NEW DELHI: The initial public offer (IPO) of Tega Industries saw strong response on the first day of bidding on Wednesday. The issue was fully subscribed within an hour.
The issue saw 4.7 times subscription as of 5:00 pm, data on NSE showed. Investors applied for 4,46,62,233 shares against 95,68,636 shares on offer.
The issue is entirely an offer for sale (OFS) of up to 13,669,478 equity shares by promoters and existing shareholders and the company will not receive any proceed ..
The company has fixed its price band in the range of Rs 443-453 apiece. Investors can bid for a minimum of 33 shares and in multiples thereof. The issue can be subscribed till Friday, December 3.
Majority of the brokerages have a positive view on the issue and have recommended subscribing to the IPO, citing attractive pricing and market leadership.
Tega is the second largest producer of polymer-based mill liners in the world on the basis of sales as of June 2021. It has a highly diversified revenue stream from various geographies of the world.
The IPO is valued at 22x FY21 earnings, which looks attractive compared to its close peer AIA Engineering, said Reliance Securities with a subscribe rating on the issue.