Tempsens Instruments IPO booked 132x so far on final day; GMP at 107%

Tempsens Instruments IPO GMP: Investors were scrambling to get a piece of Tempsens Instruments' initial public offering (IPO), which was already subscribed a whopping 132 times so far on the third and final day of the book-building process.

 

According to data available on BSE, Tempsens Instruments' IPO garnered bids for 200.21 crore shares as against 1.51 crore shares on offer as of 2.55 PM, resulting in a subscription of 131.88 times. The non-institutional investor (NII) quota was booked the most at 287.39 times, followed by the qualified institutional buyer (QIB) segment at 153.90 times. The retail quota received  52.82 times bids and the employee portion 106.24 times.

 

The company is engaged in the manufacturing of temperature sensing solutions, electrical heating systems, and specialised cables for critical industrial applications. The company boats a strong market position in a segment with high entry barriers.

 

The grey market premium (GMP) for the offer remained robust, suggesting a multibagger listing ahead. According to websites tracking the unofficial market, Tempsens Instruments IPO GMP was ₹322. This means shares of the company were trading at ₹622, up 107 per cent.

 

Tempsens Instruments IPO details

The ₹650-crore Tempsens Instruments IPO opened for bidding on August 20 and closes today, August 24. Investors can place bids till 5 pm.

 

The offer is a mix of fresh share sale worth ₹95 crore and an offer for sale of ₹555 crore. The fresh proceeds raised will be used for funding capex for electrical heating and specialised cable solutions, repayment of certain borrowings and general corporate purposes.

 

The price band for the offer is fixed at ₹285 to ₹300 per share.

 

Analysts largely held positive views on the IPO and recommended investors to subscribe to the issue for listing gain as well as a long-term horizon.

 

While the business is working-capital intensive, with inventory days increasing from 76 in FY24 to 92 in FY26 and receivable days rising from 61 to 70, SBI Securities believes the company's market leadership, diversified business model, export growth, and strong financial profile provide a favorable risk-reward proposition.

 

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