Tempsens Instruments IPO booked 2x in 90 mins; analysts give thumbs up

Tempsens Instruments IPO: The initial public offer (IPO) of Tempsens Instruments sailed through in less than an hour of opening. The offer has garnered positive views from brokerages given its strong market position in a segment with high entry barriers along with strong growth profile. The offer opened for bidding today, August 20, and closes next week on August 24.  

As of 11.30 AM, the offer received bids for 3,05,03,300 shares as against 1,51,81,667 shares on offer, resulting in a total subscription of 2.01 times. The non-institutional investor (NII) quota was subscribed 3.62 times, retail portion 2.45 times and employee quota 3.76 times. Lastly, the qualified institutional buyer (QIB) segment received 0.01 times bids.

 

 

Tempsens manufactures temperature sensing solutions, electrical heating systems, and specialised cables for critical industrial applications. According to the F&S Report, they are the largest manufacturer of contact and non-contact temperature sensors in India in terms of revenue as of March 31, 2026, with a market share of approximately 10.5 per cent in the temperature sensor segment in Fiscal 2026. 

 

Over FY24-FY26 period, it delivered a strong Revenue/EBITDA/PAT (post-minority interest) CAGR of 27.2 per cent/35.2 per cent/28.2 per cent respectively, while maintaining a healthy balance sheet with a Debt/Equity ratio of 0.2x. 

 

Tempsens Instruments IPO Details

The ₹650-crore Tempsens Instruments IPO is a mix of fresh share sale worth ₹95 crore and an offer for sale of ₹555 crore. The price band for the offer is fixed at ₹285 to ₹300 per share. Investors can apply for the offer in lots of 50 shares. 

 

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 grey market premium (GMP) for the offer is robust. According to websites tracking the unofficial market, Tempsens Instruments IPO GMP is Rs 220 or 73 per cent, suggesting a listing price of ₹520.

 

Tempsens Instruments IPO: Should you apply?

Analysts have assigned subscribe ratings from a long-term perspective to Tempsens Instruments IPO, with some flagging its steep valuations. Here's what they said:

 

SBI Securities

At the upper price band of ₹300, the issue is valued at a FY26 P/E of 37.3x on a post-issue basis. 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 believe the company's market leadership, diversified business model, export growth, and strong financial profile provide a favorable risk-reward proposition. It therefore recommend investors to SUBSCRIBE to the issue at the cut-off price.

 

Swastika

Financials show healthy growth and margins, and the diversified revenue mix (Projects + MRO) adds resilience. Key risks include sector cyclicality, Udaipur manufacturing concentration, and rising working capital intensity, it flagged. 

 

Furthermore, valuation is not cheap for an industrial niche manufacturer without direct listed comparables, and the business remains working-capital intensive with real customer/sector concentration risk, according to the brokerage. Fundamentally sound for long-term investors seeking exposure to India's industrial indigenisation theme and short-term listing gains, while keeping premium valuation in mind, Swastika said.

 

KC Securities

At the upper price band of ₹300, the issue is valued at 37.3x FY26 P/E, which is at a premium but can be justified by its superior growth, niche positioning and leadership in the segment, said KC Securities. 

 

"Overall, we view Tempsens as an attractive growth-oriented industrial opportunity, with potential for long-term value creation. Hence, we recommend investors to subscribe issue for listing gain as well as long-term horizon," it added.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.