Can you tell me about the major highlights of the forthcoming Tega Industries IPO?

The Tega Industries IPO will open for subscription next week. Here is what you must know about the IPO structure and other key facets.

· Tega is hitting the primary market with a Rs.619 crore IPO. The IPO will open for subscription on 01-Dec and close on 03-Dec. The price band for the IPO has been fixed at Rs.443-453 per share.

· The total IPO will be an offer for sale by promoters and early investor, Wagner. The OFS will offer 136.69 lakh shares with minimum bid lot comprising of 33 shares. Retail investors in the IPO can bid for a maximum of 13 lots.

· Tega caters to the mining industry with its specialized polymer-based mineral handling products. Tega is among world’s largest producers of polymer based mill liners. Overseas business generates nearly 86.4% of the total business of Tega.

· The overseas business predominance is not surprising because out of its 6 manufacturing sites, 3 are abroad and are located in the mineral rich nations of Chile, Australia and South Africa.

· The basis of allotment for the IPO will be finalized on 08-Dec and refunds initiated on 09-Dec. The shares will be credited to demat accounts of eligible applicants by 10-Dec and the listing has been scheduled on 13-Dec.

· Tega had reported net sales of Rs.856.68 crore in the fiscal year FY21 and net profits of Rs.136.41 crore. This implies net profit margins of 15.92%. On a 2-year basis, the sales are up 33% while net profits are up 318%.