TechEra Engineering IPO booked at 70 times on final day, NII portion subscribed 128 times

The initial public offering (IPO) of TechEra Engineering (India) Limited continued to witness a strong response from all section of investors during the final day of bidding, with a strong response from the NII segment. By 6 pm, the IPO had received bids for 20,32,44,800 shares, against a total offering of 29,12,000 shares, achieving an overall subscription rate of 70 times, according to data from Chittorgarh.

The retail investors' segment was subscribed 66.52 times, while the non-institutional buyers' portion saw a 128 times subscription. The QIB portion booked at 31.22 times.The company aims to raise ₹35.90 crore through the IPO, which is entirely a fresh issue of 43.78 lakh shares. The price band for the offer is set between ₹75 and ₹82 per equity share, with a face value of ₹10 each.

Listing and allotment details

The allotment for the IPO is expected to be finalised on Thursday, September 30, 2024. The shares are scheduled to list on the NSE SME platform, with a tentative listing date of Thursday, October 3, 2024. SKI Capital Services Limited is the book-running lead manager of the TechEra Engineering IPO, while Kfin Technologies Limited is the registrar for the issue.

The company plans to utilise the net proceeds for several key purposes. These include funding capital expenditures for the acquisition of new machinery, addressing its working capital requirements, and prepaying or repaying a portion of certain outstanding borrowings. Additionally, the proceeds will be allocated towards general corporate purposes and covering issue-related expenses.

About TechEra Engineering

The company engages in the design, manufacture, and supply of precision tooling, components for the aerospace and defence industries, and automation system solutions. Its portfolio includes assembly toolings, jigs, fixtures, maintenance, repair, and overhaul (MRO) toolings, ground support equipment, and precision machined components. It utilises advanced manufacturing technologies, such as 5-axis machining and 3-D modelling for design visualisation, to meet the requirements of its target sectors.

The company has participated in notable projects, including the manufacture of tooling for the commercial aircraft vertical fin assembly line and fighter wing skin layup tool, indicating its capability to execute complex engineering projects, as per the company's DRHP filing.

TechEra Engineering IPO GMP

The grey market premium (GMP) for TechEra Engineering’s IPO is currently ₹20 per share, indicating that the shares may list at ₹20 above the issue price. Given the IPO's issue price of ₹82 per share, this suggests an estimated listing price of around ₹102, representing a 24.4 per cent premium.

GMP represents the difference between the issue price and the anticipated listing price in the unofficial market, offering insight into investor demand and sentiment ahead of the stock's official trading debut. However, it's crucial to remember that GMP is a preliminary estimate and should not be the sole factor in making investment decisions.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.