America.

R&D

Their in-house R&D and production facilities, which include design, process engineering, and manufacturing capabilities, enable them to switch around customised designs in a timely manner, provide complete solution and higher service levels to their clients, and cross-sell various products to them.

They develop and adapt their products for every customer site individually, taking into account a variety of factors.

These factors are ore type, ore size, tonnage, breakage rate, power or rotating speed, pH, temperature, humidity, size, sound levels, and health and safety regulations.

Their solutions are carefully engineered “built-to-suit” rather than “off-the-shelf” due to their ongoing design innovation.

Tega Industries IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Tega Industries IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
01 December 2021	1	0.07	4.17	7.51	N/A	4.67
02 December 2021	2	3.6	19.2	16.8	N/A	13.5
03 December 2021	3	215.45	666.19	29.44	N/A	219.04

Promoters

• Madan Mohan Mohanka
• Manju Mohanka
• Manish Mohanka
• Mehul Mohanka
• NFSPL

Promoters’ Holding

Pre Issue Share Holding	95.76%
Post Issue Share Holding