Kolkata-based Tega Industries Ltd, which offers products and services to the mining industry, made a stellar debut on the stock exchanges on Monday with its shares listing at a 66% premium to the initial public offering (IPO) price.
Shares of Tega Industries began trading on the BSE at Rs 753 as against its IPO price of Rs 453 apiece. The stock touched a high of Rs 767 and a low of Rs 721 per share in early trade.
The BSE’s benchmark Sensex was quoting up 0.7% in morning trade.
Tega now commands a market capitalization of around Rs 4,984 crore ($659 million) versus a valuation of Rs 3,003 crore it sought through the IPO.
The strong start to Tega Industries follows an IPO that was subscribed 219 times after getting bids worth over $12.6 billion for the IPO of Rs 619.22 crore ($82.3 million). The IPO was fully subscribed within an hour on the first day of subscription thanks to retail investors.
Ahead of the IPO, Tega raised Rs 185.76 crore (about $25 million) from a bunch of anchor investors by allotting 4.1 million shares at the upper end of the Rs 443-453 price band.
The IPO was entirely a secondary market sale of 13.67 million shares by Tega’s promoter and TA Associates. The Boston-based PE firm sold its entire 9.69 million, representing a 14.54% stake.
TA Associates fetched Rs 439 crore and clocked modest annualised returns. It had bet on the company in 2011.
The exit from Tega is TA Associates’ fourth liquidity event so far this year. It partially exited Atria Convergence Technologies Ltd and payments company BillDesk in August and Ideal Cures Pvt. Ltd two months later — all via secondary deals.
The PE firm has also proposed to sell its stakes in portfolio companies Prudent Corporate Advisory Services Ltd and software-as-a-service firm RateGain Travel Technologies Ltd via their IPOs.
Incorporated in 1976, Tega is the second-largest maker of polymer-based mill liners by revenue in India. Its product portfolio comprises more than 55 mineral processing and material handling products.
Axis Capital and JM Financial were the merchant bankers that arranged the Tega share sale.