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Tempsens Instruments IPO: 73% Listing Gain Expected by Aug 28

By IPO DeskTempsens Instruments IPO: 73% Listing Gain Expected by Aug 28

Tempsens Instruments IPO, closing Aug 24, forecasts a significant 73.33% listing pop. Grey Market Premium (GMP) indicates strong investor demand.

The Tempsens Instruments IPO, which opened August 20 and closes August 24, anticipates a 73.33% listing premium. This projection comes from its current Grey Market Premium (GMP) of +220.

Key IPO Figures

  • IPO Price Band: ₹285-₹300 per equity share
  • Estimated Listing Price: ₹520 per share
  • Fresh Issue Size: ₹95 crore
  • Offer for Sale: 1.85 crore equity shares

This estimated listing price of ₹520 per share reflects the 73.33% premium over the upper IPO price. The GMP itself has fluctuated between ₹65 and +220 over the past six sessions.

Brokerage Outlook & Concerns

Brokerage firms generally hold a positive, though valuation-conscious, outlook on the Tempsens Instruments IPO. They highlight several company strengths.

  • Strengths Noted:
  • Specialized market position and high entry barriers
  • Advanced technical capabilities and healthy profit margins
  • Alignment with India’s industrial automation and manufacturing growth
  • Identified Risks:
  • Premium valuation
  • High working-capital intensity
  • Concentration of customers and sectors
  • Manufacturing operations primarily in Udaipur

Despite identified risks, Kantilal Chhaganlal Securities and Swastika Investmart recommend subscribing. They see potential for both listing gains and long-term holding.

IPO Proceeds & Allocation

The IPO aims to raise ₹95 crore via a fresh issue of shares, complementing an Offer for Sale (OFS) of 1.85 crore equity shares. Proceeds from the fresh issue have specific allocations:

  • ₹18.1 crore for capital expenditure in electrical heating and specialized cable solutions
  • ₹55 crore designated to repay existing borrowings

ICICI Securities and JM Financial are the merchant bankers for the issue, with Kfin Technologies serving as the registrar. Share allocation sets a maximum of 50% for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and at least 35% for Retail Investors.

Upcoming Timeline

  • Basis of Allotment: Tentatively August 25
  • Refunds Initiated: August 27
  • Shares Credited to Demat: August 27
  • Listing on BSE and NSE: August 28
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