Tega Industries IPO - Subscription Day 2

5paisa Research Team 5paisa Research Team 10th December 2022 - 05:56 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 and got oversubscribed on Day-1 of the IPO itself. As per the combined bid details put out by the BSE at the close of Day-2, Tega Industries IPO was subscribed 13.87X overall, with strong demand coming from the HNI/NII and the retail segment followed by the QIB segment. The issue closes for subscription on 03rd December.

As of close of 02nd December, out of the 95.69 lakh shares on offer in the IPO, Tega Industries saw bids for 1,326.79 lakh shares. This implies an overall subscription of 13.87X. The granular break-up of subscriptions was dominated by the HNIs / NIIs followed by the retail investors.

The QIB response was also quite strong considering that there is still one day left. 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-2

Category	Subscription Status
Qualified Institutional Buyers (QIB)	3.35 Times
Non Institutional Investors (NII)	20.48 Times
Retail Individuals	17.04 Times
Employees	N.A.
Overall	13.87 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.

Check - Tega Industries IPO - Subscription Day 1

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 a total of 91.51 lakh shares as of the end of Day-2, implying 3.35X subscription for QIBs at the close of Day-2. 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 a healthy 20.48X (getting applications for 419.87 lakh shares against the quota of 20.50 lakh shares). This is a relatively solid response at the close of Day-2 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, so the picture should only get better by close on Friday.

Retail Individuals

The retail portion was subscribed a healthy 17.04X at the end of Day-2, 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 815.41 lakh shares, which included bids for 623.53 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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