Tega Industries shares jump for the first time today as the stock rises 728.90 on BSE today as compared to issue price 453. In comparison, the Sensex was up 0.6%. The initial public issue of 620 crores of Tega Industries Limited was subscribed 219.04 times. The non-institutional investors category was subscribed 666.19 times, qualified institutional buyers (QIBs) 215.45 times and retail individual investors (RIIs) 29.44 times.
The initial public offering was up to 1,36,69,478 equity shares and had a price range of 443-453 per share.
Before IPO, Tega Industries acquired 186 crores from anchor investors.
Tega Industries Global Minerals is a manufacturer and distributor of specialized ‘critical to operate’ and recurring consumable products for the beneficiation, mining and bulk solids handling industries.
“The fundamentals of the company are very good. It has seen strong top-line and bottom-line growth in recent years with increased margins and has healthy cash flow. The outlook for the industry is also bullish. Long term investors should keep this company in their portfolio,” says Ayush Agarwal, Senior Research Analyst – Merchant Banking, Swastika Investmart Ltd.
Partha Nyati, Founder, Tradingo said: “The Kolkata-based company with strong management and strong fundamentals went public today. The overwhelming response from investors prompted the IPO to be subscribed 219 times. The IPO was purely OFS based where its PE funds are coming out, but the company is cash-rich. price in the beginning 453 each, the issue increased by 66% and was listed 760. If this momentum continues, the company can outperform going forward. New investors can wait for the downside to buy, while long term investors should keep the stock with them. Those who have got allotment should keep a stop loss of 690.”
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