India’s Tega Industries fixes IPO float price; TA Associates arm to sell stake
By Vinu Lal
11:32, 26 November 2021
Indian manufacturer of consumables for the mining industry Tega Industries has fixed a price band of INR443–INR453 ($5.91–$6.05) per share for its initial stake sale to the public, the company said in a stock exchange update listed on the Bombay Stock Exchange (BSE).
The initial public offering (IPO) will open for subscription on 1 December and could raise INR6.19bn at the upper end of the price band. The IPO is entirely an offer for sale (OFS) of up to 13.67 million shares by investors in the company.
Tega Industries is a manufacturer and distributor of specialised critical material consumable products for the global mineral beneficiation, mining- and bulk solids-handling industry.
As of 30 June 2021, Tega Industries is the second-largest producer of polymer-based mill liners globally on the basis of its revenues, as stated in a quote from an F&S report in the filing papers.
Private equity partner to sell
Wagner Ltd (WGN), an affiliate of US-based private equity firm TA Associates, would offload up to 9.69 million shares through the OFS.
A number of individual investors would also be tendering their stakes, according to the red herring prospectus (RHP, or final papers) filed with the domestic regulator.
The public subscription for the IPO would close on 3 December, while the firm plans to list on exchanges on 13 December. The company will not receive any proceeds from the offer.
For the financial year 2021, the company’s net profit soared to INR1.36bn (£1.3m, $18.15m, €16m) from INR655m recorded a year ago. Its revenue from operations rose 17.62% to INR8.06bn in FY2021, primarily attributable to an increase in the sale of products, from INR6.85bn recorded in fiscal 2020, as the final papers showed.
The company is based out of the eastern city of Kolkata. It gets its maximum business from overseas markets including North America, South America, Europe, the Middle East and Russia, Africa and Asia Pacific. These markets contributed about 86.42% to its revenue in FY21.
Axis Capital and JM Financial are the managers to the issue.