About the Company:
Tega Industries Ltd is a leading manufacturer and distributor of specialized ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining and bulk solids handling industry.
Globally, company is the second largest producers of polymer-based mill liners, on the basis of revenues as of June 30, 2021.
Company offers comprehensive solutions to marquee global clients in the mineral beneficiation, mining and bulk solids handling industry, through our wide product
portfolio of specialized abrasion and wear-resistant rubber, polyurethane, steel and ceramic based lining components.
Company’s products are used by customers across different stages of mining and mineral processing, screening, grinding and material handling, including after-market
spends on wear, spare parts, grinding media and power, which are regular operating expenses for company’s customers.
Company’s product portfolio comprises more than 55 mineral processing and material handling products.
Company’s History:
Tega Industries Ltd commenced operations in 1978 in India, with a foreign collobaration with Skega AB, Sweden.
Company’s MD and CEO, Mehul Mohanka, has been involved in the Company’s business for the last 18 years, and has led the business as company’s Managing Director and Group CEO for the last 5 years.
In 2011, company received funding from Wagner Ltd., an entity affiliated with TA Associates, a global private equity firm.
Company’s Manufacturing facilities:
Company has six manufacturing sites, including three in India, at Dahej in Gujarat and at Samali and Kalyani in West Bengal, and three sites in major mining hubs of Chile, South Africa and Australia, with a total built-up area of 74,255 Sq. mts.
Company’s facilities in India caters to the domestic and overseas markets across mineral processing and materials handling industries.
Company’s facilities in Chile, South Africa and Australia caters to their respective local and regional mineral processing and materials handling industries.
Company’s Capacity Utilization:
Company’s Offices:
Company has 18 global and 14 domestic sales offices located close to our key customers and mining sites.
Company’s business in South Africa:
In order to expand the operations globally, company acquired Tega Industries Africa (Pty) Ltd in FY 2007 which is a South Africa based manufacturer and distributor of grinding mill liners and screen media, amongst others and this gave us access to manufacturing capabilities and customers in Africa’s mining and industrial markets.
Company’s Business in Chile:
Company continued the expansion and acquired Chile based Tega Industries Chile SpA (formerly Acotec SA) (“Tega Chile”) in FY 2011 which is involved in the manufacture of pumps, screen media and wear products.
The facilities in Chile give company access to the South American markets including Chile, Peru and Bolivia.
Revenue from Exports:
Revenue from operation from outside India constituted 84.48%, 86.42%, 85.92% and 85.83% of revenue from operations in the three months period ended June 30, 2021 and Fiscals 2021, 2020 and 2019, respectively.
Revenue from operation from outside India include North America, South America, EMER (Europe, Middle East and Russia), Africa, and Asia Pacific (South East Asia and Australia) which constituted 13.74%, 24.71%, 15.49%, 22.62% and 9.85% of revenue from operations in Fiscal 2021.
Competitors in the Business:
Management Team:
- Mr. Madan Mohan Mohanka (Designation: Chairman and Executive Director)
- Mr. Mehul Mohanka (Designation: Managing Director and Group CEO)
Objectives of the Issue:
Offer for Sale: (Rs. 619 cr)
- Company will not receive any proceeds from the Offer. All proceeds from the Offer will go to the Selling Shareholders.
Positives for the Company:
Long standing market player with global customer base and strong global manufacturing and sales capabilities.
- Company commenced operations with a foreign collabaration with Skega AB, Sweden in 1978.
- Over time, company has diversified the capabilities by expanding product portfolio and augmenting the technical capabilities.
- Starting from one manufacturing facility in 1978, company has now grown to operate six manufacturing facilities across the globe.
Plans to Expand the manufacturing capabilities to achieve better economies of scale.
- Company plans to continue expanding the manufacturing capabilities in order to capture future growth trends.
- In order to enhance the existing capabilities, company plans to expand the manufacturing capacity and capabilities, both in India and overseas. Company is also planning to expand existing capacity at Dahej and Samali facilities in India.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 30th June 2021 |
|---|---|---|---|---|
| Revenue | 643.0 | 695.5 | 856.6 | 179.3 |
| Net Profit | 23.8 | 60.5 | 150.4 | 17.4 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Tega Industries Ltd | 10 | 20.48 | 22.11 | 22.23% | 105.04 |
| AIA Engineering Ltd | 2 | 60.02 | 31.71 | 13.33% | 449.99 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 1st December 2021 |
| Issue Closes on:. | 3rd December 2021 |
| Issue Price | Rs.443 – 453 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 33 shares |
| Minimum Investment | Rs.14,949 |
| Issue Constitutes | 20.61% |
| Issue Size | Rs.619 cr ($ 83 million) |
| Market Cap | Rs.3000 cr ($ 405 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,36,69,478 |
| Equity Shares Prior to the Issue | 6,62,93,149 |
| Equity Shares after the issue | 6,62,93,149 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 8th December 2021 |
| Initiation of Refunds | on or Before 9th December 2021 |
| Credit of Equity Shares: | on or Before 10th December 2021 |
| Listing Date: | on or Before 13th December 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 27,33,896 | 0.07 | 3.35 | 215.45 |
| NII | 20,50,422 | 4.16 | 20.23 | 666.19 |
| Retail | 47,84,318 | 7.47 | 16.97 | 29.44 |
| Employee | ——– | —- | —– | —– |
| TOTAL | 95,68,636 | 4.64 | 13.78 | 219.03 |
Note: Retail Subscription on the basis of Applications: 24.03x
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 20.48 | 22.11 | 22.23% | 105.04 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Tega Industries Ltd Office Space No. 807, 8th Floor Godrej Waterside-Tower II, DP-5 Bidhannagar, Salt Lake, Sector V Kolkata 700 091 West Bengal, India. Tel: +91 33 3001 9000 E-mail: compliance.officer@tegaindustries.com Website: www.tegaindustries.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West, Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: tega.ipo@linkintime.co.in Website: www.linkintime.co.in |
