Tempsens Instruments IPO Subscribes 7X, Eyes 90% Premium
By ThePip Desk
Tempsens Instruments IPO surges past 7X subscription on day 2, driven by NII & retail demand. Grey Market Premium suggests a potential 90% listing gain.
The Tempsens Instruments (India) IPO secured over seven times subscription by its second day of bidding. Demand was robust across investor categories, with the Grey Market Premium (GMP) indicating a potential 90% listing premium.
- Non-institutional investors (NIIs) subscribed 16.99 times.
- Retail individual investors (RIIs) subscribed 7.14 times.
This ₹650-crore issue, priced between ₹285 and ₹300 per share, is scheduled to close on August 24.
Investor Backing and Market Signals
Tempsens Instruments had already raised ₹194.5 crore from anchor investors. These included major domestic mutual funds and international firms such as Goldman Sachs.
- GMP for Tempsens Instruments shares: ₹270.
- Indicative listing price: approximately ₹570.
- Potential premium over issue price: 90%.
Financials and Strategic Deployment
The company reported a revenue of ₹444.9 crore in FY26, marking a 17.5% increase from FY25. Profits grew by 11.2% to ₹67.3 crore in the same period.
Proceeds from the IPO are allocated for several key areas:
- Capital expenditure in electrical heating solutions.
- Investment in specialized cable businesses.
- Repayment of existing debt.
- General corporate purposes.
Tempsens Instruments’ domestic business accounted for 71.5% of its FY26 revenue. The Indian temperature sensor market, projected to reach ₹28.8 billion by FY31E, continues its shift towards local manufacturing, positioning the company for further growth.