Tega Industries IPO - Subscription Day 1
5paisa Research Team
Last Updated: 13th December 2022 - 04:29 pm
The Rs.619.23 crore IPO of Tega Industries, consisting entirely of an offer for sale (OFS) of Rs.619.23 crore, saw robust response on Day-1 of the IPO.
As per the combined bid details put out by the BSE at the close of Day-1, Tega Industries IPO was subscribed 4.67X overall, with strong demand coming from the retail segment and the HNI segment with little action seen in the QIB counters. The issue closes for subscription on 03rd December.
As of close of 01st December, out of the 95.69 lakh shares on offer in the IPO, Tega Industries saw bids for 446.62 lakh shares. This implies an overall subscription of 4.67X.
The granular break-up of subscriptions was dominated by the retail investors followed by the HNIs. The QIB response was almost absent. However, the QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.
Tega Industries IPO Subscription Day-1
|
Category |
Subscription Status |
|
Qualified Institutional Buyers (QIB) |
0.07 Times |
|
Non Institutional Investors (NII) |
4.17 Times |
|
Retail Individuals |
7.51 Times |
|
Employees |
N.A. |
|
Overall |
4.67 times |
QIB Portion
Let us first talk about the pre-IPO anchor placement. On 30th November, Tega Industries did an anchor placement of 41,00,842 shares at the upper end of the price band of Rs.453 to 25 anchor investors raising Rs.185.77 crore.
The list of QIB investors included a number of marquee global names like Goldman Sachs India Portfolio, Ashoka India Fund, Kuber India Fund, Elara India Opportunities Fund and BNP Paribas Arbitrage Fund. Domestic anchor investors included SBI Mutual Fund, Birla MF, HDFC MF, Mirae MF, Axis MF and Tata MF.
The QIB portion (net of anchor allocation as explained above) has a quota of 27.34 lakh shares of which it has got bids for just about 1.96 lakh shares on Day-1, implying 0.07X subscription for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the robust demand for the anchor placement forebodes well for the Tega Industries IPO subscription overall.
HNI / NII Portion
The HNI portion got subscribed 4.17X (getting applications for 85.49 lakh shares against the quota of 20.50 lakh shares). This is a relatively good response on Day-1 but of course this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO.
Retail Individuals
The retail portion was subscribed a more robust 7.51X at the end of Day-1, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is 35% in this IPO.
For retail investors; out of the 47.84 lakh shares on offer, valid bids were received for 359.17 lakh shares, which included bids for 277.55 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.443-Rs.453) and will close for subscription on 03rd December 2021.
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Sachin Gupta
5paisa Research Team
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