Record! Tega Industries IPO attracts highest ever QIB subscription in the decade; category was booked 215 times

For the first time in a decade of the primary market, the initial public offer of Tega Industries Limited has received the highest ever subscription from qualified institutional buyers (QIB) category in the decade. In a three-day period, the QIB portion was booked 215.45 times, while the overall offer is subscribed 219.04 times. 

The qualified institutional buyers (QIB) received bids for 58,90,17,198 equity shares as compared to 27,33,896 equity shares on offer, as per the exchange data.   

It is said that the robust QIB category bid indicates money is waiting on the sidelines for quality IPOs since interest in the broader markets seemed less. The brokerage is of the view that QIB interest is higher in new kind of businesses where either there are little or no listed companies in that space. 

Before Tega Industries, the QIB portion of HDFC Asset Management Company was subscribed most by 192.26 times, followed by Indigo Paints 189.57 times, Tatva Chintan 185.23 times and Mrs. Bectors Food Specialties 176.85 times. 

The overall IPO has received bids for 2,09,58,69,600 equity shares against the offered 95,68,636 equity shares, as per the 5:00 pm data available on the bourses. Retail investors put in bid 29.44 times, while the portion set aside for non-institutional investors was subscribed 666.19 times.  

The primary offering was entirely an offer for sale (OFS) shares with a face value of Rs 10 each, in which its existing shareholders and promoters stood to offload 1,36,69,478 equity shares in the range of Rs 443-453 each. 

On Tuesday, Tega Industries raised Rs 186 crore from 14 anchor investors, who were allotted 41,00,842 equity shares at the upper price band of Rs 453 per share. 

Ashoka India Equity Investment Trust PLC, Goldman Sachs, Kotak Funds – India Midcap Fund, Kuber India Fund, Elara India Opportunities Fund, and BNP Paribas Arbitrage are among the investors that participated in the anchor book. 

Axis Capital Limited and JM Financial Limited are the Book Running Lead Managers (“BRLM”) to the offer.  

Brokerage Houses like ICICI Direct, Marwadi Share Finance, Choice Equity, Angel Broking etc. have given recommendations of "Subscribe" to the issue for long term perspective.