Tega Industries IPO to Drop in Early December

5 August 2022
3 mins read
Tega Industries IPO to Drop in Early December

Tega Industries, a company involved in the production of ‘critical to operating’ products for the mining industry, is all set to join 2021’s IPO bonanza. Its IPO will open for subscription on 1 December 2021.

Find out more about this story below.

Key Highlights of the Tega Industries IPO

  • The initial public offering of Tega Industries will open for subscription on 1 December 2021 and close on 3 December 2021. The IPO will last for 3 days. Moreover, this company expects to hit stock markets on 13 December 2021.
  • This IPO is unique sincethere will not be any fresh issuance of equity shares. There is only an OFS or offer of sale from existing promoters and shareholders. These promoters and shareholders are planning to divest themselves of close to 13.67 million shares.
  • The draft red herringprospectus (DRHP) states that the following promoters and shareholders will dilute their stake in the company.
Name of the Promoter/Shareholder Amount of Shares They Will be Selling
Mr. Modan Mohan Mohanka 3.31 million shares
Mr. Manish Mohan 0.66 million shares
Wagner Ltd., which is an affiliate of US-based TA Associates, a private equity firm 9.69 million shares
  • The face value of each share is Rs. 10, and the listing will occur on both the National Stock Exchange and the Bombay Stock Exchange.
  • The objective of Tega Industries forlaunching this IPO is to reap the benefits of listing on the stock exchange.

About Tega Industries

Tega Industries is well-known in the mining industry as a producer of mill liners. Moreover, this company is the second-largest mill liner producer based on the revenue for the year 2020. This company offers multiple solutions to aid clients in the following domains:

  • Bulk solid handling
  • Mineral beneficiation
  • Mining

Tega Industries has a comprehensive product portfolio. Take a look at its products:

  • Wear and abrasion-resistant rubber
  • Polyurethane
  • Ceramic and steel-based lining components

The company’s product portfolio comprises 55 products related to the mining industry. This company has 6 manufacturing sites. They are located in:

  • Dahej in Gujarat
  • Samali in West Bengal
  • Kalyani in West Bengal
  • Chile
  • South Africa
  • Australia

Further, this company is looking to extend its operations in the North American, South American, South African, and Australian markets.

Financial Performance of Tega Industries

The financial performance of Tega Industries is shown below for the fiscal years 2019, 2020, 2021.

  Particulars (in Millions)
For the year/period ended Total Assets Total Revenue Profit After Tax
31-Mar-21 Rs. 10,183.39 Rs. 8,566.84 Rs. 1,364.05
31-Mar-20 Rs. 8,873.15 Rs. 6,955.42 Rs. 655.04
31-Mar-19 Rs. 7,902.68 Rs. 6,430.13 Rs. 326.7

Strengths of Tega Industries

Listed below are a few of the strengths of Tega Industries.

  • It is among the world’s largest producers of polymer-based mill liners.
  • Moreover, there is an experienced team of managers at the helm of affairs in Tega Industries.
  • In addition, there is a high focus on quality control and research and development.
  • It also has a solid worldwide customer base.

Bottom Line

Tega Industries is one of a kind company that produces mill liners, among other products. With the view to expand to foreign markets, the company is taking the IPO route to reap the positive bull markets.

 

Frequently Asked Questions

  1. Who are the lead book-running managers of the issue?

Ans. Axis Capital and JM Financials are the lead book-running managers for this issue.

  1. Who are the promoters of Tega Industries?

Ans. The promoters of Tega Industries are:

  • Madan Mohan Mohanka
  • Manish Mohanka
  • Manju Mohanka
  • Mehul Mohanka
  • Nihal Fiscal Services Private Limited
  1. What stake do the divestors hold in Tega Industries?

Ans. Mr. Madan Mohan Mohanka holds around 13.07% stake in this company. Meanwhile, Manish Mohanka has approximately 11.98% share in Tega Industries, while Wagner Ltd. has a share percentage of 14.62%.