Tega Industries listed on the stock exchanges with a top rate of nearly 70 percentage on December 13 after its preliminary public supplying was subscribed 219 times.
The beginning rate at the BSE was Rs 753 in opposition to an issue price of Rs 453 per proportion and Rs 760 on the National Stock Exchange.
The Rs 619-crore public difficulty of the second biggest manufacturer of polymer-primarily based mill liners noticed the best certified institutional subscription in a decade, at 215 instances the reserved component. The retail component turned into subscribed over 29 instances.
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Analysts have been upbeat on the difficulty and had ‘subscribe’ rating at the returned of commercial enterprise boom potentialities, robust fundamentals, area of interest running section and decrease competition.
What ought to traders do now? Here’s what analysts are saying:
Gaurav Garg, Senior Research Analyst, CapitaVia Global Research
Tega industries is certainly one of the biggest producers of polymer-based totally mill industries. The business enterprise has in-house R&D and production talents and a sturdy consciousness on best manage.
If investors need brief-time period profits, then they could e-book the invested amount for the subscription and hold the profits for the long term.
Astha Jain, Senior Research Analyst, Hem Securities
We advocate traders to ebook partial earnings and keep the remaining allotment for the long term because the employer is a leading manufacturer of specialized and “vital to operate” products, with excessive obstacles to alternative or substitution. It is likewise insulated from mining capex cycles as its merchandise cater to after-market spends, making sure ordinary sales.
The agency has high cost-upload and technology intensive products, subsidized by way of sturdy R&D and attention on first-class manipulate. That is supported through a marquee international client base and strong international manufacturing and income talents.
Divam Sharma, Founder, Green Portfolio
At P/E multiples of upwards of 50 instances, buyers who've been allocated Tega’s stocks have to study booking their income as notwithstanding the growth in commercial enterprise, the employer seems to be priced on the higher quit.
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Prashanth Tapse, Vice President (Research), Mehta Equities
We advise allocated buyers to partial ebook 50% earnings and maintain 50% thinking about it is a long term play, and the marketplace continually rewards a player that has excessive growth potential.
If traders want to feature Tega Industries these days, they can purchase in early trades most effective a good way to keep it for the long term.
We just like the recurring sales business version as the products cater to the after-market spend capex of a mining processing unit resulting in repeat orders of spares, that's commonly 3 instances of the in advance capex spend over the existence cycle of a mill.
Sonam Srivastava, Founder, Wright Research
We accept as true with Tega offers comprehensive answers to marquee international customers and is an top notch lengthy-time period hold.
Santosh Meena, Head of Research, Swastika Investmart:
Tega industries’ debut become on expected line as the gray market become indicating a list advantage of sixty five-70%.
The basics of the employer are very sound and the outlook for the enterprise is also bullish. Therefore, long-time period investors ought to keep this organization into their portfolio at the same time as folks that applied for listing benefit can maintain a forestall loss at Rs 690.
The Kolkata-based organisation has a robust management and sound basics, and may perform a good deal higher going ahead. New traders can await a dip to buy, at the same time as long-time period investors must maintain this stock. Those who've received the allotment must preserve a stop loss of Rs 690