|IPO-Note||Tega Industries Ltd|
|Rs 443 – Rs 453 per Equity share||Recommendation: Subscribe|
Tega Industries Limited IPO (Tega Industries IPO) Company Profile: –
Tega Industries Limited is the second largest producer of polymer based mill liners headquarter in Kolkata. Company produce product across the value chain of mineral processing site and provide post mining support service for the global mineral extraction companies, offers a range of specialized abrasion and wear-resistant rubber, polyurethane, steel and ceramic based lining components which helps in operating efficiency of their customer. Company has a portfolio of 55 products, around 20% of the revenue come from India and 80% come from foreign market, company has 513 installation site spread over 70 countries. Tega has six manufacturing site three are in India and other are in Chile, South Africa and Australia. Company is expanding its global footprint by entering into new partnership like with a Hosch Group Germany and recently acquired companies in Africa and chile.
Tega Industries Limited IPO (Tega Industries IPO) Details –
|Objects of the issue||· To get the benefit of listed company, since it’s an OFS capital will not go to the company.|
|Issue Size||Total issue Size -Rs. 619.23 Cr.
Offer for Sale – Rs. 619.23 Cr.
|Face value||Rs.10.00 Per Equity Share|
|Issue Price||Rs. 443 – Rs. 453|
|Bid Lot||33 shares|
|Listing at||BSE, NSE|
|Issue Opens:||1St Dec, 2021 – 3rd Dec, 2021|
|QIB||50% of Net Issue Offer|
|Retail||35% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
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Tega Industries Limited IPO (Tega Industries IPO) Financial Performance:
Tega Industries Limited IPO (Tega Industries IPO) Shareholding Pattern:
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoter Group||85.17%||79.17%|
Source: RHP, EWL Research
Tega Industries Limited IPO (Tega Industries IPO) Strengths:
In terms of revenue they are the second largest polymer based mill liners.
Company has very old and deep relation with global miners and has global collaboration with skega AB Sweden.
Company offers comprehensive mineral handling solutions which is post mining, so demand of its product are not dependent on the mining capex cycles as these are recurring product.
Company capacity utilization is very low of around 58% so the need for new investment in capacity expansion is not required and going forward operating leverage can also kick in.
Tega Industries Limited IPO (Tega Industries IPO) Key Highlights:
Revenue increased at 15.43% CAGR from FY18 to FY21, revenue in second half of year is around 60% of the total revenue.
PAT has increased with a CAGR of 104% from FY18 to FY21 EBITDA margin has improved drastically from 16.49% to 27.86% in three year.
In FY21 company has generated cash flow of ₹ 170 crore and free cash flow of ₹ 121 crore.
Company has reported ROE of 22.23% in FY 21
Company has an order book of ₹ 280 crore as on 31st March 2021.
Tega Industries Limited IPO (Tega Industries IPO) Risk Factors:
South Africa is a major market for the company and new covid variant in South Africa can impact business of the company.
Demand of mineral processing equipment is dependent on the minerals cycle and metal cycle so any downward trend in metals are going to affect business of tega industries.
Since this is an OFS so this capital is not going to be used for growth.
Tega Industries Limited IPO (Tega Industries IPO) Outlook:
Tega Industries offers wide range of products to its global customers in the mineral beneficiation and bulk solids handling industry. They are the second largest producers of polymer based mill liners and deal with the portfolio of specialized abrasion, wear-resistant rubber, polyurethane, steel and ceramic based lining components, these product are used across different stages of mining, material handling and processing. Company has shown strong revenue, profit growth in last three year and their EBITDA margin has improved significantly, as metal cycle is very strong globally, capacity utilization of the company is around 58% so the need for capacity expansion is low in near future. Tega Industries is available at a P/E of 22x on FY21 earning while peer companies are trading at P/E of 30x .We recommend SUBSCRIBE to this company seen the strong growth and leadership position of the company.
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Need An Assistance:
Tega Industries Limited IPO (Tega Industries IPO) FAQ
Ans. Tega Industries Limited IPO (Tega Industries IPO) will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on 01 December 2021.
Ans. The minimum lot size that investors can subscribe to is 33 shares.
Ans. The Tega Industries Limited IPO (Tega Industries IPO) listing date is 13 December 2021.
Ans. The minimum lot size for this upcoming IPO is 33 shares.
Ans. Link Intime India Pvt Ltd will be the registrar for this upcoming IPO.