Kolkata-based Tega Industries made a stellar debut on bourses on Monday with a premium of over 66 per cent. The scrip listed at Rs 760 on the BSE against the issue price of Rs 453. On the other hand, it got list at Rs 753 on the National Stock Exchange (NSE).
Market watchers advised new investors to wait for a dip before taking any position in Tega Industries. Earlier, the initial public offering (IPO), which opened for subscription on December 1, got subscribed by 219.04 times on the last day of the bidding process on December 3.
The share sale received bids for 209.58 crore equity shares against an offer size of 95.68 lakh shares. The portion for qualified institutional buyers (QIB) saw the highest ever subscription of 215.45 times at least in a decade. The non-institutional investors (NII) category was subscribed 666.19 times and the portion reserved for retail investors was subscribed 29.44 times.
Post listing Parth Nyati, founder, Tradingo said, “The company might perform much better going forward if this momentum continues. New investors can wait for a dip to buy, while long-term investors should hold this stock. Those who have received the allotment should keep a stop loss of Rs 690.”
Established in 1976, the company is a leading manufacturer and distributor of specialised, critical, and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry. Globally, Tega industries are the second largest producers of polymer-based mill liners, based on revenues for the year 2020.
Aayush Agrawal, senior research analyst-merchant banking, Swastika Investmart said, “The fundamentals of the company are sound whereas valuations are also attractive. It witnessed strong sales and profit growth with a rise in margins in recent years and it has healthy cash flows. The outlook for the industry is bullish therefore long-term investors should hold this company into their portfolio.”
Astha Jain, senior research analyst, Hem Securities advised booking one-third of the profit post listing. “The company has sound fundamentals with attractive valuations. So, one can keep the rest of the shares of Tega Industries for the longer term.”
Also read: Tega Industries makes stellar market debut, share lists at 67% premium to issue price
