Kolkata-based Tega Industries has fixed a price band at Rs 443-453 per share for its maiden public offer. The initial public offering (IPO) of Tega Industries Limited ('Company') will open on Wednesday December 01, 2021 for Subscription and close on Friday, December 03. Investors can bid for a minimum of 33 equity shares and in multiples of 33 shares thereafter.
The company 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, on the basis of sales as of June 30, 2021.
The IPO is entirely an offer for sale of up to 1,36,69,478 Equity Shares ("Offer for Sale") by the Selling Shareholders, up to 33,14,657 equity shares by Madan Mohan Mohanka, up to 6,62,931 equity shares by Manish Mohanka (Together with Madan Mohan Mohanka) (the "Promoter Selling Shareholders") and up to 96,91,890 by Wagner Limited, (Investor selling shareholders). The Company will not receive any proceeds from the Offer.
The Company and the Selling Shareholder have, in consultation with the book running lead manager to the Offer, considered participation by Anchor Investors in accordance with the SEBI ICDR Regulations, whose participation shall be one Working Day prior to the Bid/Offer Opening Date, i.e. Tuesday, November 30, 2021. The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made through the Book Building Process, in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.
Tega Industries offers comprehensive solutions to marquee global clients in the mineral beneficiation, mining and bulk solids handling industry, 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.
Globally on the basis of revenues, Tega Industries are the second-largest producer of polymer-based mill liners as of June 30, 2021.
Its product portfolio comprises more than 55 mineral processing and material handling products, that covers a wide range of solutions in the mining equipment, aggregates equipment and the mineral consumables industry.
Revenue from operations increased 17.62% from Rs 684.85 crore in fiscal 2020 to Rs 805.52 crore in fiscal 2021, primarily attributable to an increase in the sale of products, while its net profit increased from Rs 65.50 crore in fiscal 2020 to Rs 136.41 crore.
Axis Capital Limited and JM Financial Limited are the book running lead manager to the Offer ("BRLM").
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the red herring prospectus dated November 23, 2021 ("RHP") filed with the Registrar of Companies, Maharashtra at Mumbai ("RoC").